CeNeS hands over office lease to De Novo as part of cost-cutting

CeNeS Pharmaceuticals says it has exchanged contracts to assign itshead office lease in Cambridge to fellow UK group De Novo Pharmaceuticals, with the latter paying L600,000 ($861,180). CeNeS will also receive an amount of L516,000 that was previously held on deposit for the annual rent and will then take a smaller sub-lease for office space from De Novo.

Neil Clark, CeNeS' chief operating officer, said the deal is in line with the company's strategy to reduce cash burn and costs. Recently, it announced plans to restructure as a result of "exceptional global economic circumstances" leading to the increased uncertainty over the ability of the company to raise additional capital over the next 12 months (Marketletter October 8). Since that announcement was made, Mr Clark pointed out, the firm has " taken a number of difficult decisions to ensure that CeNeS is best placed to generate shareholder value going forward."

David Bailey, chief executive at De Novo, was much more upbeat, saying that, following its recent fundraising, which brought in just under L16.8 million (Marketletter August 16), the firm "is entering an exciting period of expansion and is pleased to be able to move speedily into new premises."