Aortech's loss widens amid transformation to medical device developer

22nd Nov 2018 12:19

(Sharecast News) - Aortech International reported that its loss widened as the company transitions into the medical device development market.The polymer technology outfit said that for the six-month period ended 30 September losses before tax increased by 146% to £0.2m compared to the same period last year, as administrative expenses grew by 87% to £0.3m.The jump in administrative expenses was anticipated and is a result of Aortech's efforts to transform into a medical device development business, with the company having hired regulatory consultants and other team members to work on the development of new heart valve and textile products.Bill Brown, chairman of Aortech, said: "We have made considerable progress over the first half of the year against our strategic goals as evidenced by the successful fundraising and partnership agreements entered into."The successful fundraising resulted in net proceeds received after expenses of £2.5m from the issue of 9,128,913 new ordinary shares of 5 pence each.Revenue crept up by 13% to £0.2m as technology licensing in the US continued to contribute to growth, while cash and cash equivalents ended the period at £2.6m, up from £0.2m at the same point last year."We look to the future with confidence reinforced by the quality of the team assembled, the quality of the core platform technology, the market opportunities in our chosen product areas and the potential to bring these ground-breaking products to market," said Brown.Aortech's shares were down 7.14% at 52.00p at 1229 GMT.