Epistem's loss deepens on rising R&D costs

UK-based Epistem, a company utilizing contract research revenue to fund the development of novel therapies based on epithelial stem cell research, has increased its loss in the 12 months to June 30, 2008, as development spending exceeded increased contract research turnover.

Revenue was up 50% on the full fiscal year 2007/8, to L2.1 million ($3.6 million). However, this was negated by a 36% increase in contract research expenditure, to $1.5 million, and a 10% increase in discover and development costs, to $1.1 million.

The firm's net loss worsened by 20% to $1.2 million, dipping into its cash and cash equivalent reserves, which were reduced by 12.5% to L2.1 million. However, loss per share improved by 26% to 16.6 pence versus 22.4 pence, as the result of a dilutive L1.1 million share placing, at 163 pence per share last November.