GeneMedix cash running low as complexities delay restructuring
GeneMedix plc (GMX.L) today effectively set itself a two month deadline to complete critical parts of its restructuring when it announced an operating loss of £1.3m for the quarter to end February.
The UK-based biopharmaceutical with operations in Europe and Asia and with joint London and Singapore Stock Exchange listings said it believed there is enough finance available to take it through its restructuring period first announced in October.
GeneMedix is involved in the development and manufacture of therapeutic proteins using recombinant DNA technology and novel cell culture.
Acting CEO Julian Attfield (pictured) said "We have good prospects of receiving cash on the sale of our Chinese facility within a short timeframe, with total proceeds of approximately £1.6m being secured within a few months. It is also our intention to secure bridging finance at a time that we announce exclusivity with one party in our restructuring".
But he warned that "We must be clear, that, without achieving such cash inflows we only have sufficient resources to continue our current level of activity for a maximum of two months from [today]."
The company's share price shed 7.4%, or 0.25p to 3.13p on the news. It is now valued at £11.9m.
At the end of March, the company said it planned to complete the restructuring "over the coming few weeks".
Today Mr Attfield said: "We are aware that the restructuring process has taken longer than originally anticipated, but this is due to us operating in a complex technical and regulatory environment, which requires an extended and rigorous due diligence process on both sides of any transaction."
In talks
He said the company was in late stage negotiations with a number of parties. In the meantime it had continued to exercise prudent cost control and the development of its biosimilar erythropoietin (EPO) programme continued to show excellent results.
There were no revenues in the period.
The company reported in March that the Directors have known for a significant time that there has been a need through a transforming M&A transaction to enhance the infrastructure and product offering of the company.
"The real strengths of the company are the portfolio of EPO, Interferon-alfa and the lesser developed G-CSF, in combination with our quality manufacturing facility in Tullamore, Ireland, and highly experienced development, manufacturing and regulatory teams," Mr Attfield said back then.
30th May 2006
