Vanguard Medica Ahead Of Schedule At End Of 1996

Vanguard Medica of the UK made substantial progress in 1996, "amilestone year," according to Robert Mansfield, the firm's chief executive. The year was marked by Vanguard's successful flotation on the London Stock Exchange, bringing in L46.4 million ($74.2 million) - believed to be the largest amount to be raised in the biopharmaceutical sector at an Initial Public Offering, and by the firm's clinical program being ahead of schedule at year-end.

In 1996, Vanguard recorded its first operating revenues of L600,000 as a result of a milestone payment from one of its collaborative partners. The firm's net loss on ordinary activities was L10.95 million, compared with L3.66 million in 1995. This figure was at the upper end of expectations, and reflects the increased expenditure on R&D to L12.37 million, from L3.56 million a year earlier.

Peter Worrall, Vanguard's financial director, pointed out that the firm has compounds coming through to the later stages of clinical development, and added that investment is also being made in manufacturing as this is scaled up for some products. The firm's operating cash burn in 1996 was L9.72 million, compared with L3.35 million in the previous year. Net assets at year-end were L49.33 million and cash was L51.8 million; Mr Worrall commented that the firm has not yet touched the proceeds of the flotation.