Diurnal losses widen ahead of maiden revenue

Clinical-stage pharmaceutical company Diurnal saw losses widen in the first half of its trading year as costs rose ahead of the launch of its maiden product.

In the six months leading to 31 December, Diurnal's pre-tax loss widened 35% to £7.8m as costs associated with the research and development of its endocrine-focused products rose to a combined £7.7m from £5.7m posted a year earlier.

Diurnal chief executive Martin Whitaker said the firm had made "significant steps" towards becoming a revenue-generating speciality pharma company in recent months, especially gaining regulatory approval of its first product. Alkindi, a drug designed to address the needs of paediatric patients with adrenal insufficiency that result from deficiency of the essential hormone cortisol, was approved in Europe earlier this year.

There was still cash and equivalents of £14m in the bank at the half year stage, down 45% year-on-year, while net assets nearly halved to £10.8m over the same period.

Separately, Diurnal announced on Monday that it had completed patient recruitment for the European phase III trial of Chronocort, its modified-release hydrocortisone product, and was also granted its first US and Japanese patents for the congenital adrenal hyperplasia drug.

"Our experience in the development, registration and preparation for launch of Alkindi will be invaluable in the progression of Chronocort towards potential approval and launch in 2020. This positive momentum is also reflected in our US programmes; we have made significant progress with the development of Alkindi and Chronocort for this important market, with activities to support the planned Alkindi Phase III regulatory package ongoing and Chronocort Phase III development expected to commence later in 2018," said Whitaker.

Diurnal expects to make maiden revenue in the second half of 2018.

As of 1340 GMT, shares had gained 1.90% to 215.00p.