Faron losses widen following disappointing Traumakine trial

Faron Pharmaceuticals' operating loss doubled in the first half of its trading year following the group's disappointing trial on its Traumakine treatment.

The clinical stage biopharmaceutical company saw losses widen 105% to €14m in the six months ended 30 June in what chief executive Dr Markku Jalkanen called a "challenging period".

Research and development costs soared 95% to €11.7m as Faron booked €20,000 in revenues.

The AIM-listed group's 'Interest' study on Traumakine, its lead product in development for the treatment of organ failure, produced "inconsistent" interferon beta-1a bioactivity across the treatment group and did not meet the trial's primary end-point.

Jalkanen told investors he was "excited" to launch Faron's first in-human trial of Clevegen, part of the group's new generation of drugs aimed at weakening a tumour's ability to suppress the human immune system.

Jalkanen said: "Whilst we were disappointed with the results from the Interest study, we have made, and are continuing to make, efforts to fully understand the data in order to define the next steps in the company's strategy for Traumakine."

"Our focus for the remainder of 2018 will be to continue to rapidly progress Clevegen through the clinic whilst also continuing to preserve cash in order to deliver value to shareholders."

As of 0830 BST, Faron shares had tumbled 14.88% to 103p.