E-Therapeutics Plc (LON:ETXP) is focused on driving value in its discovery platform. Costs will be reduced as the 17 product candidates in discovery as of July 2016 have been cut to a core five. Cash of £19.9m and future tax credits of c £6m, along with a reduction in cash burn, should fund ETX through to 2019. Legacy assets ETS6103 and ETS2101 will continue to be wound down with reduced costs; the company will look to out-license both. Validation of the platform is key to driving value and wider recognition; future deals, potentially in 2017, would enable this.
Discovery platform refocused
The stepping down of CEO Malcolm Young initiated a strategic review. The development pipeline was subsequently reduced from 17 product candidates as of July 2016 to a core five, which are in medicinal chemistry. With total costs of c £3m for getting a product candidate clinically ready, we anticipate a significant reduction in costs in FY18 from the streamlined pipeline. Additionally, legacy product candidates ETS6103 and ETS2101 are on hold and ETX will look to out-license both.
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