Biotechnology and life sciences company ValiRx plc (AIM:VAL) saw its shares bounce on Monday morning, as the company booked a rise in placings and reduced costs during the six month period ended June 30 2020.
The company noted that it raised £1.4 million in its share placings, up from £1.2 million for the previous first half period in 2019. Most notable, however, were the company’s cost reductions, with R&D costs down from £207,000 to £100,000 year-on-year, and administrative expenses falling from £865,000 to £792,000 during the same comparison.
The company did note a £118,000 loss on the disposal of FitBio and Trac, and in turn a total comprehensive loss of £805,000, widening from £751,000 for H1 2019. However, its losses before income tax narrowed from £927,000 to £885,000 year-on-year, while shareholders’ loss per share fell from 13.57p to 4.43p.
Also positive is that the company’s cash position at period end was positive £259,000, up from £171,000 at the end of the previous first half.
Commenting on the results, company Non-Executive Chairman Dr Kevin Cox commented:
“Throughout the reporting period, ValiRx experienced a number of significant changes, including changes to the Board, the management team, the underlying cost base and the long-term strategy. Having raised additional funds, the Company is now in a strong position to continue development of existing products and create a pipeline of novel compounds for further development and partnering. I look forward to working with the Board to continue building value in the Company and delivering on the mission of developing innovative medicines to improve the lives of patients.”
Following the news, ValiRx shares bounced 12.00% or 24.70p, to 28.00p per share 12:00 GMT 07/09/20. This price represents a 24.44% jump from the share price one year ago on this day. The company currently has a market cap of £16.13 million.