Drug development group AGI Therapeutics has reported a loss before tax of $9.28 million for the six months to the end of June while revenues were flat at $0.3 million
Announcings its first-half results this morning the stomach drug specialist, which announced that its lead drug Rezular had failed in large-scale tests, said it spent $7.8 million on research and development in the six month period, as against $8.3 million a year earlier.
It forecast that R&D spend will be significantly lower during the second-half of 2009 following the decision to stop development work on Rezular, a treatment for irritable bowel syndrome.
The group said that following a business review it was intending to switch attention away from gastro-intestinal products towards "drugs where there is an unmet need". It added that its main area of focus will now be the US market, which it said, offered the greatest commercial potential.
“We are pleased to have completed a rigorous business strategy and portfolio review, which provides a realistic route for rebuilding value in our pipeline, using the assets and resources available to us," said CEO John Devane.
"In recent months we have spent considerable time identifying assets that will benefit best from further internal development and those better monetised by out-licensing. Over the next year we will concentrate our efforts on building value based on clinical and other scientific evidence in those indications where we see the greatest value for AGI," he added.
In a separate statement, AGI said that additional analysis of Rezular showed that it offers an effective treatment for chronic diarrhea symptoms, particularly in conditions associated with altered gut motility such as IBS-D.
The group said that in the light of the analysis it will seek an opportunity to discuss the findings with the US Food and Drug Administration (FDA) in the coming months.
