Market likes what it sees as Alyzyme enters pivotal period
Drug developer Alizyme plc (AZM.L) this week reported it had halved interim net losses to £5.5m in the six months to end June from £10.1m in the same period in 2005.
It reported revenues of £1.1m compared to none previously. It had £22.8m in the bank at the end of June, down from £40.0m a year previously and £30.8m at the end of December.
Summing up the half year, CEO Richard Palmer (pictured) said “we have continued the development of our late stage product portfolio. We are progressing Phase III clinical trials with renzapride for the treatment of constipation predominant irritable bowel syndrome and with COLAL-PRED for the treatment of active ulcerative colitis, and are preparing our third product, cetilistat, for Phase III clinical development for the treatment of obesity and related diseases.
“In addition, we are assessing the optimum route for the further development of ATL-104 for the treatment of mucositis, following its successful Phase IIa 'proof of concept' study.”
The Cambridge-based company’s research and development expenditure was £6.9m (2005: £9.1m). It expects R&D spending will be rise in the second half of 2006 reflecting the recruitment of patients into the two Phase III clinical trials currently being conducted.
Management and administration expenses were £0.6m (2005: £0.5m).
Outlook
“The next period will be pivotal for Alizyme as we seek to exploit the commercial value inherent in our late stage product portfolio, Dr Palmer said.
The market took heart from the update, marking the share price up almost 15% to 106.5p after a steady decline since the whole market got the yips in May, valuing the company at around £195m.
12th August 2006
