Sareum losses widen as clinical trials continue

9th Oct 2023 15:06

(Sharecast News) - Biotechnology company Sareum Holdings reported a loss of £3.2m after tax in its final results on Monday, widening from last year's £2.2m due to heightened expenses from initiating clinical studies with SDC-1801, despite aligning with market anticipations.

The AIM-traded firm said that at year-end on 30 June, its cash position rested at £1m, contrasting with £4.3m a year prior.

A pivotal agreement with RiverFort Global Opportunities was solidified after the period ended on 3 August, with a £5m equity prepayment facility, under which an initial £2m was received by Sareum the following day.

That financial bolstering, accompanied by expected tax incentives of £1.6m, would be channelled to support the ongoing phase 1a and 1b clinical development of the lead candidate SDC-1801, aiming to amplify shareholder value and ensure general working capital into the fourth quarter of 2024.

On the operational front, Sareum said SDC-1801 - a TYK2/JAK1 inhibitor under development as a prospective therapeutic for autoimmune diseases - had successfully navigated the initial phases of its clinical trial, with a specific focus on managing psoriasis.

Launched in May, the phase 1a trial in Melbourne, Australia, progressed to the multiple ascending dose escalation phase in September.

While complete safety data from the phase 1a trial were anticipated in the first half of 2024, pending satisfactory results and other contingencies, plans to initiate a phase 1b clinical study involving up to 24 psoriasis patients were underway, aiming to conclude before the end of 2024.

Moreover, the first patent for SDC-1801 had been granted by the China National Intellectual Property Administration, ensuring the compound's protected use in medical applications addressing inflammatory or immune disorders.

At the same time, Sareum said it was driving forward with translational studies for its cancer immunotherapy candidate, SDC-1802, to pinpoint the optimal application for cancer before finalising toxicology and manufacturing studies.

The United States Patent and Trademark Office (USPTO) granted a fresh patent for SDC-1802, extending its protected use beyond immuno-oncology and treating autoimmune diseases.

Furthermore, Sareum reported developments concerning SRA737, a cancer therapeutic, noting that GSK subsidiary Sierra Oncology completed the return of clinical study reports and associated data to the CRT Pioneer Fund (CPF).

CPF is spearheading the assessment of further development possibilities for SRA737, with more updates to be disseminated promptly.

"We are increasingly optimistic about the potential of TYK2/JAK1 inhibitors to address autoimmune disease and we remain fully focussed on progressing our lead programme, SDC-1801, through the ongoing phase one study underway in Australia," said chief executive officer Dr Tim Mitchell.

"The funds raised as part of the RiverFort facility provide a clear runway allowing us to focus on advancing this promising asset through phase one studies, and we look forward to having full safety data in the first half of 2024, potentially allowing us to move towards an important phase 1b study in psoriasis patients which will focus more on efficacy.

"With our secured financing and anticipated resources, we believe we're well positioned to complete the ongoing phase 1a and subsequently advance into the phase 1b study."

Dr Mitchell said the firm's progress, alongside growing scientific and commercial validation in the TYK2/JAK1 space, supported its continued confidence in the asset.

"We're also optimistic about the opportunity for SDC-1802 in immuno-oncology and continue to believe that SRA737 has great potential for the treatment of cancer."

At 1353 BST, shares in Sareum Holdings were down 4.19% at 76.65p.

Reporting by Josh White for Sharecast.com.