Motif Bio losses widen as admin expenses rise

Clinical-stage biopharmaceutical company Motif Bio released its financial results for the year ended 31 December on Tuesday, reporting a net loss of $44.8m, or 19 US cents per share on a basic and diluted basis.

The AIM-traded firm said that compared to a net loss of $40.3m, or 35 cents per share, for the same period in 2016.

It said research and development costs for 2017 were $29.5m, down from $34.8m for 2016, which was put down to to lower clinical research organization costs as a result of the completion of the two iclaprim Phase 3 clinical trials in ABSSSI.

That was partially offset by increases in chemistry, manufacturing and controls costs, employee benefits - including share-based compensation - and other R&D expenses.

General and administrative expenses for 2017 were $8.5m compared to $4.9m for 2016, which the board put down to the costs associated with being a public company in both the United Kingdom and the United States, as well as increases in employee benefits - including non-cash share-based compensation due to an increase in the number of employees - and increases in the costs of outside professional and advisory services.

Motif Bio raised $23.7m of net proceeds through an equity fundraising placed with new and existing investors in the UK, Europe and the US during the period.

Debt financing of $20m was successfully completed, with $15m now having been drawn down.

Gross cash and cash equivalents totalled $22.7m as at 31 December, with the company having 263.5 million ordinary shares outstanding on the same date.

“Motif Bio made tremendous progress in 2017, accomplishing several critical milestones, including announcing positive topline results from two Phase 3 clinical trials with iclaprim in acute bacterial skin and skin structure infections and publishing and presenting important clinical and other data about iclaprim,” said chief executive Dr Graham Lumsden.

“These activities have laid the foundation for success in 2018, when we plan to complete regulatory submissions for iclaprim in both the US and Europe, continue pre-commercialisation activities to increase awareness of iclaprim in the medical community and amongst hospital formulary committees and finalise our commercialisation strategy for the US.

“We look forward to reporting our achievements in the months ahead as we get closer to bringing iclaprim to the market.”