Losses at AGI narrow as R&D costs are halved

14 Apr 2010

Dublin-listed specialty pharmaceutical firm AGI Therapeutics has reported a reduction in its net loss in 2009 to US$10.6m, against the US$18.2m loss reported in 2008.

The company cut its R&D spend by almost half in 2009 to US$8.3m, compared to the US$15.9m spent in 2008.

In September 2009, AGI announced a new business strategy, focusing on the development of specialty products for unmet medical needs. In particular, it said it intended to pursue products in specialty niche or ‘orphan’ designated markets.

The group also last year terminated its programme to develop its Rezular irritable bowel syndrome programme due to disappointing trial results. However, it has now begun pre-clinical evaluation of Rezular in a new, non-gastrointestinal (GI) therapeutic area.

The company also said that it had focused on cutting its costs in 2009, to the extent that at the end of the year it had a cash balance of US$12m. This sum will be invested in AGI’s new development pipeline, it said.

“While 2009 proved to be a very difficult year for AGI, we have successfully resized our operations and are implementing a strategy to rebuild our pipeline. While we have yet to announce the details of our new product pipeline, we have already identified a number of attractive opportunities on which we are undertaking rigorous technical and commercial due diligence, and believe this will result in a valuable  pipeline of products that will re-build value in our business,” said AGI chief executive Dr John Devane.

Article courtesy of Businessandleadership.com

Photo: AGI Therapeutics has reported a reduction in its net loss in 2009 to US$10.6m