N4 Pharma calls it a day on generics division, losses widen

After undertaking a strategic review, N4 Pharma directors have decided to discontinue further development of Sildenafil and shutter the rest of its generics division.

N4 received disappointing preliminary results from its clinical trial on Sildenafil, better known by the brand Viagra, back in July, which revealed the formulation had not met its key target endpoints and after going over the full clinical data report, the outfit realised its chances of success were now considerably lower.

The AIM-listed firm told investors on Thursday that this outcome also had similar implications for other patents within its generics portfolio, namely Aprepitant and Duloxetine, leading it to close the unit as a whole.

By taking the step to curb further investment into its generics division, N4 said it would maintain sufficient funds to continue investing in its work on Nuvec, a silica nanoparticle, as a delivery system well into 2019. So far N4 has secured a collaboration with MedImmune UK to evaluate potential applications for Nuvec and said it was now beginning the "relevant chemisty manufacturing and controls work needed... in order to be well placed to work with partners to undertake trials as and when needed".

In its interim results on Thursday, N4 revealed that its operating loss had grown 41% to £553,379 but losses per share were cut to 0.62p from the 0.73p turned in a year ago. Cash and equivalents expanded 3% to £1.71m

Chief executive Nigel Theobald said: "The board remains very optimistic about the future of the company and its prospects. Whilst it is very disappointing that we have had to make the decision as announced earlier today to close our generics division, we are excited about the opportunities and the potential for Nuvec."

As of 1130 BST, N4 shares had tumbled 36.16% to 4.28p.