Argenta swings to L8.9M profit in FY 2007

UK-based drug development firm Argenta Discovery's total revenue for the year ended March 31, 2007, was L23.5 million ($46.0 million), representing 270% growth over the previous financial year, despite the fact that R&D investment in proprietary programs reached L5.4 million versus L3.3 million.

During the period, operating profit for the group totaled L8.9 million vs a loss of L6.4 million, as chronic obstructive pulmonary disorder severe asthma therapy ADC4022 successfully completed Phase I trials. Partnered respiratory programs with AstraZeneca, Domantis, GlaxoSmithKline and Dr Reddy's all continue to make good progress, according to a company statement. The firm's contract research income including partnered respiratory programs rose 35% to L8.6 million, with a year-end cash position of L12.1 million vs L4.3 million. Argenta says it now has a pipeline of six respiratory projects in preclinical/clinical development.

Looking ahead, Chris Ashton, Argenta's chief executive, stated that the significant revenue growth during this reporting period and strong cash position at the end of the year "will allow us to fund our portfolio of programs into the clinic as far as Phase IIa proof-of-concept without the need for further fund raising. 2007/8 has started strongly and we forecast recording our highest ever turnover (excluding upfront payments from partnering) and being cash neutral or cash positive for the year despite our increased investment in R&D and progression into the clinic of a number of our programs."