Final Results

RNS Number : 7561G

Immupharma PLC

01 June 2017

 



                                                                                                                               1 JUNE 2017

ImmuPharma PLC

("ImmuPharma" or the "Company")

FINAL RESULTS ANNOUNCEMENT
for the twelve months ended 31 December 2016

ImmuPharma PLC (LSE:IMM), ("ImmuPharma" or the "Company"), the specialist drug discovery and development company, is pleased to announce its final results for the twelve months ended 31 December 2016 (the "Period").

Key Highlights (including post Period review)

·  Lupuzor^™: is the Company's lead program for the potential breakthrough compound for lupus a potential life threatening auto-immune disease

o  Pivotal Phase III trial is progressing on track with development partner Simbec-Orion

§ Total 11 sites active in US with 70 patients

§ Five European countries with 81 lupus patients taking part in trial: Czech Republic, France, Germany, Hungary and Poland

§ One Mauritius site with 49 lupus patients included in trial

o  Most recent update on progress of Lupuzor™ trial announced on 17 May 2017

o  Top line results anticipated in Q1 2018

·  Prof Sylviane Muller, inventor of P140, held a number of key symposiums hosted in London, 8-9 June 2016, where she presented on the unique 'Mechanism of Action' of P140, the scientific name of Lupuzor^TM, also known by its chemical name 'Forigerimod'.

o  Prof Muller provided further evidence of the role the P140 molecule can take in the potential treatment of other autoimmune diseases, including those which have Orphan indications

·  Three successful, value accretive fundraisings - to support Lupuzor™'s Phase III trial and working capital requirements

o  £8.4 million (gross) fundraising completed in February and March 2016 at 26 pence per share

o  £1 million (gross) in October 2016 associated with a £3.5 million Vendor Placing at 35 pence per share

o  £4.1 million (gross) fundraising in March 2017 at 52 pence per share

o  All three fundraisings were supported by existing long term shareholders together with the addition of new blue chip institutions

o  Advance assurance received from HMRC for VCT and EIS qualifying status

· Wider program developments

o  A number of options are under review to further progress ImmuPharma's cancer Nucant program, IPP-204106 following a Phase I/IIa dose-finding adaptive study which showed that the maximum tolerated dose was 9 mg/kg, the primary objective of the study

o  Cancer Research, the prestigious medical journal of the American Association for Cancer Research ("AACR"), has published a fundamental scientific paper highlighting the unique mechanism of action of IPP-204106 (announced 16 November 2016)

o  ImmuPharma and CNRS have filed a series of new co-owned patents controlling the Company's peptide platform technology URELIX, with Type II diabetes and NASH (Non-Alcoholic-Steato-Hepatitis) being the first therapeutic areas to be targeted.  This technology allows inter alia outstanding properties in terms of duration of action.

· Northland Capital Partners appointed as sole broker and NOMAD

· Stable financial performance over the Period, in line with market expectations

o  Net assets of £5.5 million (31 December 2015:  £1.7 million).

o  Loss for the period of £5.3 million (31 December 2015:  £3.9 million)

§ Research and development expenses of £5.3 million (31 December 2015: £3 million)

o  Basic and diluted loss per share of 4.54p (31 December 2015: 4.40p)

·      Prof. Sylviane Muller - Finalist for the European Inventor Award 2017: 'Invention' Category "Treating Lupus by Targeting T-cells"

§ Forthcoming 'Investor' Event on 30 June 2017

o  ImmuPharma will be hosting an Investor Presentation and luncheon immediately following the Company's Annual General Meeting, currently scheduled for Friday 30 June, in the City of London.  Further details will be disclosed when ImmuPharma's Report and Accounts are posted to shareholders in the next week.  Please contact Lisa Baderoon at [e-mail] if you would like to attend this event.

Commenting on the statement and outlook Tim McCarthy, Chairman, said:

"We have achieved a number of significant milestones during this period including three successful and share price accretive fund raisings.

"We are delighted by the continued progress of our Lupuzor^TM Phase III study having recently announced that all 200 patients have passed the three month stage, 28 patients have passed the full 12 months of the study and over 80% of patients having had exposure to Lupuzor^TM for over six months, compared to our Phase IIb three month study, whilst still maintaining an excellent safety profile.  We remain on track to report top line results in Q1 2018.

"The Board would like to thank its shareholders both long-standing and new for their support, as well as its staff, corporate and scientific advisors and the CNRS for their ongoing collaboration."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014. ("MAR")

-Ends-

For further information please contact: ImmuPharma plc (www.immupharma.org) + 44 (0) 20 7152 4080 Tim McCarthy, Chairman Lisa Baderoon, Head of Investor Relations Twitter: @immupharma + 44 (0) 7721 413496 Northland Capital Partners Limited (Joint Broker) Patrick Claridge, David Hignell, Corporate Finance Rob Rees, Corporate Broking [phone]

ImmuPharma plc

Chairman's Report

2016 was a year of significant progress for ImmuPharma.  Our lead program, Lupuzor^™, a potential breakthrough treatment for the auto-immune disease lupus, saw the dosing of the first patients in the US and Europe in the early part of the year.  In December, we announced, on track, completion of the full 200 patients being recruited into the trial.  During the year, we also successfully completed two fund raising rounds, generating a total of £9.4 million before expenses.  This was followed by a further successful share placement completed in March 2017 that raised an additional £4.1 million before expenses.  The three fundraisings were all supported by existing long term shareholders together with the addition of new blue chip institutions onto our share register.

Lupuzor^™: progress through 2016

Following the finalisation of an agreement in 2015 to work together, Simbec-Orion, an international clinical research organisation, has been undertaking the crucial Phase III clinical trial for Lupuzor^™.  Simbec-Orion specialises in Rare & Orphan conditions and has previous direct experience in lupus trials. This is a pivotal study designed to demonstrate the safety and efficacy of Lupuzor^™ and is the last step prior to filing for approval.  In addition, following an approach from the government of Mauritius, we have added a further site for the Lupuzor^™ Phase III clinical trial in Mauritius with the help of CAP Research, a clinical research organisation.

Lupuzor^™ received approval from the US Food and Drug Administration (FDA) to start Phase III with a Special Protocol Assessment (SPA) and Fast Track designation, perceived as the 'Gold Standard' from the FDA. Under the SPA, the necessary number of patients for the Phase III programme is much lower than other lupus development candidates in previous clinical trials and underpins the significant efficacy and safety profile shown by Lupuzor^™ in its clinical development program to date.  Importantly, this means that the total cost and time to completion of Phase III is significantly reduced.

Lupuzor™ Phase III Trial

The Phase III trial is a double-blind, randomised, placebo-controlled trial. The study involves patients being dosed for one year, receiving 0.2mg once every month subcutaneously. Significant progress was made toward completion of the trial.  293 patients were screened illustrating the demand from physicians for a new, safe and effective treatment for lupus.  Of these, the required 200 patients have been successfully recruited and randomised (dosed).  Patients are participating in the trial in 7 countries across 28 sites. 

In the United States the trial has been approved by a major Central Institutional Review Board (IRB) which is allowing several sites to participate through a single IRB. In Europe the study is approved through the centralised Voluntary Harmonisation Procedure (VHP).  The EU VHP has confirmed that the study will take place in  Germany, France, Czech Republic, Hungary and Poland.

In September 2016, ImmuPharma announced that it had been requested to open a new site in Mauritius.  CAP Research, a leading clinical research organisation in Mauritius, is leading the trial and 49 patients have been recruited into the trial.  Mauritius, with a population of around 1.2 million, has a high proportion of lupus patients, with approximately 300 currently diagnosed lupus patients.

Top line data is expected during Q1 2018.  Progress of the trial can be seen at: www.clinicaltrials.gov (search term 'lupuzor').

Lupus Market

There are an estimated five million people globally suffering from lupus, with approximately 1.5 million patients in the US, Europe and Japan (Source: Lupus Foundation of America). Current 'standard of care' treatments, including steroids and immunosuppressants, can potentially have either serious side effects for patients or limited effectiveness, with over 60 per cent of patients not adequately treated. GSK's Benlysta is the first lupus drug approved in over 50 years and paves the path to market for Lupuzor^™. Based on conservative estimates, and taking into account that Benlysta is priced currently at approximately US$30,000 per patient per year, Lupuzor^™ would be entering a market with the potential for multi-billion dollar sales.

Lupuzor^™ has the potential to be a novel specific first-line drug therapy for the treatment of lupus by specifically modulating the immune system and halting disease progression in a substantial proportion of patients. Lupuzor^™ has a unique mechanism of action that modulates the activity of CD4 T-cells which are involved in the cell-mediated immune response which leads to the lupus disease. Lupuzor^™, taken over the long term, as indicated in earlier stage clinical trials, has the potential to prevent the progression of lupus rather than just treating its symptoms, with the rest of the immune system retaining the ability to work normally.

There will be a number of routes to market for Lupuzor^™ which could include: a global licensing deal; ImmuPharma partnering with regional distributors, globally or an outright sale of Lupuzor^™ or the Company. The prime objective of any strategy would be to maximise shareholder return. 

Centre National de la Recherché Scientifique (CNRS)

ImmuPharma continues to have important collaboration arrangements with the Centre National de la Recherché Scientifique (CNRS), the French National Council for Scientific Research and the largest basic research organisation in Europe, relating to the therapeutic use of peptides and peptide derivatives. This is where Lupuzor^™ was invented by Prof. Sylviane Muller, Research Director at CNRS. This successful and longstanding relationship plays an important role in the progress of ImmuPharma's development pipeline.

Pipeline Overview

Forigerimod / P140 Autoimmune Platform - Lupuzor^TM

Lupuzor^™, is also known by its chemical name 'Forigerimod' or P140. ImmuPharma in conjunction with the CNRS are working hard on expanding the P140 auto immune pipeline, as demonstrated by Lupuzor^™'s strong efficacy and safety profile and by its mechanism of action.

A new patent has been filed (co-owned with CNRS) to cover other auto immune indications, outside of lupus, some of which have the potential for Orphan Drug designation. Further preclinical work continues with the objective of further indications moving into the clinic in due course.

Nucant Platform

Our Cancer Nucant program, IPP-204106, is focused on combination therapy approaches. We previously announced that the Phase I/IIa dose-finding adaptive study where the Nucant was associated with chondroitin sulphate, demonstrated that the maximum tolerated dose was 9 mg/kg.  This was the primary objective of the study.  ImmuPharma is now reviewing a number of options to further progress this program.  A grant was awarded by the EU to different EU partners (€7 million total with €430k awarded to ImmuPharma) to develop the Nucants in combination with cytotoxic drugs linked to a solid support.  The concept has been validated in pre-clinical studies, and a Phase II trial is being planned.

The Group has also been awarded grants to investigate its use in age-related macular degeneration, diabetic retinopathy and other ophthalmological indications.

In November 2016, we announced that Cancer Research, the prestigious medical journal of the American Association for Cancer Research ("AACR"), published a fundamental scientific paper highlighting the unique mechanism of action of IPP-204106.  The publication was entitled "Nucleolin targeting impairs the progression of pancreatic cancer and promotes the normalisation of tumour vasculature" and was authored by a number of researchers working within ImmuPharma on the Group's cancer program. 

The key findings of the study for this compound (referred to in the paper as N6L) were:

·      Nucleolin inhibition is a new anti-cancer therapeutic strategy that has been shown to normalise tumour vasculature, have a cytotoxic effect on its own, and to allow a selective targeting of tumour cells.

·      As a result, it has the potential to improve dramatically the delivery and efficacy of existing chemotherapeutic drugs such as gemcitabine, and in particular, for difficult-to-treat tumours such as pancreatic cancer and glioblastoma.

Peptide Platform

ImmuPharma's subsidiary 'Ureka' has also initiated the development of a novel and innovative peptide technology platform through the collaboration with CNRS, thereby gaining access to pioneering research centred on novel peptide drugs at the University of Bordeaux and the Institut Européen de Chimie et Biologie (IECB). Jointly, ImmuPharma and CNRS have filed a series of new co-owned patents controlling this breakthrough peptide technology. The first therapeutic area being targeted is diabetes with glucagon-like peptide -1 agonists, a class of drugs for the treatment of diabetes, as well as initiating the development of novel peptides as glucagon antagonists - one of the novel approaches to treat Type I and Type II diabetes.  These peptides could also have a beneficial effect in the treatment of NASH (Non-Alcoholic Steato Hepatitis) for which very few treatment options exist.  In 2014 and 2015, the Group received non-refundable grant funding of approximately €600,000 to develop this technology with application to peptides used to treat diabetes as well as to peptides allowing the control of protein/protein interactions (cancer).

£9.4 million Fund Raising and EIS/VCT Status: 

In February/March 2016, we were delighted to complete a £8.4 million funding round before expenses.  In October 2016, the Company raised a total of £1 million before expenses by way of an issue of 2,857,143 new ordinary shares of 10p each at a placing price of 35p per share.  The total funds raised by the two placings was £9.4 million before expenses.  Please refer to the Financial Review for further details.  The funds raised are being used to principally progress the pivotal Phase III trial for Lupuzor^™ as well as providing working capital requirements into 2018.

As part of the fundraising exercise, ImmuPharma also received confirmation of advance assurance from HM Revenue and Customs that it is a qualifying holding for the purposes of the Venture Capital Trust rules ("VCT Advance Assurance") and a qualifying company for the purposes of the Enterprise Investment Scheme ("EIS Advance Assurance"). These assurances were important for attracting a significant proportion of new shareholders.

Current Activities and Outlook

As a Board, we are excited by ImmuPharma's future potential. ImmuPharma is focused on ensuring the successful development of the late stage clinical development of Lupuzor^™ through its pivotal Phase III trial, and I look forward to providing shareholders with further updates as the trial progresses. We are now also beginning to have dialogue with a number of Lupus Patient Groups, both in the UK and the USA, and we will increase our efforts within this important and powerful community throughout this year and beyond.

The key objective for the Group is the completion of the treatment of the 200 lupus patients with top line results on track to be announced during Q1 2018.

ImmuPharma will also progress its other earlier stage pipeline candidates whilst exploring other opportunities around Lupuzor^™'s mechanism of action and its applicability through its P140 platform to expand into other autoimmune conditions.

The Board would like to thank its shareholders, both long standing and new for their support as well as its staff, corporate and scientific advisors including Simbec-Orion and the CNRS for their ongoing collaboration.

Tim McCarthy                                    

Non-Executive Chairman                   

ImmuPharma plc

Financial Review

2016 was a year focused on strengthening ImmuPharma's financial position and progressing our lead programme, Lupuzor^™, and its pivotal Phase III trial.  Two successful placings were completed in 2016; the first, completed in February/March 2016, was a £8.4 million placing and subscription before expenses, and the second was completed in October 2016 raising a further £1 million before expenses as part of a £3.5 million vendor placing for a total of £9.4 million before expenses.  In addition, in March 2017, we completed a successful third funding round of £4.1 million before expenses.

Income Statement

The overall loss for the year ended 31 December 2016 was £5.3 million, up from £3.9 million for the year ended 31 December 2015.  The increase in overall loss was mainly attributable to increased expenditure on the Group's Lupuzor^™ program.  Research and development expenditure was up to £5.3 million from £2.9 million in 2015.  Administrative expenses were down to £1.5 million from £1.6 million in the year ended 31 December 2015.  Finance income was £297,809 for 2016.  This contrasts with finance income of £15,843 for 2015 including a gain on foreign exchange of £4,302. The main increase in finance income is due to a gain in fair value on the derivative financial asset of £296,087. Total comprehensive loss for the year was £5 million which was up from £4 million in 2015.

Statement of Financial Position

Cash and cash equivalents at 31 December 2016 amounted to £1.9 million (2015: £0.8 million).  Financial borrowings were £0.36 million (2015:  £0.44 million).  This balance is primarily the conditional advance from the French Government for use in the development of our cancer program.  No interest is payable.  In February and March 2016, ImmuPharma successfully completed a share placing and subscription, raising £8.4 million before expenses. 851,064 fee shares were also issued at nil proceeds.  Two further placings were completed.  A £1 million placing before expenses was completed in October 2016.  As a subsequent event, the Company completed a £4.1 million placing before expenses in March 2017. Further details are presented below. In addition, a £50 million equity finance facility remains available with Darwin Strategic Limited.

Results

The Group recorded a loss for the year of £5.3 million (2015:  £3.9 million).  Basic and diluted loss per share was 4.54p (2015:  4.40p).  In accordance with the Group's loss making position no dividend is proposed.

March 2016 £8.4 million Placing and Subscription

Between February and March of 2016 ImmuPharma successfully secured £8.4 million before expenses by way of the Placing of 16,137,479 new ordinary shares of 10p each in the Company at the Placing Price of 26p per share combined with a subscription of 17,021,277 Subscription Shares by Lanstead Capital ("Lanstead") at the Issue Price of 26p per share. The Subscription was completed pursuant to a related Sharing Agreement with Lanstead, the terms of which were provided in a Circular to shareholders in February 2016 and which can be viewed on the Company's website (www.immupharma.org/aim-rule-26/circulars). The terms of the Placing and Subscription were approved by shareholders at a General Meeting on 22 February 2016. The net proceeds of the Placing and Subscription received by the Company are being used to fund the pivotal Phase III clinical trial of Lupuzor^™, the Company's lead programme for the potential breakthrough compound for lupus. Simbec-Orion, a full service international Clinical Research Organisation ("CRO") specialising in rare and orphan conditions and which has previous direct experience of lupus trials, is conducting the trial.

VCT & EIS Assurance

As part of the fundraising exercise, ImmuPharma also received confirmation of advance assurance from HM Revenue and Customs that it is a qualifying holding for the purposes of the Venture Capital Trust rules ("VCT Advance Assurance") and a qualifying company for the purposes of the Enterprise Investment Scheme ("EIS Advance Assurance"). These assurances were important for attracting a significant proportion of new shareholders into the recent fundraising.

Lanstead Subscription and Sharing Agreements

As part of the placement completed in February 2016, the Company issued 17,021,277 new Ordinary Shares to Lanstead Capital L.P. ("Lanstead") at a price of 26p per Ordinary Share for an aggregate subscription price of £4,425,532 before expenses.  A portion of the Subscription proceeds (£663,830) were retained by ImmuPharma and the remainder (£3,761,702) was pledged under a Sharing Agreement under which Lanstead made and will continue to make, subject to the terms and conditions of that Sharing Agreement, monthly settlements to the Company that are subject to adjustment upwards or downwards depending on the Company's share price performance. 

ImmuPharma received seven monthly settlements during 2016.  As part of a separate agreement between the Company and Lanstead concluded at the time of the Vendor Placing (see description below), the settlement received in October 2016 included an acceleration of the next six monthly settlements.  In effect, seven monthly settlements were rolled into the October 2016 amount.  Monthly settlements, under the Sharing Agreement will continue in May 2017 and complete in September 2017.  Finance gain or loss is calculated on the difference between the monthly settlements received versus the benchmark monthly amount specified in the terms of the Sharing Agreement. 

At the end of the accounting period, the amount receivable is restated to fair value based upon a discounted cash flow calculation using a 10% cost of capital. 

October 2016 £1 million Vendor Placing and New Share Placing

On 21 October 2016, the Company placed 7,100,000 existing ordinary shares of 10p each held by Lanstead Capital with new and existing institutional investors by way of a Vendor Placing and raised a total of £1 million before expenses by way of an issue of 2,857,143 new ordinary shares of 10p each, which are EIS and VCT qualifying.  Both the Vendor Placing and the New Share Placing were executed at 35p.  The Company undertook this Vendor Placing and New Share Placing to satisfy new institutional demand and to broaden its share register.  It also strengthens ImmuPharma's financial position to support its general working capital requirements.  The placees included Dr Robert Zimmer, ImmuPharma's President and Chief Scientific Officer, who subscribed for 1,057,143 shares on top of the 1,230,769 shares he subscribed for earlier in the year as part of the February/March 2016 placing.  These details are included in the table below summarising Directors Dealings during the period.

March 2017 £4.1 million New Share Placing:  Post Period

On 10 March 2017, the Company announced the completion of a placing of 7,884,623 new ordinary shares of 10p each at a placing price of 52p raising a total of £4.1 million before expenses.  The shares are EIS and VCT qualifying.  Major existing and new institutional investors participated in the New Share Placing.  The Company raised the funds in order to further strengthen the Company's Statement of Financial Position as negotiations continue with potential partners for Lupuzor^™ and to support further investment in ImmuPharma's earlier stage portfolio.

Total Voting Rights

Following the admission of the shares placed in the above 2016 placings to trading on AIM, the Company has a total of 124,638,362 ordinary shares in issue at 31 December 2016 with each share carrying the right of one vote.  Following the post period placing completed in March 2017, the Company has 132,522,985 ordinary shares in issue with each share carrying the right of one vote.

Directors' Dealings

All the Directors of the Company participated in the February/March 2016 Placing and Dr Robert Zimmer further participated in the October 2016 placing.  The table below summarises the Directors' holdings as at 31 May 2017.

Director	Number of Ordinary Shares held post subscription at 31 May 2017	% of Share Capital
Robert Zimmer	25,344,514	19.12%
Tim McCarthy	38,462	0.03%
Dimitri Dimitriou	3,567,430	2.69%
Franco Di Muzio	99,412	0.08%
Stephane Mery	21,490	0.02%

The Directors together hold 29,071,308 Ordinary Shares, representing 21.94 per cent of the Enlarged Share Capital.

Treasury Policy

The policy continues to be that surplus funds of the Group are held in interest-bearing bank accounts on short or medium maturities, until commitments to future expenditure are made, when adequate funds are released to enable future expenditure to be incurred.  The Group's Treasury Policy and controls are straightforward and approved by the Board.

Financial Strategy

The overall strategy is to maintain a tight control over cash resources whilst enabling continued progress of the Company's pivotal Phase III Lupuzor^™ trial through to top line results expected by the first quarter of 2018 and the progression of its other earlier stage pipeline candidates where cash reserves permit.

Tracy Weimar

Vice President, Operations and Finance

ImmuPharma plc

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2016

	Notes	Year ended 31 December 2016		Year ended 31 December 2015
		£		£
Continuing operations
Revenue		164,784		76,407
Research and development expenses		(5,267,087)		(2,993,717)
Administrative expenses		(1,486,858)		(1,645,799)
Operating loss		(6,589,161)		(4,563,109)
Finance costs		(23,085)		(1,208)
Finance income		297,809		15,843
Loss before taxation		(6,314,437)		(4,548,474)
Tax		990,421		650,977
Loss for the year		(5,324,016)		(3,897,497)
Attributable to:
Equity holders of the parent company		(5,324,016)		(3,897,497)
Loss per ordinary share
Basic	2	(4.54p)		(4.40p)
Diluted	2	(4.54p)		(4.40p)

ImmuPharma plc

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2016

	Year ended 31 December 2016		Year ended 31 December 2015
	£		£
Loss for the financial year	(5,324,016)		(3,897,497)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	317,177		(117,478)
Other comprehensive income/(loss) for the year, net of tax	317,177		(117,478)
Total comprehensive loss for the year	(5,006,839)		(4,014,975)

ImmuPharma plc

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2016

		31 December 2016		31 December 2015
	Notes	£		£
Non-current assets
Intangible assets		511,088		522,462
Property, plant and equipment		231,901		280,127
Total non-current assets		742,989		802,589
Current assets
Trade and other receivables		2,535,265		1,577,091
Derivative financial asset		1,554,866		-
Cash and cash equivalents		1,876,718		833,388
Total current assets		5,966,849		2,410,479
Current liabilities
Financial liabilities - borrowings		143,109		163,070
Trade and other payables		786,191		1,078,640
Provisions		15,050		-
Total current liabilities		944,350		1,241,710
Net current assets		5,022,499		1,168,769
Non-current liabilities
Financial liabilities - borrowings		219,445		280,951
Net assets		5,546,043		1,690,407
EQUITY
Ordinary shares		12,463,836		8,862,246
Share premium		15,678,054		10,490,920
Merger reserve		106,148		106,148
Other reserves		(3,373,745)		(3,764,673)
Retained earnings		(19,328,250)		(14,004,234)
Total equity		5,546,043		1,690,407

ImmuPharma plc

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2016

		Share capital		Share premium		Merger reserve		Other reserves - Acquisition reserve		Other reserves - Translation reserve		Other reserves- Equity shares to be issued		Retained earnings		Total equity
		£		£		£		£		£		£		£		£
	At 1 January 2015	8,862,246		10,490,920		106,148		(3,541,203)		(1,809,372)		1,703,380		(10,106,737)		5,705,382
	Loss for the financial year	-		-		-		-		-		-		(3,897,497)		(3,897,497)
	Exchange differences on translation of foreign operations	-		-		-		-		(117,478)		-		-		(117,478)
	At 31 December 2015	8,862,246		10,490,920		106,148		(3,541,203)		(1,926,850)		1,703,380		(14,004,234)		1,690,407
	Loss for the financial year	-		-		-		-		-		-		(5,324,016)		(5,324,016)
	Exchange differences on translation of foreign operations	-		-		-		-		317,177		-		-		317,177
	Share based payments	-		-		-		-		-		73,751		-		73,751
	New issue of equity capital	3,601,590		5,798,410		-		-		-		-		-		9,400,000
	Costs of new issue of equity capital	-		(611,276)		-		-		-		-		-		(611,276)
	At 31 December 2016	12,463,836		15,678,054		106,148		(3,541,203)		(1,609,673)		1,777,131		(19,328,250)		5,546,043
	Attributable to:-
	Equity holders of the parent company	12,463,836		15,678,054		106,148		(3,541,203)		(1,609,673)		1,777,131		(19,328,250)		5,546,043

ImmuPharma plc

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2016

	Notes			Year ended 31 December 2016		Year ended 31 December 2015
				£		£
Cash flows from operating activities
Cash used in operations	3			(7,191,318)		(4,582,411)
Tax received				707,135		435,261
Interest paid				(1,917)		(1,208)
Net cash used in operating activities				(6,486,100)		(4,148,358)
Investing activities
Purchase of property, plant and equipment				(4,731)		(20,761)
Interest received				1,722		11,541
Net cash used in investing activities				(3,009)		(9,220)
Financing activities
(Decrease)/increase in bank overdraft				(1,091)		879
Loan repayments				(143,482)		(333,135)
Loan received				-		22,130
Settlements from Sharing Agreement				2,690,451		-
Gross proceeds from issue of new share capital				9,400,000		-
Share capital issue costs				(611,276)		-
Funds deferred per Sharing Agreement				(3,949,230)		-
Net cash generated from/(used in) financing activities				7,385,372		(310,126)
Net increase/(decrease) in cash and cash equivalents				896,263		(4,467,704)
Cash and cash equivalents at beginning of year				833,388		5,424,033
Effects of exchange rates on cash and cash equivalents				147,067		(122,941)
Cash and cash equivalents at end of year				1,876,718		833,388

ImmuPharma plc

 

1

BASIS OF PREPARATION                                                                                                                     The financial information set out in this announcement does not comprise the Group's statutory accounts as defined in section 434 of the Companies Act 2006 for the year ended 31 December 2016 or 31 December 2015. The financial information has been extracted from the statutory accounts for the years ended 31 December 2016 and 31 December 2015.  The auditors reported on those accounts; their reports were unqualified and did not contain a statement under either Section 498(2) or Section 498(3) of the Companies Act 2006 in respect of the years ended 31 December 2016 and 31 December 2015 and did not include references to any matters to which the auditor drew attention by way of emphasis. The Group's statutory accounts for the year ended 31 December 2015 have been delivered to the Registrar of Companies, whereas those for the year ended 31 December 2016 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The accounting policies are consistent with those applied in the preparation of the interim results for the period ended 30 June 2016 and the statutory accounts for the year ended 31 December 2015, which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). The financial information is for the year ended 31 December 2016 and the comparatives are for the year ended 31 December 2015. The Group's statutory accounts incorporate the financial statements of ImmuPharma plc and other entities controlled by the company ("the subsidiaries").  Control is achieved where the company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

 

2	LOSS PER SHARE - Group	Year ended 31 December 2016		Year ended 31 December 2015
		£		£
	Loss
	Loss for the purposes of basic loss per share being net loss after tax attributable to equity shareholders	(5,324,016)		(3,897,497)
	Number of shares
	Weighted average number of ordinary shares for the purposes of basic earnings per share	117,340,467		88,622,463
	Basic loss per share	(4.54)p		(4.40)p
	Diluted loss per share	(4.54)p		(4.40)p
	The Group has granted share options in respect of equity shares to be issued, the details of which are disclosed in note 20 of the full set of accounts. There is no difference between basic loss per share and diluted loss per share as the share options are anti-dilutive.

3	CASH USED IN OPERATIONS
										Group 31 December 2016			Group 31 December 2015
										£			£
	Operating loss									(6,589,161)			(4,563,109)
	Depreciation and amortisation									121,337			121,748
	Share-based payments									73,751			-
	(Increase)/decrease in trade and other receivables									(387,713)			(674,440)
	(Decrease)/increase in trade and other payables									(403,414)			552,556
	Increase/(decrease) in provisions									15,050			(23,468)
	Gain/(loss) on foreign exchange									(21,168)			4,302
	Cash used in operations									(7,191,318)			(4,582,411)

4

SUBSEQUENT EVENTS                                                                                                                           On 10 March 2017, the Company announced the completion of a placing of 7,884,623 new ordinary shares of 10p each at a placing price of 52p raising a total of £4.1 million before expenses.  The shares are EIS and VCT qualifying.  Major existing and new institutional investors have participated in the New Share Placing.  The Company has raised the funds in order to further strengthen the Company's Statement of Financial Position as negotiations continue with potential partners for Lupuzor™ and to support further investment in ImmuPharma's earlier stage portfolio.  Following the Admission of the shares placed, the Company has a total of 132,522,985 ordinary shares in issue with each share carrying the right of one vote. In March 2017, the Company announced the implementation of a new long term incentive plan to replace the previous Company Stock Option Plan that expired in 2016.

 

END

 

 

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