Cantab's 1st Qtr Boosted By Glaxo Wellcome Deal

Cantab Pharmaceuticals of the UK has announced revenues for the firstquarter of 1997 of L5.4 million ($8.8 million), compared with L17,000 a year earlier. The 1997 quarter included a L5 million upfront license fee and initial contract development payments to Cantab from Glaxo Wellcome, resulting from an agreement reached between the two companies during the quarter. Under the terms of this deal GW is granted a license to develop and market Cantab's DISC HSV vaccine for the prevention and treatment of genital herpes (Marketletter March 24).

The completion of the deal with GW resulted in a one-time profit for Cantab of L3.4 million, or 21 pence per share, compared with a loss in the 1996 first quarter of L1.8 million, or 17 pence per share.

Operating expenses for the quarter were L2.5 million, up 25%. The increase resulted in particular from higher R&D expenditure. Cantab expects its operating expenditure to continue to rise as more of its products progress into the later stages of clinical development.