Silence Therapeutics plc Unaudited Preliminary Results for the Year Ended 31 December 2009
By Silence Therapeutics Plc, PRNEWednesday, April 28, 2010
LONDON, April 29, 2010 - Silence Therapeutics plc (AIM: SLN) ("Silence" or the "Company")
announces its results for the year ended 31 December 2009.
On 5 January 2010, Silence merged with U.S.-based RNA interference (RNAi)
therapeutic company, Intradigm Corporation, to form a leading company in the
field of RNAi. The merger offers a number of strategic benefits including
multiple RNAi discovery, development and delivery technologies, a broad
internal and partnered product pipeline and a strong portfolio of
intellectual property. Details and outlook relating to this merger are
provided in the Chairman's Statement and the Chief Executive's Review.
Analyst Conference Call and Webcast: An analyst briefing call and
simultaneous webcast will be held Thursday, 29 April 2010 at 2:00pm BST /
9:00am ET. The webcast can be accessed via Silence Therapeutics' website at
www.silence-therapeutics.com. The conference call can be accessed
by dialing:
U.K.: 0 808 101 7548
U.S.: 913-312-1483
Participant PIN code: 6504213
The archived webcast will be available afterwards on Silence
Therapeutics' website.
HIGHLIGHTS 2009
OPERATIONAL
- Silence initiated a Phase I clinical trial of Atu027, its
lead drug candidate for the treatment of advanced solid tumours. The
trial, being conducted at the clinical study centre of the Cancer
Hospital SanaFontis in Freiburg, Germany, is an open-label,
dose-finding study to address the safety, tolerability and
pharmacokinetics of Atu027. It is expected that results from the
trial will be available in the second half of 2011.
- Silence's licensing partner, Quark Pharmaceuticals, commenced
Phase I/II clinical trials with QPI-1002, a short interfering RNA
(siRNA) therapeutic product candidate in development for use in kidney
transplants. QPI-1002 is based on Silence's proprietary AtuRNAi
chemistry.
- The European Patent Office (EPO) granted a patent on protein
kinase N3 (PKN3), the target gene for Silence's lead compound Atu027.
- The Technical Board of Appeal of the European Patent Office
revoked in its entirety European patent EP1 214 945, which is a
fundamental competitor patent owned by Alnylam Europe AG.
- Silence entered into a delivery collaboration with Dainippon
Sumitomo Pharma Co., Ltd. of Japan to demonstrate the functional
delivery of Silence's proprietary siRNA molecules to specific targets.
The collaboration is evaluating Silence's proprietary AtuRNAi, a novel
proprietary siRNA molecule which is chemically modified to improve
stability, reduce manufacturing costs and increase yield. The
collaboration is also making use of Silence's AtuPLEX delivery
technology, which has been shown to improve functional intracellular
uptake.
- The Opposition Division of the EPO upheld Silence's core AtuRNAi
patent EP 1 527 176 ('176) in amended form. The amended form of patent
'176 covers Silence's proprietary blunt-ended siRNA molecules
containing alternating 2'-O-Methyl modifications.
FINANCIAL
- Revenue generated in the year was 1.72m pounds Sterling
(2008: 2.21m pounds)
- Administrative expenses increased to 4.20m pounds (2008:
3.29m pounds)
- Research and development expenditure decreased to 5.07m
pounds (2008: 6.71m pounds)
- The cash position at year-end was 1.13m pounds. A further
15.0m pounds (gross) was raised shortly after the year-end through an
institutional placing that closed in January 2010. At the end of 2008,
Silence had cash of 3.35m pounds.
POST YEAR-END OPERATIONS
-- Silence merged with U.S.-based RNAi therapeutic company Intradigm
Corporation ("Intradigm") on 5 January 2010 to form a leading
company in the field of RNA interference. The merger was effected
by the issue of Silence shares to the shareholders of Intradigm
such that the Intradigm shareholders at the time of the merger
owned approximately 36% of the issued share capital of Silence.
The merger offers a number of strategic benefits including
multiple RNAi discovery, development and delivery technologies, a
broad internal and partnered product pipeline and a strong
portfolio of intellectual property.
In parallel with the merger, Silence Therapeutics raised 15 million
pounds (gross) through an institutional placing and a subscription of
shares at a price of 23 pence per share. The funds raised will support
the company's ongoing development efforts and provide the strength
from which to pursue additional partnerships and development deals.
Upon completion of the merger, Philip Haworth, J.D. Ph.D., former
chief executive officer of Intradigm, assumed the role of chief
executive officer of the enlarged group.
-- The United States Patent and Trademark Office (USPTO) issued the
company a notice of allowance on a patent application directed to
methods of treatment using PKN-3, a high-value therapeutic
target in the area of oncology.
-- Silence and Dainippon Sumitomo Pharma Co., Ltd. agreed to expand
their ongoing siRNA delivery collaboration to examine delivery of
RNAi therapeutics to additional disease targets selected by
Dainippon Sumitomo.
-- Silence announced a strategic plan designed to optimally organize
its resources following its recent merger with Intradigm. Moving
forward, all research activities related to Silence's novel RNAi
therapeutic platforms, including technologies that have emerged
from both Silence and Intradigm, will take place at the company's
Berlin location. Other functions including operations, business
development, legal and certain drug development activities will be
conducted in Palo Alto. Silence expects this move to result in a
significant reduction in the company's operating costs moving
forward.
-- Silence and AstraZeneca agreed to an extension of their ongoing
siRNA delivery collaboration to examine new and enhanced delivery
approaches for RNAi therapeutics.
POST YEAR-END BOARD AND MANAGEMENT CHANGES
- Silence announced a board change with the resignation of Iain
Ross as chairman. Jerry Randall, who was appointed to the Silence board
in 2008, was appointed non-executive chairman.
- Silence announced a management and board change with the
resignation of Melvyn Davies as chief financial officer. Silence also
announced the appointment of Max Herrmann as the company's chief
financial officer and company secretary with effect from 4 May 2010.
CHAIRMAN'S STATEMENT
2009 was a defining year for Silence Therapeutics. Each of the company's
internal programs advanced steadily - we entered into a new collaboration
with Dainippon Sumitomo and made excellent progress with each of our pharma
partnerships, and we strengthened our intellectual property position by
expanding our portfolio of filed and issued patents.
Despite our many internal successes, the turbulence of the world's
financial markets created a significant degree of uncertainty that required
the company's attention and decisive action. In an effort to address the
declining opportunity for financing and the erosion of our share value, we
began to evaluate our options, with the goal of achieving the following
objectives:
- Establish Silence as a partner-of-choice for the world's leading
pharmaceutical companies;
- Expand our technology base to allow us to best address the challenges
of RNAi delivery; and,
- Secure additional financing for the company.
The merger with Intradigm Corporation, which was completed in January
2010, took Silence Therapeutics a long way to achieving these goals including
a concurrent financing of 15.0m pounds (gross). As a result, Silence is now
better funded and holds a strong strategic position in the three areas we
believe are critical to building, protecting and commercializing RNAi
therapeutics:
- Proprietary delivery technologies
- Silence's delivery platform is one of the industry's broadest,
including both lipid and polymer technologies, offering drug
developers an increased opportunity for successful delivery to
specific tissues to cause specific therapeutic benefits.
- Potent siRNA sequences
- Silence has issued and pending patents on multiple high-value siRNA
sequences of varying structure.
- Innovative siRNA structural features
- Silence has issued and pending patents directed to one of the
industry's most advanced siRNA chemical modification technologies
optimized for improved stability, yield and safety.
- Silence's exclusive licenses from the University of Massachusetts
provide access to issued and pending patents associated with the
Zamore "Design Rules" including methods for increased potency and
reduced off-target effects.
A key factor in establishing Silence as a partner-of-choice for
pharmaceutical companies is our ability to provide novel and effective siRNA
delivery solutions. As it is not likely that the vast range of siRNA delivery
challenges will be addressed by a single platform, we believe it's critical
to build a broad toolbox of solutions and technologies. By combining the
impressive expertise of both Silence and Intradigm, we now have one of the
industry's most comprehensive and versatile delivery technology platforms,
providing Silence with unmatched potential to develop solutions for
successful siRNA delivery to particular tissues to cause specific therapeutic
benefits.
The combined assets of the new company have drawn the attention of a
number of leading pharmaceutical companies worldwide and we are actively
engaged in partnering discussions spanning a range of new and exciting
development opportunities.
In summary, the merger combined the strength of two innovative entities
and created a new leadership in RNAi therapeutic development. As a result, we
have succeeded in establishing a new company with the following strengths and
advantages:
- Comprehensive platform of technologies capable of addressing
the discovery, development and delivery of RNAi therapeutics.
Capabilities extend to all essential areas for successful product
development including formulation and drug delivery, siRNA structure and
chemistry and a diverse library of therapeutic siRNA sequences.
- Advancing pipeline of internal and partnered product candidates.
At least half of the siRNA programs currently in clinical development
globally incorporate Silence's technology. These include product
candidates that are being advanced by partners such as Pfizer and Quark
Pharma.
- Broad and diverse intellectual property portfolio. IP protection
covering essential areas of RNAi therapeutic development (target
sequences, delivery and siRNA structural features).
- Validating partnerships with global pharmaceutical companies. The
multiple major partnerships with companies such as AstraZeneca, Pfizer,
Quark Pharma and Dainippon Sumitomo demonstrate the credibility of
Silence's technologies.
- Experienced management team and board of directors. Our new
management team, board and recent reorganization provide the expertise
and focused skills required to advance Silence's discovery and
development activities.
- Expanded financial support and stability to facilitate new growth
opportunities. International shareholder base offers broader access to
capital, which should ultimately provide additional strength to
negotiate favorable strategic transactions.
We believe the merger produced a stronger, more stable and
technologically sophisticated company that is well positioned as a new leader
in RNAi therapeutic development. We are actively developing our strategic
plan for the near term, and we will continue to take all steps required to
advance our internal and partnership programs, as well as establish new
collaborations to fuel our pipeline in the future.
We are grateful for the support of our shareholders and new investors
alike and we wish to assure them both that we are committed to building
corporate value through meaningful scientific progress and additional
high-value partnerships with the pharmaceutical industry.
Thank you for your continued support of Silence Therapeutics.
Jerry Randall ACA
Chairman
CHIEF EXECUTIVE'S REVIEW
OVERVIEW
In 2009, a number of pivotal events provided the foundation and framework
that will propel Silence forward in 2010 and beyond. During the year, the
company made progress on all fronts - in the clinic, with partnerships,
financially and in securing critical intellectual property (IP). These
successes opened the door for further opportunity, culminating in the merger
with Intradigm on 5 January 2010. We believe post-merger Silence is a new
leader in RNAi therapeutic development with a unique potential to develop
delivery solutions that can be tailored to address various therapeutic
requirements. With our expanded technologies and assets, we are aggressively
executing a plan designed to further strengthen the business and create
increasing value for our shareholders.
Before looking ahead, I'd like to address each of the critical 2009
events that contributed to our new company and our future opportunities.
OPERATIONAL
Progress in the Clinic
In 2009, we made great strides in the clinic with two of our programs in
human trials. In January 2009, our licensing partner, Quark Pharmaceuticals,
commenced a Phase I/II clinical trial with QPI-1002, its RNAi drug targeting
the p53 gene for the prevention of delayed graft function (DGF) following
kidney transplants. QPI-1002 incorporates Silence's AtuRNAi technology and we
believe this independent advancement of our technology represents a
significant validation of Silence's science and drug candidates. While this
program is managed by Quark, we believe the trial is progressing as planned
and we look forward to the results.
In June 2009, Silence initiated a Phase I study of Atu027, our lead drug
candidate for the treatment of advanced solid tumours. The trial, being
conducted at the clinical study centre of the Cancer Hospital SanaFontis in
Freiburg, Germany, is an open-label, dose-finding study to address the
safety, tolerability and pharmacokinetics of Atu027. This trial has 11 dosing
regimens. We are advancing through the dosing protocol as planned and we
remain on target to have results in the second half of 2011.
Atu027 specifically targets PKN3, a molecule involved in cancer growth
and metastasis formation. Atu027 is Silence's most advanced clinical
candidate for a systemically delivered siRNA using the company's proprietary
AtuPLEX delivery technology. It is our belief that Atu027 may ultimately be a
valuable treatment option for cancer patients that do not respond to standard
therapy.
Silence is also working to develop three pre-clinical programs. Atu134 is
being evaluated for potential treatment of acute lung injury and Atu111 and
Atu150 are both being evaluated for the potential treatment of solid tumours.
Expanding Our Collaborations
In August 2009, Silence expanded its partnerships with the addition of a
new collaboration with Dainippon Sumitomo Pharma Co., Ltd. of Japan. The
purpose of the collaboration is to demonstrate the functional delivery of
Silence's proprietary siRNA molecules to specific targets. The ongoing
collaboration is currently evaluating Silence's proprietary AtuRNAi molecule
that is chemically modified to improve safety, reduce manufacturing costs and
increase stability. The collaboration is also making use of Silence's AtuPLEX
delivery technology, which has been shown to improve functional intracellular
uptake.
Though this collaboration is currently only seven months old, we were
pleased to announce in March 2010 that Dainippon Sumitomo has elected to
expand this collaboration by examining delivery to additional disease targets
that were not originally specified under the initial collaboration.
As a company focused on addressing the challenges of RNAi delivery, we
are very pleased that Dainippon Sumitomo has elected to expand our
collaboration so quickly. We believe this is a strong testimony to the
potential of our delivery technology as well as the value we bring our
partners.
In addition to our partnership with Dainippon Sumitomo, we currently have
two ongoing collaborations with AstraZeneca, which were initiated in June
2007 and March 2008. The June 2007 collaboration was established for the
purpose of developing novel siRNA therapeutics against specific targets
exclusive to AstraZeneca, and the March 2008 collaboration seeks to develop a
range of novel approaches for the delivery of siRNA molecules. These
collaborations continue to advance as planned and we, together with our
partners, are very pleased with the progress to date. We look forward to
providing updates on these collaborations in the near future.
Building Financial Strength
In January 2009, Silence raised 2.65m pounds net of expenses through the
issue of 15m shares at a price of 18p per share. Concurrent with our merger
with Intradigm in January 2010, we raised an additional 15m pounds (gross) at
a price of 23p per share. Such funds are intended to support the company's
ongoing development efforts and provide a position of strength as we work to
pursue additional partnerships and development deals.
Beyond the funding itself, it is important to note who invested in each
of these rounds. We are fortunate to have the support of several preeminent
institutions in the U.K., as well as several leading U.S. institutions. We
are also very fortunate to have the financial backing of a number of
strategic pharmaceutical venture groups including Lilly Ventures, Roche
Finance and Astellas Venture, who were investors in Intradigm.
Enhancing Our Intellectual Property Estate
The importance of intellectual property to success in the RNAi
therapeutic field cannot be overstated. Yet, we argue that the true value of
IP lies in the specific claims as opposed to the number of patents. During
2009 and continuing in 2010, both Silence and the former Intradigm secured a
number of pivotal patents that are all now owned by post-merger Silence. The
following events contributed significantly to the strength of Silence's IP
estate:
- The European Patent Office (EPO) granted a patent on protein
kinase N3 (PKN3), the target gene for Silence's lead compound Atu027.
- The Technical Board of Appeal of the European Patent Office
revoked in its entirety European patent EP1 214 945, which is a
fundamental competitor patent owned by Alnylam Europe AG.
- The Opposition Division of the EPO upheld Silence's core AtuRNAi
patent EP 1 527 176 ('176) in amended form. The amended form of patent
'176 covers Silence's proprietary blunt-ended siRNA molecules containing
alternating 2'-O-Methyl modifications.
- The United States Patent and Trademark Office (USPTO) issued a
notice of allowance on a patent application directed to methods of
treatment using PKN-3, a high-value therapeutic target in the area of
oncology. The allowed subject matter is directed to, among other things,
methods of treating cancer with siRNA or antisense molecules that target
the PKN-3 messenger RNA (mRNA). The claims cover the siRNA molecule in
Silence's lead clinical compound, Atu027, an RNAi therapeutic that
targets PKN-3 for the treatment of advanced solid tumours.
In addition to these events, Silence also now owns key intellectual
property rights previously secured by Intradigm as follows:
- Issued and pending patents on multiple high-value siRNA sequences of
varying structure;
- Issued and pending patents directed to one of the industry's most
advanced siRNA chemical modification technologies optimized for improved
stability, yield and safety; and,
- Three exclusive licenses from the University of Massachusetts to
the issued and pending patents associated with the Zamore "Design Rules"
including methods for increased potency and reduced off-target effects.
With these combined assets, we believe our patent estate today is one of
the most useful, most functional portfolios in the RNAi field and we believe
it will provide us with the opportunity to actively pursue all our areas of
interest.
FINANCIAL
Silence successfully strengthened its financial position through the
completion of two financings in 2009 and early 2010 that generated proceeds
of approximately 17.7m pounds (gross). This funding provided cash resources
that will support the company's operations into the second quarter of 2011.
This is without taking into account any milestone or other receipts that the
company believes it could receive in 2010.
Revenue
Revenue generated in the year declined to 1.72m pounds in 2009 from 2.21m
pounds in 2008. The decrease in revenue was primarily attributable to
receiving milestone income from previous deals in 2008 which did not arise in
2009.
Administrative Expenses
Administrative expenses during the year increased to 4.20m pounds in 2009
from 3.29m pounds in 2008. The increase in administrative expenses is
primarily attributed to costs incurred in respect of the acquisition of
Intradigm subsequent to the year end.
Research and Development Expenses
Research and development expenses during the year decreased to 5.07m
pounds in 2009 from 6.71m pounds in 2008. The decrease in research and
development expense is primarily attributed to the group having incurred
substantial pre-clinical development costs in 2008 prior to the commencement
of its clinical trials of Atu027 which commenced in 2009.
Interest
Interest income fell from 0.25m pounds in 2008 to less than 0.1m pounds
in 2009 due to lower average balances on deposit and the marked fall in
interest rates during 2008 and 2009.
Taxation
The taxation credit arises through the availability of UK R&D tax credits
in respect of some of the group's research and development costs.
Liquidity, cash, cash equivalents and money market investments
The group's cash position at year-end was 1.13m pounds. A further 15.0m
pounds (gross) was raised shortly after the year-end through an institutional
placing that closed in January 2010. At the end of 2008, Silence had cash of
3.35m pounds.
The net cash outflow from operating activities was 4.65m pounds against
an operating loss of 7.55m pounds primarily reflecting the impact of changes
in other working capital of 1.6m pounds and of non-cash items such as
depreciation, amortisation and share option charges of 1.0m pounds.
SUMMARY AND OUTLOOK
I'd like to conclude by reviewing the rationale for the recent merger and
the subsequent goals we aim to achieve.
In setting out to combine these two companies, our objective was to
dramatically change the competitive landscape in the field of RNAi
therapeutics. While other companies in the sector may claim leadership, this
merger created one of the most sophisticated platforms in RNAi therapeutic
development. As a result of this merger, Silence now holds a powerful and
strategic position in the three areas we believe are critical to building,
protecting and commercializing RNAi therapeutics: proprietary delivery
technologies, potent siRNA sequences and innovative siRNA structural
features.
This unique combination of technology has created an unparalleled
technology platform that we believe will drive many of the most critical
advances in the field. Perhaps most exciting about the merger is the powerful
range of RNAi delivery technology solutions possessed by the new company. The
most significant hurdle to overcome in realization of the vast potential of
RNAi therapeutics is that of enabling safe and effective delivery of siRNA
payloads. By combining the expertise of both Intradigm and Silence, we now
have one of the industry's most comprehensive and versatile delivery
technology platforms, providing Silence with unmatched potential to develop
delivery solutions that can be tailored to address various therapeutic
requirements.
Beyond our technology platform, Silence is a clear leader in the
enablement of clinical development of RNAi therapeutic candidates. At
present, we believe that at least half of the siRNA programs currently in
clinical trials worldwide are based on Silence's technology, representing the
significant impact that our technology platform has within the sector. This
impressive pipeline of products not only validates the strength of Silence's
technology, it also validates the team of researchers that has guided the
development path.
In summary, the rationale driving this merger was to combine the strength
of two innovative entities to create a new leadership in RNAi therapeutic
development. With the transaction complete, it is now our task to establish a
path that allows us to optimize our resources and efficiently advance our
development programs and clinical efforts. To this end, we recently announced
a restructuring of the company to focus research in Berlin, and business
operations in Palo Alto. We will continue to evaluate the most beneficial
strategies to address the challenges ahead.
In closing, I wish to express my sincere appreciation to our dedicated
employees and the shareholders who support our company. In the coming year,
we will continue to work diligently to advance our groundbreaking science and
to continue to build shareholder value.
Thank you for your continued support of Silence Therapeutics.
Philip Haworth, Ph.D.
Chief Executive Officer
Forward-Looking Statements
This press release includes forward-looking statements that are subject
to risks, uncertainties and other factors. These risks and uncertainties
could cause actual results to differ materially from those referred to in the
forward-looking statements. All forward looking statements are based on
information currently available to Silence Therapeutics and Silence
Therapeutics assumes no obligation to update any such forward-looking
statements.
SILENCE THERAPEUTICS PLC
UNAUDITED CONSOLIDATED INCOME STATEMENT
YEAR ENDED 31 DECEMBER 2009
2009 2008
GBP GBP
Revenue 1,723,289 2,208,699
Research and development costs (5,073,333) (6,712,032)
Gross loss (3,350,044) (4,503,333)
Administrative expenses (4,204,371) (3,288,304)
Operating loss (7,554,415) (7,791,637)
Finance income 46,104 356,996
Loss for the year before
taxation (7,508,311) (7,434,641)
Taxation credit for the year 37,714 -
------ ---
Loss for the year after
taxation (7,470,597) (7,434,641)
========== ==========
Loss per share (basic and
diluted) (5.55)p (6.20)p
======= =======
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 DECEMBER 2009
2009 2008
GBP GBP
Loss for the year after
taxation (7,470,597) (7,434,641)
Other comprehensive income:
Exchange differences arising on
consolidation of foreign
operations (410,482) 2,654,895
Total comprehensive income for
the year (7,881,079) (4,779,746)
SILENCE THERAPEUTICS PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2009
2009 2008
GBP GBP
Non-current assets
Property, plant and equipment 376,676 535,909
Goodwill 8,130,972 8,611,087
Other intangible assets 736,117 812,696
--------- ---------
9,243,765 9,959,692
--------- ---------
Current assets
Trade and other receivables 560,190 998,702
Tax recoverable 59,198 70,000
Cash and cash equivalents 1,131,146 3,350,187
--------- ---------
1,750,534 4,418,889
--------- ---------
Liabilities - current
Trade and other payables (2,103,144) (934,601)
--------- ---------
(2,103,144) (934,601)
---------- --------
--------- ----------
Net assets 8,891,155 13,443,980
========= ==========
Equity
Share capital 1,350,334 1,199,134
Capital reserves 49,810,071 47,010,414
Translation reserve 2,881,007 3,291,489
Retained loss (45,150,257) (38,057,057)
--------- ----------
Total equity 8,891,155 13,443,980
========= ==========
SILENCE THERAPEUTICS PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AT 31 DECEMBER 2009
Share Capital Translation
capital reserves reserve
GBP GBP GBP
At 1 January 2008 1,198,835 46,465,165 636,594
--------- ---------- -------
Recognition of share-based
payments - 544,158 -
Transfer upon:
-exercise of options in year - (1,687) -
-lapse of vested options in
year - (731) -
Shares issued in the year 299 3,509 -
--- -----
Transactions with Owners 299 545,249 -
Loss for the year ended
31 December 2008 - - -
--- --- ---------
Other Comprehensive Income
Exchange differences arising
on consolidation of foreign
operations - - 2,654,895
--- --- ---------
Total comprehensive income
for the year - - 2,654,895
--- --- ---------
At 31 December 2008 1,199,134 47,010,414 3,291,489
--------- ---------- ---------
At 1 January 2009 1,199,134 47,010,414 3,291,489
--------- ---------- ---------
Recognition of share-based
payments - 661,704 -
Transfer upon:
-exercise of options in year - (4,514) -
-lapse of vested options in
year - (372,883) -
Shares issued in the year 151,200 2,515,350 -
------- --------- ---
Transactions with owners 151,200 2,799,657 -
Loss for the year ended
31 December 2009 - - -
--- --- ---
Other comprehensive income
Exchange differences arising
on consolidation of foreign
operations - - (410,482)
--- --- --------
Total comprehensive income
for the year - - (410,482)
--- --- --------
At 31 December 2009 1,350,334 49,810,071 2,881,007
--------- ---------- ---------
Retained
loss Total
GBP GBP
At 1 January 2008 (30,624,834) 17,675,760
----------- ----------
Recognition of share-based
payments - 544,158
Transfer upon:
-exercise of options in year 1,687 -
-lapse of vested options in
year 731 -
Shares issued in the year - 3,808
--- -----
Transactions with Owners 2,418 547,966
Loss for the year ended
31 December 2008 (7,434,641) (7,434,641)
---------- ----------
Other Comprehensive Income
Exchange differences arising
on consolidation of foreign
operations - 2,654,895
--- ---------
Total comprehensive income
for the year (7,434,641) (4,779,746)
---------- ----------
At 31 December 2008 (38,057,057) 13,443,980
----------- ----------
At 1 January 2009 (38,057,057) 13,443,980
----------- ----------
Recognition of share-based
payments - 661,704
Transfer upon:
-exercise of options in year 4,514 -
-lapse of vested options in
year 372,883 -
Shares issued in the year - 2,666,550
--- ---------
Transactions with owners 377,397 3,328,254
Loss for the year ended
31 December 2009 (7,470,597) (7,470,597)
---------- ----------
Other comprehensive income
Exchange differences arising
on consolidation of foreign
operations - (410,482)
--- --------
Total comprehensive income
for the year (7,093,200) (7,881,078)
---------- ----------
At 31 December 2009 (45,150,257) 8,891,155
----------- ---------
SILENCE THERAPEUTICS PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2009
2009 2008
GBP GBP
Cash flow from operating
activities
Loss before taxation (7,508,311) (7,434,641)
Adjustments for:
Depreciation charges 150,293 116,489
Amortisation charges 220,658 306,916
Loss on sale of property,
plant and equipment 19,577 307
Charge for the year in respect of
Share-based payments 661,704 544,158
Foreign exchange movement 198,717 73,410
Recovery of loan provided for in
previous years - (31,000)
Finance income (46,104) (253,634)
---------- ----------
(6,303,466) (6,677,995)
Decrease in trade and other
receivables 438,512 668,891
Increase/(decrease) in trade and
other payables 1,168,543 (1,032,708)
---------- ----------
Cash (absorbed) by operations (4,696,411) (7,041,812)
Taxation received 48,516 60,000
---------- ----------
Net cash (outflow) from operating
activities (4,647,895) (6,981,812)
---------- ----------
Cash flow from investing
activities GBP GBP
Recovery of loan made in previous
years - 31,000
Finance income 46,104 253,634
Additions to property, plant and
equipment (36,648) (135,584)
Additions to intangible assets (188,494) (135,752)
---------- ----------
Net cash (absorbed by)/generated
from investing activities (179,038) 13,298
-------- ------
Cash flows from financing
activities
Proceeds from issue of share
capital 2,666,550 3,808
--------- -----
Decrease in cash & cash
equivalents (2,160,383) (6,964,706)
========== ==========
Cash and cash equivalents at
start of year 3,350,187 10,174,389
Net decrease in the year (2,160,383) (6,964,706)
Effect of exchange rate
fluctuations on cash held (58,658) 140,504
Cash and cash equivalents at end
of year 1,131,146 3,350,187
========= =========
Cash and cash equivalents
includes
Instant access bank accounts 1,131,146 3,350,187
========= =========
SILENCE THERAPEUTICS PLC
NOTES TO THE UNAUDITED PRELIMINARY ANNOUNCEMENT
YEAR ENDED 31ST DECEMBER 2009
1 GENERAL INFORMATION
1.1 Group Information
Silence Therapeutics ("Silence" or "the Company") and its
subsidiaries (together "the Group") are primarily involved in the
research and development of novel pharmaceutical products. Silence
Therapeutics plc, a public limited company incorporated and
domiciled in England, is the Group's ultimate parent company. The
address of the Company's registered office is: 22 Melton Street,
London NW1 2EP and the principal place of business is The Royal
Institution of Great Britain, 21 Albemarle Street, London W1S 4BS.
1.2 Going concern
The financial statements have been prepared on a going concern basis
that assumes that the group will continue in operational existence
for the foreseeable future.
The group had a net cash outflow for 2009 of 2,160,383 pounds and at
31 December 2009 had cash balances of 1.13m pounds. In early
January 2010, the group acquired Intradigm Corporation and raised
15m pounds (before costs).
The directors have reviewed the working capital requirements of the
group for the next 12 months and are confident that these can be
met. The directors have a reasonable expectation that further
finances will become available during the course of the year through
grants, milestone and licence fee payments, relating to either new
or existing agreements. The directors note that there is a material
uncertainty as to the exact timing and source of these funds and
that the failure to receive sufficient funding from these sources
would cast significant doubt on the Group's ability to continue as a
going concern. The directors have also taken a number of steps to
reduce administration costs and to restrict the research and
development expenditure to core areas pending the availability of
additional funds.
The directors consider that the continued adoption of the going
concern basis is appropriate and the accounts do not reflect any
adjustments that would be required if they were to be prepared on
any other basis.
1.3 The financial information set out above does not constitute
the Company's statutory accounts within the meaning of section 435
of the Companies Act 2006. The 2009 figures are based on unaudited
accounts for the year ended 31 December 2009. The directors
anticipate that the auditor's report, to be issued with the Group's
statutory accounts for the year ended 31 December 2009, will be
unqualified but will contain an emphasis of matter paragraph. This
emphasis of matter paragraph will draw attention to the material
uncertainty which may cast significant doubt about the Group's
ability to continue as a going concern, referred to in note 1.2
above.
The unaudited preliminary announcement has been prepared on the basis
of the accounting policies set out in the Group's statutory accounts
for 2008.
The 2008 comparatives are derived from the statutory accounts for
2008 which have been delivered to the Registrar of Companies and
received an unqualified audit report containing an emphasis of
matter paragraph relating to going concern and did not contain a
statement under the Companies Act 1985, s237(2) or (3).
2. LOSS PER SHARE
The calculation of the loss per share is based on the loss for the
financial year after taxation of 7,470,597 pounds (2008: loss
7,434,641 pounds) and on the weighted average of 134,640,515 (2008:
119,885,617) ordinary shares in issue during the year.
The options outstanding at 31 December 2009 and 31 December 2008 are
considered to be non-dilutive in that their conversion into
ordinary shares would not increase the net loss per share.
Consequently, there is no diluted loss per share to report for
either year.
Phil Haworth, CEO of Silence Therapeutics, +1-650-855-1514, p.haworth at silence-therapeutics.com; or Media, Tim Brons, +1-415-675-7400, tbrons at vidacommunication.com, or Investors, Stephanie Diaz, +1-415-675-7400, sdiaz at vidacommunication.com, both of Vida Communication, or Richard Potts / Jonathan Senior , both of Nomura Code Securities, +44-020 7776 1200, all for for Silence Therapeutics plc
Tags: April 29, London, Silence Therapeutics Plc, United Kingdom
