Half-year Report

RNS Number : 4440J

Nuformix PLC

13 December 2022

 

Nuformix plc

("Nuformix", the "Company" or the "Group")

Half Year Report

13 December 2022:  Nuformix plc (LSE: NFX), a pharmaceutical development company targeting unmet medical needs in fibrosis and oncology via drug repurposing, announces its unaudited results for the six months ended 30 September 2022.

Operational highlights (including post-period end)

· Initial pre-clinical inhalation studies undertaken with NXP002 demonstrated:

o  the proprietary novel form can be delivered in-vivo by a range of nebulisers at the optimum particle size for delivery to the deep lung;

o  very high doses appear to be well-tolerated in the lung; and

o  an in-vivo inhalation dose response was observed for both inflammatory and fibrotic biomarkers associated with disease progression.

· Subsequently, the Companyinitiated studies in a state-of-the-art 3D human Idiopathic Pulmonary Fibrosis (" IPF") lung tissue, using a disease and species relevant model, which will focus firstly on the anti- inflammatory and anti-fibrotic action of NXP002 in combination with current standards-of-care and secondly investigate duration of action.

· The Company presented NXP002 for the first time to the global IPF medical and pharmaceutical specialist community at the ERS Congress in Barcelona.

· A programme of work to progress NXP004 was initiated:

o  scale-up of lead cocrystal production processes; and

o  in-vitro dissolution comparison of lead co-crystals to Lynparza® (commercially available olaparib).

· Oxilio, the licensee of NXP001, is investigating aprepitant for the potential new treatment of cancer indications. Continuing efforts are being made with Quotient Sciences to explore the formulation development options of NXP001 to understand the feasibility of achieving bioavailability and a dosing regime adequate for treatment of this indication. This work, which is contingent on the manufacturing and supply of additional cocrystal material for testing and evaluation, is underway.

· Leadership team enhanced with the appointments of:

o  Dr Julian Gilbert as Non-Executive Chairman, who brings significant pharma and biotech business development, corporate development and general leadership experience; and

o  Dr Dan Gooding as Executive Director, who is a co-founder of Nuformix and was the Company's CEO until June 2020.  He instigated the Company's NXP002 programme as an inhaled therapy for the treatment of IPF and has been acting as a consultant to the Company since March 2022.

  Financial Highlights

· Loss before tax £423,677 (30 September 2021: loss of £449,023)

· Loss on ordinary activities (after tax credit) of £422,514 (30 September 2021: loss of £449,023)

· Loss per share 0.06p (30 September 2021: 0.08p)

· Net assets of £4,591,964 (30 September 2021: £5,250,968) including £389,840 of cash and cash equivalents at 30 September 2022 (30 September 2021: £1,071,831)

Dr Dan Gooding, Executive Director of Nuformix, said: "Our pre-clinical efforts to date demonstrate that inhaled treatment of IPF and related fibrotic lung diseases via NXP002 is a viable concept, a concept that it is becoming increasingly validated by clinical data emerging from the public domain. I expect our on-going penultimate pre-clinical studies to conclude that our data and IP support the progression of the programme towards patients for whom I believe NXP002 can address both the side effect and efficacy limitations of existing IPF treatment options. We hope to announce results for both NXP002 and NX004 in the near-term, with work on both programmes underway. Programme progression is being achieved using existing funds thanks to a lean operational model, which will continue to operate until our R&D and targeted partnering activities require further resource. I am excited by our prospects for the remainder of the year and look forward to sharing results as they emerge."

Enquiries:

Nuformix plc
Dr Dan Gooding, Executive Director	Via IFC Advisory
Stanford Capital Partners Limited
Tom Price / Patrick Claridge (Corporate Finance)	[phone]
John Howes (Corporate Broking)	[phone]
IFC Advisory Limited
Tim Metcalfe Zach Cohen	[phone] [e-mail]

About Nuformix

Nuformix is a pharmaceutical development company targeting unmet medical needs in fibrosis and oncology via drug repurposing. The Company aims to use its expertise in discovering, developing and patenting novel drug forms, with improved physical properties, to develop new products in new indications that are, importantly, differentiated from the original (by way of dosage, delivery route or presentation), thus creating new and attractive commercial opportunities. Nuformix has a pipeline of pre-clinical assets with potential for significant value and early licensing opportunities.

Nuformix plc shares are traded on the London Stock Exchange's Official List under the ticker: NFX. For more information, please visit www.nuformix.com .

Chairman's statement

Operational review

NXP002 (new form of tranilast) - Idiopathic Pulmonary Fibrosis (IPF)

NXP002 is the Group's pre-clinical lead asset and a potential novel inhaled treatment for IPF and possibly other fibrosing interstitial lung diseases ("ILDs"). It is a proprietary, new form of the drug tranilast, to be delivered in an inhaled formulation.

IPF is a devastating lung disease associated with a higher mortality rate than many cancers and where there is a need for additional treatment options. Thus, IPF represents a high unmet medical need and a significant commercial opportunity. IPF is classified as a rare disease and presents a global commercial market that is forecast to grow to US$8.8bn by 2027. Sales of standard-of-care therapies OFEV and Esbriet achieved US$2.5bn and US$1bn respectively in 2021.

 Tranilast has a long history of safe use as an oral drug for allergies, but there is evidence that supports its potential in fibrosis, including IPF. NXP002 is differentiated as it is a new form of tranilast that is being formulated for delivery direct to the lungs by inhalation, a new route of administration for this drug. The inhalation route is a well-known strategy for treatment of lung diseases to yield greater efficacy and reduce systemic side-effects compared to oral treatment. Nuformix has two patent families protecting new forms of tranilast, some members of which have been granted in major pharmaceutical territories, while others are still in prosecution. In addition, in March 2022 a method of use patent application was filed.

NXP002, as a potential treatment for IPF, is a likely candidate for Orphan Drug Designation which could provide additional product protection against potential competitors. The positioning of such an inhaled treatment for IPF could be either added to standard of care or administered as a monotherapy.

The pre-clinical inhalation strategy, initiated by the Company has significantly progressed NXP002 demonstrating:

· it can be delivered in-vivo by a range of nebulisers at the optimum particle size;

· very high doses appear to be well-tolerated; and

· an in-vivo inhalation dose response was observed for inflammatory and fibrotic biomarkers that is consistent with previous ex-vivo human IPF tissue studies.

However, the pre-clinical inhalation disease model chosen proved to be complex, and unlike previous studies in human IPF tissue, it continues to be challenging to achieve consistent and reproducible results, which will likely increase in the study of combination therapies, which are now clearly required given the clinical trends intelligence gathered at the ERS. As a consequence, the Company initiated studies in 3D human IPF lung tissue using a disease and species relevant model that is now available commercially via a CRO. Work will focus on NXP002 in combination with current standards-of-care, with the ultimate aim of reducing their negative side effects whilst enhancing their efficacy.  

NXP002 combinations have already shown great promise in human diseased IPF tissue, showing a pleasing synergistic efficacy effect with low doses of standards-of-care, resulting in the Group filing a new combination patent application earlier in 2022. The change in pre-clinical strategy , supported by intelligence gathered at ERS, is therefore aligned with and further enhances the Company's overall patent position as it continues to build assets for eventual out-licensing.

The Company presented NXP002 for the first time to the global IPF medical and pharmaceutical specialist community at the ERS Congress in Barcelona. The Company'sNXP002 poster sessions were well-attended by, amongst others, potential licensing partners, while the conference confirmed that inhalation is now widely accepted as a future IPF treatment modality.

Overall, the Board is encouraged by the progress of the studies and the positive data generated to date and is considering next steps, including potential further R&D studies to add further value and licensing activities.

NXP004 (novel forms of olaparib) - Oncology

The Group discovered novel forms of olaparib, a drug currently marketed by AstraZeneca, a Lynparza®. Lynparza® was first approved in December 2014 for the treatment of adults with advanced ovarian cancer and deleterious or suspected deleterious germline BRCA mutation. Since then, it has secured similar approvals in breast, pancreatic and prostate cancers with further trials on-going. These approvals have propelled Lynparza® sales to US$2.7bn in 2021 with industry analysts forecasting annual sales of US$9.7bn by 2028.

The Group has filed two patent applications on its novel forms of olaparib with the potential for patent life to 2040/2041.

The Company demonstrated enhanced performance of NXP004 cocrystals compared to olaparib. Subsequently, further preformulation studies allowed the Company to identify lead cocrystals to be progressed for further development.

The Company initiated work to progress the NXP004 programme in three key areas:

· commence scale-up of lead cocrystal production processes;

· compare in-vitro dissolution performance of lead co-crystals to the marketed Lynparza product; and

· based on the results from these studies a formulation development programme may be initiated. The aims of this work will be to develop prototype formulations that offer the potential to be both bioequivalent and 'bio-better' versus the Lynparza product.

This work will direct and support future out-licensing discussions for NXP004.

NXP001 (new form of aprepitant) - Oncology

NXP001 is a proprietary new form of the drug aprepitant that is currently marketed as a product in the oncology supportive care setting (chemotherapy induced nausea and vomiting). Nuformix granted an exclusive licence to Oxilio Ltd ("Oxilio"), a privately held pharmaceutical development company, to license NXP001 globally for oncology indications on terms previously disclosed. Continuing efforts are being made with Quotient Sciences to explore the formulation development options of NXP001 to understand the feasibility of achieving bioavailability and a dosing regime adequate for treatment of this indication. This work which is contingent on the manufacturing and supply of additional cocrystal material for testing and evaluation is underway.

Board changes

In the period from April 2022 to September 2022 a number of Board changes have occurred:

· appointment of Dr Julian Gilbert as Non-Executive Chairman, previously a Non-executive Director, replacing Dr Alastair Riddell who resigned in May 2022

· appointment of Dr Dan Gooding as an Executive Director who is a was a co-founder of Nuformix and the Company's CEO until June 2020

Outlook

The Company to continues to advance and exploit the current assets within the portfolio through the R&D and business development activities as set out above. The sharing agreement with Lanstead provides cash on a monthly basis to the Company to fund its lean operations until the Group's R&D and targeted partnering activities require further resource.

The strategy of the Group is to continue to increase the value of its existing assets while maintaining tight control of costs, including conducting business development/licensing activities using a structured and data-driven approach, with the goal of seeking global licensing deals.

Financial Review

In the first half of the financial year, the Board has continued to focus expenditure on R&D activities that add value to the current assets while optimising the operation to minimise administrative expenditure and the operational cost-base.

Dr Julian Gilbert

Non-Executive Chairman

12 December 2022

Statement of Directors' Responsibilities

We confirm that to the best of our knowledge:

1.  this interim condensed set of financial statements has been prepared in accordance with UK adopted IAS 34 'Interim Financial Reporting';

2.  the condensed set of financial statements has been prepared in accordance with ASB's 2007 Statement Half-Yearly Reports;

3.  the condensed set of financial statements give a true and fair view of the asset, liabilities, financial position and profit or loss of the group and the undertakings included in the consolidation as a whole as required by DTR 4.2.4R; and

4.  the interim management report includes a fair review of the information required by:

4.1.  DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

4.2.  DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

The directors of Nuformix plc are listed in the Group's 2022 Annual Report and Accounts and the current board are set out on the Investors Information section of Nuformix's website at: Investors Information - Nuformix

Dr Julian Gilbert

Non-Executive Chairman

12 December 2022

Further copies of this document are available from the company's registered address and will be available on the company's website later today.

Nuformix plc

Registration number: 09632100

Nuformix plc

Registration number: 09632100

Unaudited Interim Results

Consolidated Income Statement and Statement of Comprehensive Income for the six months ended 30 September 2022

		6 months ending 30 September	6 months ending 30 September	Year ending 31 March
		2022	2021	2022
		Unaudited	Unaudited	Audited
	Note	£	£	£
Revenue		-	50,000	50,000
Cost of sales		-	(1,695)	(1,695)
Gross profit		-	48,305	48,305
Total administrative expenses		(423,677)	(497,327)	(1,318,577)
Other operating income		-	-	-
Operating loss		(423,677)	(449,022)	(1,270,272)
Finance costs		-	-	-
Loss before tax		(423,677)	(449,022)	(1,270,272)
Income tax receipt		1,163	-	161,279
Loss for the period and total comprehensive income for the period		(422,514)	(449,022)	(1,108,993)
Loss per share - basic and diluted	4	0.06p	0.08p	0.19p

Nuformix plc

Registration number: 09632100

Unaudited Interim Results

Consolidated Statement of Financial Position as at 30 September 2022

		30 September	30 September	31 March
		2022	2021	2022
	Note	Unaudited	Unaudited	Audited
		£	£	£
Assets
Non-current assets
Property, plant and equipment	5	177	698	438
Intangible assets	6	4,132,182	4,168,640	4,150,411
		4,132,359	4,169,338	4,150,849
Current assets
Trade and other receivables		257,327	53,663	199,600
Income tax asset		-	121,020	161,279
Cash and cash equivalents		389,840	1,071,831	464,095
		647,167	1,246,514	824,974
Total assets		4,779,526	5,415,852	4,975,823
Equity and liabilities
Equity
Share capital	7	709,309	591,609	615,609
Share premium		6,671,253	6,384,835	6,500,817
Merger relief reserve		10,950,000	10,950,000	10,950,000
Reverse acquisition reserve		(8,005,195)	(8,005,195)	(8,005,195)
Share option reserve		2,039,044	2,019,681	2,026,664
Retained earnings		(7,772,447)	(6,689,962)	(7,349,933)
Total equity		4,591,964	5,250,968	4,737,962
Current liabilities
Trade and other payables		187,562	164,884	237,861
		187,562	164,884	237,861
Total equity and liabilities		4,779,526	5,415,852	4,975,823

Nuformix plc

Unaudited Interim Results

Consolidated Statement of Changes in Equity for the six months ended 30 September 2022

	Share capital £	Share premium £	Merger Relief Reserve £	Reverse acquisition reserve	Share option reserve	Retained earnings £	Total £
At 31 March 2021	591,609	6,384,835	10,950,000	(8,005,195)	2,005,952	(6,240,940)	5,686,261
Loss for the half-year and total comprehensive income	-	-	-	-	-	(449,022)	(449,022)
Share and warrant based payment	-	-	-	-	13,729	-	13,729
As at 30 September 2021	591,609	6,384,835	10,950,000	(8,005,195)	2,019,681	(6,689,962)	5,250,968
Loss for the half-year and total comprehensive loss	-	-	-	-	-	(659,971)	(659,971)
Issue of share capital	24,000	145,982	-	-	-	-	169,982
Share issue costs	-	(30,000)	-	-	-	-	(30,000)
Share and warrant based payment	-	-	-	-	6,983	-	6,983
At 31 March 2022	615,609	6,500,817	10,950,000	(8,005,195)	2,026,664	(7,349,933)	4,737,962
Loss for the half-year and total comprehensive income	-	-	-	-	-	(422,514)	(422,514)
Issue of share capital	93,700	170,436	-	-	-	-	264,136
Share and warrant based payment	-	-	-	-	12,380	-	12,380
As at 30 September 2022	709,309	6,671,253	10,950,000	(8,005,195)	2,039,044	(7,772,447)	4,591,964

Nuformix plc

Unaudited Interim Results

Consolidated Statement of Cash Flows for the six months ended 30 September 2022

	6 months ending 30 September	6 months ending 30 September	Year Ended 31 March
	2022	2021	2022
	Unaudited	Unaudited	Audited
	£	£	£
Cash flows from operating activities
Loss for the year	(422,514)	(449,022)	(1,108,993)
Adjustments to cash flows from non-cash items
Depreciation and amortisation	18,489	18,488	36,976
Income tax expense	-	-	(161,279)
Share and warrant based payment	12,380	13,729	20,712
	(391,645)	(416,805)	(1,212,584)
Working capital adjustments
(Increase) decrease in trade and other receivables	(58,888)	(21,403)	(167,340)
Increase (decrease) in trade and other payables	(50,300)	(159,740)	(86,763)
Cash generated from operations	(500,833)	(597,948)	(1,466,687)
Income taxes (paid)/received	162,442		121,020
Net cash flow from operating activities	(338,391)	(597,948)	(1,345,667)
Cash flows from investing activities
Net cash flows from investing activities	-	-	-
Cash flows from financing activities
Proceeds of share issue	264,136	-	139,982
Net cash flows from financing activities	264,136	-	139,982
Net (decrease)/increase in cash and cash equivalents	(74,255)	(597,948)	(1,205,685)
Cash and cash equivalents at start of period	464,095	1,669,780	1,669,780
Cash and cash equivalents at end of period	389,840	1,071,832	464,095

Nuformix plc Unaudited Interim Results

Notes to the Consolidated Financial Statements for the six month ended 30 September 2022

1. Basis of preparation of interim financial information

The consolidated interim financial statements have been prepared in accordance with the recognition and measurement principles of International Accounting Standards as endorsed by the UK Endorsement Board ("IAS"), and are compliant with IAS34 "Interim Financial  Reporting."

The Group prepares its accounts in accordance with applicable UK Adopted International Accounting Standards.

The accounting policies and methods of computation followed in the condensed consolidated interim financial statements are the same as those applied in the most recent annual report

The consolidated interim financial statements are unaudited and do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2022, prepared in accordance with IAS, have been filed with the Registrar of Companies. The Auditors' Report on these accounts was unqualified and included a reference to which the Auditors drew attention by way of an emphasis of matter, without qualifying their report, that a material uncertainty existed that might cast significant doubt on the Group's ability to continue as a going concern at that time. The Auditors' Report did not contain any statements under section 498 of the Companies Act 2006.

The condensed consolidated interim financial statements are for the 6 months to 30 September 2022.

The condensed consolidated interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the group's annual financial statements for the year ended 31 March 2022, which were prepared in accordance with UK adopted International Accounting Standards ("IFRSs").  As explained above, although this was a different accounting framework, there is no impact on recognition, measurement or disclosure. 

2. Basis of consolidation

On 16 October 2017 the Company acquired the entire issued ordinary share capital of Nuformix Technologies Limited and became the legal parent of Nuformix Technologies Limited. The accounting policy adopted by the Directors applies the principles of IFRS 3 (Revised) "Business Combinations" in identifying the accounting parent as Nuformix Technologies Limited and the presentation of the Group consolidated statements of the Company (the legal parent) as a continuation of financial statements of the accounting parent or legal subsidiary (Nuformix Technologies Limited).

3. Going concern

The consolidated interim financial statements have been prepared on the going concern basis of preparation which, inter alia, is based on the directors' reasonable expectation that the Group has adequate resources to continue to operate as a going concern for at least twelve months from the date of their approval. In forming this assessment, the directors have prepared cashflow forecasts covering the period ending 31 March 2024 which take into account the likely run rate on overheads and planned research expenditure and the expectations of a further fundraise to be completed in H1-23.

Whilst there can be no guarantee of the successful outcome of future studies, in compiling the cashflow forecasts the directors have made cautious estimates of the likely outcome of such studies, when a fundraise may complete and have considered alternative strategies should projected funding be delayed or fail to materialise. These strategies include postponing non-committed research expenditure, securing alternative licensing arrangements from those currently planned and additional corporate activity to support the business.

These circumstances indicate the existence of a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern.  The consolidated interim financial statements do not include any adjustments that would result if the company or Group was unable to continue as a going concern.

After careful consideration, the directors consider that they have reasonable grounds to believe that the Group can be regarded as a going concern and, for this reason, they continue to adopt the going concern basis in preparing the consolidated interim financial statements.

4 Loss per Share

Loss per share is calculated by dividing the loss after tax attributable to the equity holders of the Group by the weighted average number of shares in issue during the period.

The basic earnings per share for each comparative period is calculated by dividing the loss in each of those periods by the legal entity's historical weighted average number of shares outstanding.

	30 September	30 September	31 March
	2022 Unaudited £	2021 Unaudited £	2022 Audited £
Loss after tax	(422,514)	(449,022)	(1,108,993)
Weighted average number of shares	707,261,281	591,609,368	598,447,724
Basic and diluted loss per share	0.06p	0.08p	0.19p

5 Property, Plant and Equipment	Computer equipment	Total
	£	£
Cost or valuation
At 31 March 2021	1,561	1,561
At 30 September 2021	1,561	1,561
At 31 March 2022	1,561	1,561
At 30 September 2022	1,561	1,561
Depreciation
At 31 March 2021	604	604
Charge	259	259
At 30 September 2021	863	863
Charge	260	260
At 31 March 2022	1,123	1,123
Charge	261	261
At 30 September 2022	1,384	1,384
Carrying amount
At 30 September 2021	698	698
At 31 March 2022	438	438
At 30 September 2022	177	177

6 Intangible Assets	Goodwill		Patents	Total
Cost	£		£	£
At 31 March 2021		4,023,484	449,611	4,473,095
At 30 September 2021		4,023,484	449,611	4,473,095
Written Off		-	(85,035)	(85,035)
At 31 March 2022		4,023,484	364,576	4,388,060
At 30 September 2022		4,023,484	364,576	4,388,060

Amortisation

At 31 March 2021  -  286,227  286,227

Amortisation charge    -  18,228  18,228

At 30 September 2021  -  304,455  304,455

Amortisation charge    -  18,229  18,229

On Written Off    -  (85,035)  (85,035)

At 31 March 2022  -  237,649  237,649

Amortisation charge	-  18,229  18,229
At 30 September 2022	-  255,878  255,878
Net book value
At 30 September 2021	4,023,484  145,156  4,168,640
At 31 March 2022	4,023,484  126,927  4,150,411
At 30 September 2022	4,023,484  108,698  4,132,182

For impairment testing purposes, management consider the operations of the Group to represent a single cash-generating unit ("CGU") focused on research and development. Consequently, the goodwill is effectively allocated and considered for impairment against the business as a whole being the single CGU.

7 Share Capital

Allotted, called up and fully paid shares

	30 September 2022 Unaudited		30 September 2021 Unaudited		31 March 2022 Audited
	No.	£	No.	£	No.	£
Ordinary shares of £0.001 each	709,309,368	709,309	591,609,368	591,609	615,609,368	615,609

On 4 April 2022, the company completed a capital increase through the issue of 93,700,000 shares of £0.001 each in a share placement at a price of £0.015 per share. The Share Premium arising has been calculated in line with the Sharing Agreement with Lanstead Capital Partners LP ("Lanstead") as outlined below.

In December 2021 the Company entered into a Sharing Agreement with Lanstead, split into two tranches of new shares issued with payments to be received over a 20-month period from March 2022 to October 2023.

The agreement is structured in such a way that the proceeds received by the Company are linked to the market price for the Company's shares. The proceeds are calculated based on the volume-weighted average share price in the month preceding the payment from Lanstead, compared to a target price of 2p per share. Based on historic share prices, and a valuation as at the latest available price the total proceeds from Tranche 2 (issued in April 2022) are expected to be £264,136 (including Share Premium of £170,436), of which £206,609 has been recognized in debtors.

8 Share Options and Warrants

The Group operates share-based payments arrangements to remunerate directors and key employees in the form of a share option scheme. Equity-settled share-based payments are measured at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant. The fair value determined at the grant date of the equity-settled, share-based payments and is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest and adjusted for the effect of non-market based vesting conditions.

 

END

 

 

IR GPGCWPUPPGMP