Losses at Merrion Pharmaceuticals narrowed by 65 per cent in the first-half of this year.
The Irish product-development firm reported a net loss of €0.8 million or €0.05 loss per basic and diluted ordinary shares for the six months ended June 30th, compared to a net loss of €2.3 million or €0.14 loss per share for the same period a year earlier.
The company attributed the decline in losses to primarily due to an increase in revenue, R&D tax credits and a reduction in clinical trial costs.
Merrion said first-half revenues were 63 per cent higher than in the same six=month period last year. Revenues totalled €2.75 million compared to €1.7 million a year earlier.
Over 90 per cent of first half revenues were from trial manufacturing for diabetes specialist Novo Nordisk, which is using Merrion's technology in clinical trail for an oral insulin drug.
"The increase in revenue is a reflection of the high quality service we have delivered to our partners, particularly the two Phase I trials with Novo Nordisk. Over the past six months, huge effort was invested in preparing our new facility for future Merrion operations, and we achieved an Irish Medical Board license to manufacture in July 2010," said the group's chief executive John Lynch.
R&D expenses decreased by 35 per cent to €1.7 million in the first-half of 2010, compared to €2.6 million for the same period last year.
Net finance expense totalled €3,000 for the six months period as against income of €127,000 for the same period last year.
Merrion has cash and equivalents of 5.9m euro to hand.
‘In the next six months, Merrion will expand its early stage pipeline and develop our technology base. We are currently investigating additional products which GIPET could bring to the market and we expect to add a new internal project in the coming months. Our focus on building and maintaining new strategic partners is an ongoing process and we are continuing to pursue new exciting potential complementary collaborations with other pharmaceutical companies," said Mr Lynch.
