TIDMDDDD
RNS Number : 6213Z
4d Pharma PLC
21 May 2019
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
21 MAY 2019
4D PHARMA PLC
("4D", the "Company" or, together with its subsidiaries, the
"Group")
Final Results for the year ended 31 December 2018
4D pharma plc (AIM: DDDD), a pharmaceutical company focusing on
the development of live biotherapeutics, is pleased to announce the
final results for the Group for the year ended 31 December
2018.
Financial highlights for the year:
-- Net assets of GBP45.8 million (2017: GBP69.8 million)
-- Cash and cash equivalents (including cash on deposit) of
GBP26.2 million (2017: GBP50.0 million)
-- Total comprehensive loss after tax of GBP24.3 million (2017: GBP19.4 million)
-- Adjusted loss per share of 36.17 pence (2017: 26.08 pence)
-- Basic and diluted loss per share of 36.17 pence (2017: 31.41 pence)
Operational highlights for the year:
Oncology:
-- Clinical collaboration with Merck & Co., Inc. to evaluate
MRx0518 in combination with Keytruda(R) (pembrolizumab)
-- Partnership with University of Texas MD Anderson Cancer
Center to evaluate our oncology candidates in various cancer
settings
-- Progression of lead oncology candidate, MRx0518, into Phase I/II clinical studies
o Phase I/II combination study with KEYTRUDA(R) (pembrolizumab)
in solid tumours
o Phase I monotherapy study of MRx0518 for solid tumours in a
neoadjuvant setting
Gastrointestinal disease:
-- Initiation of Phase II clinical study of Blautix(R) in Irritable Bowel Syndrome
-- Successful completion of Phase Ib Thetanix(R) study in paediatric Crohn's disease
Respiratory disease:
-- Regulatory progress for a Phase I/II study in asthma, expected to commence in coming months
Research:
-- Progression in identifying the efficacy and mechanism of our
core focus Live Biotherapeutics leading to significant
publications
-- Identification of two lead candidates for Parkinson's disease via the MicroRx(R) platform
-- Increased intellectual property portfolio with 56 patent
families and over 400 patents granted
David Norwood, Chairman of 4D pharma, commented "I am pleased to
be able to announce the Group's final results for the year ended 31
December 2018. The year has seen significant progress towards our
goal of producing Live Biotherapeutics as safe and effective
therapies. I would like to thank everyone in the Group for their
contribution to the progress we have made in 2018."
Duncan Peyton, Chief Executive Officer, commented "2018 has been
an exciting year for us with a number of clinical and research
goals achieved. I look forward to the coming year as we prepare for
clinical readouts that could revolutionise our quest to make
microbiome medicines a reality for patients. "
The Annual Report, together with a notice of the Company's
Annual General Meeting, will be posted to shareholders and made
available on the Company's website, www.4dpharmaplc.com, by 28 May
2019. The Annual General Meeting will be held on Thursday 20 June
2019 at 10 a.m. in the Chicago Room, Sofitel, Terminal 5, Wentworth
Drive, London Heathrow Airport, Hounslow TW6 2GD.
For further information please contact:
4D
Duncan Peyton, Chief Executive Officer + 44 (0) 113 895 0130
Fay Weston, Head of Investor Relations + 44 (0)7990 381713
Zeus Capital Limited - Nomad and Joint Broker
Dan Bate/Jordan Warburton +44 (0) 161 831 1512
Dominic King +44 (0) 20 3829 5000
Bryan, Garnier & Co. Limited - Joint Broker +44 (0) 20 7332 2500
Dominic Wilson
Phil Walker
Information on 4D
www.4dpharmaplc.com
Chairman's Statement
David Norwood, Non-executive Chairman
Performance
Since our last report, 4D has made significant progress taking
its Live Biotherapeutic products through the clinic in oncology,
gastrointestinal and respiratory disease. We now have four products
in clinical development with two studies ongoing in oncology, two
in gastrointestinal disease and another in respiratory disease. The
speed at which 4D has been able to enter clinical development is a
reflection of the reduced preclinical work necessary to take
single--strain Live Biotherapeutics into the clinic.
As we move forward, our key goal is to deliver meaningful
clinical data to support the use of Live Biotherapeutics across
multiple indications in oncology, gastrointestinal, respiratory and
central nervous system diseases. We believe that through our
ongoing programme of clinical trials, we are well positioned to
achieve this.
Our research teams continue to further the understanding, both
of our programmes and their mechanisms, and of the microbiome
generally. Meanwhile our increasing intellectual property estate
helps secure our leading position in the field.
Our culture
The success of 4D is based on close collaboration between the
teams involved in all aspects of the business from discovery to
manufacturing and beyond. We could not have achieved what we have
without the continued support of our staff throughout our sites in
Europe and those involved in our wider collaborations. I would like
to thank them all for their contribution to the progress we have
made in 2018.
Board and governance
We were delighted to appoint Ed Baracchini, PhD, and Professor
Axel Glasmacher, MD, as independent Non--Executive Directors in
January 2019. We are already seeing benefits from their advice in
terms of commercial and clinical development.
The Board is committed to maintaining high standards of
governance, both at Board level and operationally throughout the
business. The Group's Corporate Governance Statement will be
published in the Annual Report.
Outlook
2018 has been an exciting year for 4D with numerous clinical
goals achieved. I look forward to the coming year and beyond with
great anticipation as we prepare for clinical readouts that could
revolutionise our quest to make microbiome medicines a reality for
patients.
David Norwood
Non-Executive Chairman
20 May 2019
Chief Executive Officer's Report
Duncan Peyton, Chief Executive Officer
Building towards our goal of delivering Live Biotherapeutics to
the market, 2018 has been an important year for 4D.
We continue to focus our attention on our oncology portfolio and
expand our footprint in the US, having struck partnerships with
Merck & Co., Inc. (known as MSD outside the United States and
Canada) and MD Anderson Cancer Center to develop our Live
Biotherapeutics in the field of oncology. Our collaboration with
Merck & Co. advances the clinical development of MRx0518,
combining it with the world-leading oncology product, whilst also
providing further validation of our capabilities. Our strategic
collaboration with MD Anderson Cancer Center will provide a
long-term platform to evaluate our Live Biotherapeutics across a
range of clinical cancer settings with some of the world's leading
clinicians in this field.
We have maintained our clinical and regulatory progress
throughout the year. Having received regulatory clearance from the
FDA, MHRA and HPRA in November 2018 we commenced a large Phase II
study of Blautix(R) in patients with IBS, further demonstrating our
commitment to generating the robust clinical data required to
support the approval of our products. This is not only an important
trial for 4D but also for the microbiome medicine space being the
largest trial in the space and is designed to deliver statistically
significant data.
Research
We have always believed in the importance of understanding the
mechanism and identifying the effector molecules of our products in
the same way that is done with more traditional drug candidates.
The continued effort by our research teams has generated further
data supporting our functionality approach helping 4D define the
field and identify novel ways forward. This not only gives us a
leading edge in the field but also translates into more
straightforward interactions with clinicians, regulators and the
broader pharmaceutical industry.
Over the past twelve months the Group has continued work on
expanding the use of the MicroRx(R) platform to further understand
the mechanism of action of the Live Biotherapeutic Products in the
product pipeline. This has led to the successful publication of a
number of papers in peer-reviewed scientific journals. The insights
provided are proving vital to decisions about the optimal clinical
pathway for our products and in ongoing discussions with regulatory
bodies and potential collaborators.
The expansion of MicroRx(R) has also allowed 4D to explore
business development opportunities beyond the core focus programmes
in oncology, gastrointestinal disease, respiratory disease and CNS
disease and we anticipate that this will lead to further partnering
opportunities in the coming year.
Oncology
We were delighted to announce our agreement with Merck & Co.
in June to conduct a clinical study evaluating the combination of
Keytruda(R) (pembrolizumab), an anti-PD-1 therapy, and MRx0518 in
patients with solid tumours. The Phase I/II study is evaluating
safety, tolerability and anti-tumour effect in patients with
advanced cancers who have progressed on prior anti-PD-1 therapy.
The study opened in early January and recruitment is ongoing at the
MD Anderson Cancer Center where the study is taking place.
A second clinical study, a randomised, placebo-controlled Phase
Ib study of MRx0518 as a monotherapy in a neoadjuvant setting for
patients due to undergo surgery as a first treatment for solid
tumours, is also ongoing. This study is taking place in the UK at
Imperial College London and will assess the safety, tolerability
and anti-cancer effects of MRx0518. These patients will receive
MRx0518 as a neoadjuvant for two to four weeks prior to surgery. As
participants will be treatment naïve, the study allows an
unambiguous assessment of the anti-tumour immunological effects of
MRx0518 in a clinical setting.
Throughout the year we have continued our work identifying the
mechanism of action of our lead candidate, MRx0518. We published a
key paper in January 2019, which outlines the role of the bacterial
flagellin in stimulating the immune system.
In light of the focus on oncology, 4D has sought to engage with
the best partners in the field as we progress our programmes
through the clinic. In January 2018 we formally announced our
strategic collaboration with the University of Texas MD Anderson
Cancer Center which we have been working with through 2018. The
alliance brings together MD Anderson's translational medicine and
clinical research capabilities with 4D's expertise in the discovery
and development of Live Biotherapeutics ("LBPs"). The collaboration
will evaluate our LBP oncology pipeline across a range of cancer
settings, including pancreatic cancer with a near-term focus on
MRx0518.
Gastrointestinal disease
Our lead product in gastrointestinal disease, Blautix(R) , for
IBS has made significant progress. We secured regulatory approvals
in both the US and EU to commence our Phase II study of Blautix(R)
in moderate to severe constipation-predominant IBS and
diarrhoea-predominant IBS. This Phase II randomised, double-blind,
placebo-controlled, multicentre study is now enrolling and will
recruit up to 500 participants at sites across the US and EU. We
believe that this study represents the largest clinical trial of a
Live Biotherapeutic to date. It should be noted that the primary
endpoint, overall response rate, is an FDA-approved endpoint for
the registration of new IBS products.
During 2018 we also completed the Phase Ib study of Thetanix(R)
, our product for Crohn's disease. This study in paediatric
patients successfully met the primary outcomes of safety and
tolerability and demonstrated results that match to the preclinical
data.
Building on the data from the Phase I study we have been
consulting with leading figures in the field and it has become
clear that the need for a safe and effective solution in the
paediatric population is growing in importance.
Respiratory disease
We have significantly advanced our asthma programme this year
and received regulatory approval for our Phase I/II
placebo-controlled study in poorly controlled asthma from the UK's
MHRA in December. This study will primarily evaluate the safety and
tolerability of MRx-4DP0004 in combination with existing
maintenance therapy and has a range of secondary endpoints designed
to evaluate efficacy. Further regulatory submissions are ongoing in
the EU and US and we anticipate commencing the study in these
territories shortly.
As with all our LBP programmes we have also focussed on
furthering understanding the function and potential mechanism of
our candidate. To this end in August we published a paper
demonstrating the activity of MRx-4DP0004 in preclinical models of
severe asthma. MRX-4DP0004 protects against airway inflammation by
reducing both neutrophilic and eosinophilic infiltration
concurrently as this is something that is not achievable with
current therapies. This gives us further confidence that 4D has the
capabilities to develop novel therapies for complex diseases.
Intellectual property
Since its inception, 4D has sought to establish a sector-leading
IP portfolio robustly protecting its candidate therapies. By
implementing an aggressive approach to securing patent protection,
supported by first class science, 4D now has the largest and most
comprehensive IP portfolio in the Live Biotherapeutics space with
over 400 granted patents across over 50 patent families. Statutory
exclusions to the patentability of naturally occurring matter,
perceived by some to preclude meaningful patent protection for
LBPs, have not constituted a barrier to 4D. All candidates in
clinical development are protected by granted patents in the US,
Europe and Japan with pending applications in all other significant
jurisdictions.
Financial summary
In the year to December 2018, our cash and cash equivalents and
short-term deposits reduced from GBP50.0 million to GBP26.2
million, with a loss before tax of GBP28.4 million (compared with
GBP24.0 million in the year to December 2017). Our claim for
research and development tax credit was GBP4.7 million (compared
with GBP3.5 million in the year to December 2017).
Our cash burn for the year was in line with expectation,
reflecting the increased costs of taking existing and new clinical
programmes forward and preparing for upcoming Phase I and II
trials.
The Group continues to manage its cash deposits prudently and
invests its funds across a number of financial institutions which
have investment grade credit ratings. The Board has continued to
operate a robust set of financial controls including rolling
short-term and long-term forecasts to assist in the control and
prioritisation of resources.
The Directors estimate that the cash held by the Group together
with known receivables will be sufficient to support the current
level of activities into the fourth quarter of 2019. The Directors
are continuing to explore sources of finance available to the Group
and have a reasonable expectation that they will be able to secure
sufficient cash inflows into the Group to continue its activities
for not less than twelve months from the date of approval of these
accounts. They have therefore prepared the financial statements on
a going concern basis.
Because the additional finance is not committed at the date of
approval of these financial statements, these circumstances
represent an uncertainty as to the Group's ability to continue as a
going concern.
Should the Group be unable to obtain further finance such that
the going concern basis of preparation was no longer appropriate,
adjustments would be required including to reduce the carrying
value of assets to their recoverable amounts, and to provide for
future liabilities that may arise.
Outlook
Throughout 2018, 4D made significant progress towards its goal
of producing Live Biotherapeutics as safe and effective therapies.
4D, at the forefront of this revolutionary field, is well
positioned to deliver positive clinical results to establish
confidence in the potential of this new class of medicines. Over
the next 12 to 24 months, the Group will lead the way in generating
robust clinical data to support the use of this new class of drugs
across indications including oncology, gastrointestinal and
respiratory disease. Our research programme and the progression of
the MicroRx(R) platform continue to advance our understanding as we
continue developing our novel Live Biotherapeutics at the forefront
of this revolutionary field.
Duncan Peyton
Chief Executive Officer
20 May 2019
Group Statement of Total Comprehensive Income
For the year ended 31 December 2018
31 December 31
December
2018 2017
Notes GBP000 GBP000
------------------------------------------------------- ----- ----------- ---------
Research and development costs (24,908) (16,911)
Administrative expenses (4,212) (3,529)
Foreign currency gains/(losses) 749 (431)
------------------------------------------------------- ----- ----------- ---------
Operating loss before non-recurring costs (28,371) (20,871)
Non-recurring costs 3 - (3,474)
------------------------------------------------------- ----- ----------- ---------
Operating loss after non-recurring costs (28,371) (24,345)
Finance income 282 482
Finance expense (348) (123)
------------------------------------------------------- ----- ----------- ---------
Loss before taxation (28,437) (23,986)
Taxation 4,747 3,541
------------------------------------------------------- ----- ----------- ---------
Loss for the year (23,690) (20,445)
Other comprehensive income
Exchange differences on translating foreign operations (601) 1,057
------------------------------------------------------- ----- ----------- ---------
Loss for the year and total comprehensive income
for the year (24,291) (19,388)
------------------------------------------------------- ----- ----------- ---------
Loss per share
Basic and diluted for the year 4 (36.17)p (31.41)p
------------------------------------------------------- ----- ----------- ---------
The basic and diluted loss per share are the same as the effect
of share options is anti-dilutive.
Group Statement of Financial Position
At 31 December 2018
Registered no. 08840579
At At
31 December 31 December
2018 2017
GBP000 GBP000
------------------------------------------- ----------- -----------
Assets
Non-current assets
Property, plant and equipment 4,865 5,211
Intangible assets 14,445 14,674
Taxation receivables 137 56
-------------------------------------------- ----------- -----------
19,447 19,941
------------------------------------------- ----------- -----------
Current assets
Inventories 290 253
Trade and other receivables 1,248 3,238
Taxation receivables 5,393 4,308
Short-term investments and cash on deposit 10,174 38,133
Cash and cash equivalents 16,053 11,865
-------------------------------------------- ----------- -----------
33,158 57,797
------------------------------------------- ----------- -----------
Total assets 52,605 77,738
-------------------------------------------- ----------- -----------
Liabilities
Current liabilities
Trade and other payables 5,177 4,982
-------------------------------------------- ----------- -----------
5,177 4,982
------------------------------------------- ----------- -----------
Non-current liabilities
Deferred tax 966 965
Other payables 699 2,005
-------------------------------------------- ----------- -----------
1,665 2,970
------------------------------------------- ----------- -----------
Total liabilities 6,842 7,952
-------------------------------------------- ----------- -----------
Net assets 45,763 69,786
-------------------------------------------- ----------- -----------
Capital and reserves
Share capital 164 164
Share premium 108,296 108,296
Merger reserve 958 958
Translation reserve 67 668
Other reserve (864) (864)
Share-based payments reserve 708 440
Retained earnings (63,566) (39,876)
-------------------------------------------- ----------- -----------
Total equity 45,763 69,786
-------------------------------------------- ----------- -----------
Group Statement of Changes in Equity
For the year ended 31 December 2018
Share-based
Share Share Merger Translation Other payment Retained Total
capital premium reserve reserve reserve reserve earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------------------- ------- ------- ------- ----------- ------- ----------- -------- --------
At 1 January 2017 162 105,909 958 (389) (864) 138 (19,431) 86,483
----------------------------- ------- ------- ------- ----------- ------- ----------- -------- --------
Issue of share capital
(net of expenses) 2 2,387 - - - - - 2,389
----------------------------- ------- ------- ------- ----------- ------- ----------- -------- --------
Total transactions with
owners recognised in equity
for the year 2 2,387 - - - - - 2,389
Loss and total comprehensive
income
for the year - - - 1,057 - - (20,445) (19,388)
Share-based compensation - - - - - 302 - 302
----------------------------- ------- ------- ------- ----------- ------- ----------- -------- --------
At 31 December 2017 164 108,296 958 668 (864) 440 (39,876) 69,786
----------------------------- ------- ------- ------- ----------- ------- ----------- -------- --------
Total transactions with
owners recognised in equity
for the year - - - - - - - -
Loss and total comprehensive
income
for the year - - - (601) - - (23,690) (24,291)
Share-based compensation - - - - - 268 - 268
----------------------------- ------- ------- ------- ----------- ------- ----------- -------- --------
At 31 December 2018 164 108,296 958 67 (864) 708 (63,566) 45,763
----------------------------- ------- ------- ------- ----------- ------- ----------- -------- --------
Group Cash Flow Statement
For the year ended 31 December 2018
31 December 31 December
2018 2017
GBP000 GBP000
--------------------------------------------------- ----------- -----------
Loss after taxation (23,690) (20,445)
Adjustments for:
Depreciation of property, plant and equipment 905 730
Amortisation of intangible assets 296 252
Loss on disposal of property, plant and equipment 1 79
Finance income (282) (482)
Finance expense 348 123
Share-based commitment - 3,474
Share-based compensation 268 302
---------------------------------------------------- ----------- -----------
Cash flows from operations before movements in
working capital (22,154) (15,967)
Changes in working capital:
Increase in inventories (37) (15)
Decrease/(increase) in trade and other receivables 1,894 (588)
Increase in taxation receivables (1,166) (1,009)
(Decrease)/increase in trade and other payables (1,474) 389
---------------------------------------------------- ----------- -----------
Cash outflow from operating activities (22,937) (17,190)
---------------------------------------------------- ----------- -----------
Cash flows from investing activities
Purchases of property, plant and equipment (537) (1,885)
Purchases of software and other intangibles (4) (194)
Acquisition of subsidiaries net of cash acquired (660) -
Interest received 378 509
Monies drawn from deposit 27,959 1,978
---------------------------------------------------- ----------- -----------
Net cash inflow from investing activities 27,136 408
---------------------------------------------------- ----------- -----------
Cash flows from financing activities
Hire purchase payments (10) (14)
Interest paid (1) -
---------------------------------------------------- ----------- -----------
Net cash inflow from financing activities (11) (14)
---------------------------------------------------- ----------- -----------
Increase/(decrease) in cash and cash equivalents 4,188 (16,796)
Cash and cash equivalents at the start of the
year 11,865 28,661
---------------------------------------------------- ----------- -----------
Cash and cash equivalents at the end of the year 16,053 11,865
---------------------------------------------------- ----------- -----------
The cash outflow of GBP660,000 in respect of the acquisition of
subsidiaries net of cash acquired relates to the investment by the
Group in 4D Pharma Leon S.L.U. in 2016. The outflow in the current
reporting period represents the final instrument of deferred
consideration concerning successful GMP certification attained
during the previous reporting period.
Notes to the Financial Information
For the year ended 31 December 2018
1. Basis of preparation
The financial information set out herein does not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006. The financial information for the year ended 31 December 2018
has been extracted from the Company's audited financial statements
which were approved by the Board of Directors on 20 May 2019 and
which, if adopted by the members at the Annual General Meeting,
will be delivered to the Registrar of Companies for England and
Wales.
The financial information for the year ended 31 December 2017
has been extracted from the Company's audited financial statements
which were approved by the Board of Directors on 20 April 2018 and
which have been delivered to the Registrar of Companies for England
and Wales.
The figures for the year ended 31 December 2017 have been
extracted from the statutory accounts for that year which have been
delivered to the Registrar of Companies for England and Wales.
The report of the auditor on these financial statements was
unqualified, did not contain a statement under Section 498(2) or
Section 498(3) of the Companies Act 2006, and did not include a
matter to which the auditors drew attention by way of emphasis
without qualifying their report.
The report of the auditor on the 31 December 2018 financial
statements was unqualified, did not contain a statement under
Section 498(2) or Section 498(3) of the Companies Act 2006 but did
include a matter to which the auditors drew attention by way of
emphasis without qualifying their report relating to the basis of
preparation which is reproduced below:
'Material uncertainty related to going concern
We draw attention to the accounting policy on going concern on
page 39 of the financial statements, which indicates that the cash
flow forecast prepared by the directors estimate that the Group has
sufficient funds to support the current level of activities to the
final quarter of 2019 and therefore needs to raise additional
funds. As stated in the accounting policy on going concern, these
events or conditions, along with the other matters as set forth on
page 27 indicate that a material uncertainty exists that may cast
significant doubt on the Group's ability to continue as a going
concern. Our opinion is not modified in respect of this
matter.'
The information included in this preliminary announcement has
been prepared on a going concern basis under the historical cost
convention, and in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the EU and the
International Financial Reporting Interpretations Committee (IFRIC)
interpretations issued by the International Accounting Standards
Board ("IASB") that are effective or issued and early adopted as at
the date of this financial information and in accordance with the
provisions of the Companies Act 2006.
The information in this preliminary statement has been extracted
from the audited financial statements for the year ended 30
September 2018 and as such, does not contain all the information
required to be disclosed in the financial statements prepared in
accordance with the International Financial Reporting Standards
('IFRS').
The Company is a public limited company incorporated and
domiciled in England & Wales and whose shares are quoted on
AIM, a market operated by The London Stock Exchange. The Company is
incorporated in England and Wales. The registered office is 9 Bond
Court, Leeds LS1 2JZ.
2. Going concern
The Group and parent company are subject to a number of risks
similar to those of other development stage pharmaceutical
companies. These risks include, amongst others, generation of
revenues in due course from the development portfolio and risks
associated with research, development and obtaining regulatory
approvals of its products. Ultimately, the attainment of profitable
operations is dependent on future uncertain events which include
obtaining adequate financing to fulfil the Group's commercial and
development activities and generating a level of revenue to support
the Group's cost structure.
The Directors have prepared detailed financial forecasts and
cash flows looking beyond twelve months from the date of the
approval of these financial statements. In developing these
forecasts, the Directors have made assumptions based upon their
view of the current and future economic conditions that are
expected to prevail over the forecast period. The Directors
estimate that the cash held by the Group together with known
receivables will be sufficient to support the current level of
activities into the fourth quarter of 2019. The Directors are
continuing to explore sources of finance available to the Group and
have a reasonable expectation that they will be able to secure
sufficient cash inflows into the Group to continue its activities
for not less than twelve months from the date of approval of these
accounts. They have therefore prepared the financial statements on
a going concern basis.
Because the additional finance is not committed at the date of
approval of these financial statements, these circumstances
represent an uncertainty as to the Group's ability to continue as a
going concern. Should the Group be unable to obtain further finance
such that the going concern basis of preparation were no longer
appropriate, adjustments would be required including to reduce the
balance sheet values of assets to their recoverable amounts, and to
provide for future liabilities that may arise.
3. Non-recurring costs
As detailed in other payables on 23 August 2017 contingent
consideration became due following the achievement of 4D Pharma
Cork Ltd's initial milestone.
The contingent liability was initially calculated upon the
acquisition based on the discounted probability of the potential
liability at the time of acquisition. With the successful
completion of the first milestone the management had to reassess
the probability of success of subsequent milestones and therefore
increase the contingent liability. This resulted in the
non-recurring cost in the year to 31 December 2018 of GBPNil (31
December 2017: GBP3.474 million).
4. Loss per share
(a) Basic and diluted
Year to Year to
31 December 31
December
2018 2017
GBP000 GBP000
------------------------------------------------------ ----------- ----------
Loss for the year attributable to equity shareholders (23,690) (20,445)
------------------------------------------------------ ----------- ----------
Weighted average number of shares
Ordinary shares in issue 65,493,842 65,084,561
------------------------------------------------------ ----------- ----------
Basic loss per share (pence) (36.17)p (31.41)p
------------------------------------------------------ ----------- ----------
The basic and diluted loss per share are the same as the effect
of share options is anti-dilutive.
(b) Adjusted
Adjusted loss per share is calculated after adjusting for the
effect of non-recurring expenses in relation to the reassessment of
the contingent liability.
Reconciliation of adjusted loss after tax:
Year to Year to
31 December 31
December
2018 2017
GBP000 GBP000
-------------------------------------- ----------- ---------
Reported loss after tax (23,690) (20,445)
Non-recurring costs - 3,474
-------------------------------------- ----------- ---------
Adjusted loss after tax (23,690) (16,971)
-------------------------------------- ----------- ---------
Adjusted basic loss per share (pence) (36.17)p (26.08)p
-------------------------------------- ----------- ---------
5. Related party transactions
Year to Year to
31 December 31
December
2018 2017
Key management compensation GBP000 GBP000
-------------------------------------------------------- ----------- ---------
Executive Directors
Salaries and short-term benefits 204 202
Employer's National Insurance and social security costs 25 25
-------------------------------------------------------- ----------- ---------
229 227
-------------------------------------------------------- ----------- ---------
Fees for services provided as Non-Executive Directors
Salaries and short-term benefits 50 50
Employer's National Insurance and social security costs 5 4
-------------------------------------------------------- ----------- ---------
55 54
-------------------------------------------------------- ----------- ---------
Other key management
Salaries and short-term benefits 1,054 775
Employer's National Insurance and social security costs 175 134
Employer's pension contributions 39 26
Share-based payment charge 268 302
-------------------------------------------------------- ----------- ---------
1,536 1,237
-------------------------------------------------------- ----------- ---------
Group
Transactions with Directors and related entities
During the year Aquarius Equity Partners Limited, an entity
controlled by Duncan Peyton and Dr Alexander Stevenson, charged the
Group GBPNil for consultancy and other office expenses (31 December
2017: GBP2,116). As at 31 December 2018 GBPNil was due to Aquarius
Equity Partners Limited (31 December 2017: GBPNil).
Transactions with key personnel and related entities
During the year summ.it assist llp, an entity in which Stephen
Dunbar is a partner, recharged the Group GBP1,337 for IT equipment
and software (31 December 2017: GBP3,593), GBP90 for IT support (31
December 2017: GBP377) and GBP20,211 for accounting and bookkeeping
services (31 December 2017: GBP65,939); there were no staff
recruitment fees for the year (31 December 2017: GBP12,500) but
GBP2,391 was charged for other costs (31 December 2017: GBP3,718).
At the year end GBP2,392 was due to summ.it assist llp (31 December
2017: GBP5,065).
Biomar Microbial Technologies, an entity in which Antonio
Fernandez is a director, charged rent and building service costs to
the Group of GBP17,756 (31 December 2017: GBP302,487) and the Group
charged Biomar GBP32,981 for services (31 December 2017: GBPNil).
At the year end GBP3,557 was due from Biomar Microbial Technologies
(31 December 2017: GBP5,469 was due to Biomar Microbial
Technologies).
All related party transactions during the current and previous
year were considered to be at arm's length.
6. Report and accounts
A copy of the Annual Report and Accounts will be sent to all
shareholders with notice of the Annual General Meeting, and will be
made available on the Company's website, www.4dpharmaplc.com, by 28
May 2019.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR BRGDUDUDBGCG
(END) Dow Jones Newswires
May 21, 2019 02:01 ET (06:01 GMT)
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