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SLN Silence Therapeutics Plc

535.00
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Silence Therapeutics Plc LSE:SLN London Ordinary Share GB00B9GTXM62 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 535.00 521.00 524.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Silence Therapeutics PLC Interim results for six months ended 30 June 2018 (3322A)

11/09/2018 7:00am

UK Regulatory


Silence Therapeutics (LSE:SLN)
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TIDMSLN

RNS Number : 3322A

Silence Therapeutics PLC

11 September 2018

Interim results for the six months ended 30 June 2018

11 September 2018

Silence Therapeutics plc, AIM:SLN ("Silence" or "the Company") a leader in the discovery, delivery, and development of novel RNA therapeutics for the treatment of serious diseases, announces its unaudited interim results for the half year to 30 June 2018.

Highlights

-- New leadership in place with the recruitment in July of Dr David Horn Solomon as Chief Executive Officer, an experienced public company biotech CEO, board member and biotech investor.

-- The field is advancing: Gene-silencing as a therapeutic modality was granted its first drug approval by the FDA on 10 August for patisiran, validating RNAi as a class of drugs that now have a clear path to market.

-- Positive regulatory feedback and promising data in clinically validated animal disease models representative of iron overload disorders, increases confidence in Silence's lead candidate SLN124, with the first patient entered into a Phase Ib study anticipated in H2 2019.

-- Out-licenced programme, QPI-1002 for Prevention of Acute Kidney Injury progressed to Phase III clinical trial by partner Quark Pharmaceuticals, Inc.

-- patisiran remains accused of infringement of Silence's Intellectual Property in the United Kingdom and Portugal.

Financial Highlights

-- Loss after tax of GBP8.7 million (2017 H1: GBP5.5 million), reflecting increasing costs associated with the progression of lead programmes SLN124 and SLN226 towards the clinic.

   --     Cash and cash equivalents and term deposits of GBP34.3 million (FY 2017 GBP42.7 million). 
   --     Net cash outflow from operating activities GBP8.8 million (H1 2017: GBP4.4 million). 

Post Half-Year Events

-- Departure of Dr Annalisa Jenkins as Chair on 19 August 2018, having upgraded Silence's R&D operations and successfully reshaped the Company's strategy, with appointment of Dr Andy Richards, CBE, as Interim Chair.

-- Completion of new management review of clinical timelines results in first patient dosing for SLN124 now expected in H2 2019.

Dr David Horn Solomon, Chief Executive Officer of Silence Therapeutics, commented:

"The RNAi space is maturing with the first marketing approval of patisiran from Alnylam. I am excited for the opportunity to build Silence into a leading drug development company in this cutting-edge field of technology. Since joining Silence, I have been impressed by the calibre of our scientists and developers, our growing pipeline, our innovative technology platform and the commercial opportunities that these present."

"In the coming months, we will apply for Orphan Drug designation for our clinically validated lead medicine candidate, SLN124, for the treatment of Beta-Thalassemia, in order to expedite progress towards a Phase Ib trial planned to begin in H2 2019. Whilst also advancing the development of our other pipeline of product candidates, we are targeting validating Business Development deals and continue to explore a range of financing options."

Dr Andy Richards, CBE, Interim Chair of Silence Therapeutics, commented:

"This has been a transformational period for Silence, with the recent recruitment of Dr David Horn Solomon as CEO, who brings extensive biotech industry leadership experience with an international track record of successful pipeline delivery, financing and deal making. At the Board level, we have also been delighted to welcome Dave Lemus who brings further expertise in commercialisation and strategic partnerships, as well as financing and transactions, especially in the US. I will serve as Interim Chair to ensure a smooth transition period to a new Chair, following the successful completion of the changes that have provided Silence with such a clear and well-directed strategy."

Enquiries:

 
 Silence Therapeutics plc                          Tel: +44 (0) 20 3457 
  Dr David Horn Solomon, Chief Executive Officer                   6900 
  Dr Andy Richards, CBE, Interim Chair 
  David Ellam, Chief Financial Officer 
 Peel Hunt LLP (Nominated Adviser and Broker)      Tel: +44 (0) 20 7418 
  James Steel/ Oliver Jackson                                      8900 
 European IR                                       Tel: +44 (0) 20 3709 
  Consilium Strategic Communications                               5700 
  Mary-Jane Elliot/ Angela Gray 
  silencetherapeutics@consilium-comms.com 
 US IR                                                Tel: +1 (212) 213 
  Burns McClellan                                                  0006 
  Lisa Burns, John Grimaldi, Jill Steier 
  Silence.Therapeutics@burnsmc.com 
 

About Silence Therapeutics plc

Silence Therapeutics is developing a new generation of medicines by harnessing the body's natural mechanism of RNA interference, or RNAi, within its cells. Its proprietary technology can selectively inhibit any gene in the genome, specifically silencing the production of disease-causing proteins. Using its enabling delivery systems, it has achieved an additional level of specificity by delivering its therapeutic RNA molecules exclusively to target cells. Silence's proprietary RNA chemistries and delivery systems are designed to improve the stability of our molecules and enhance effective delivery to target cells, providing a powerful modular technology well suited to tackle life-threatening diseases. For more information, please visit: https://www.silence-therapeutics.com/

Chief Executive's Report

Overview

The FDA approval of patisiran demonstrates that, after 20 years of development, the RNAi class of medicines is a now a therapeutic reality. Silence has a renewed vision with new leadership, new management and a focussed strategy to pursue our development opportunities. With a broad and growing pipeline of candidate medicines in a number of therapeutic areas and a robust financial position, the company is well-positioned to grow and to maximise the potential of its GalNAc-based siRNA platform.

Management and Board alignment

Important appointments have been made recently, strengthening and aligning the senior management and Board of Silence. In June, Ali Mortazavi stepped down as CEO having served the company for six years. Newly appointed CEO, Dr David Horn Solomon, formerly served as CEO of Zealand Pharma A/S from 2008 to 2015. Under David's leadership the company went public on NASDAQ and its lead product, Adlyxin(R), a GLP-1 receptor agonist for the treatment of type II diabetes, was approved in the US and globally and is now marketed by Sanofi as a monotherapy and in combination with Lantus(R) as Soliqua(R). Having held senior management roles in both the US and Europe, David brings extensive international leadership experience in the biotech industry with a track record of successful pipeline delivery, financing and deal making.

Dave Lemus joined the Board of Directors in June as Non-Executive Director, bringing a track record and proven leadership in building and managing high performance management teams. In August, Dr Annalisa Jenkins left her role as Chair, with Dr Andy Richards assuming the role of non-executive Chair in an interim capacity to ensure a smooth transition. In June, the appointment of Richard Jenkins as Head of Clinical Development was also announced. Richard has over 28 years' experience in clinical development and drug discovery and will be heading the clinical development function as Silence advances its lead asset through the clinic.

Pipeline

RNAi is now an approved class of medicines, and Silence's two lead programmes, SLN124 and SLN226, both have robust animal model data supporting progression to clinical trials in H2 2019 and 2020, respectively. Management remains fully committed to progressing these candidates to the clinic. Following the submission of the SLN124 Briefing Document to the UK Medicines and Healthcare products Regulatory Agency, positive feedback was received at the June Scientific Advice Meeting. The first in-human study for SLN124, for the treatment of patients with Beta-Thalassemia and Myelodysplastic Syndrome, will be a Phase Ib trial. Silence will examine a variety of end points suggested by animal models as markers of efficacy to inform the clinical trial approach, and in order to seek the best possible results for patients and their caregivers.

Silence is pursuing additional therapeutic opportunities selected in a risk-diversified manner, focusing on indications with high unmet need where the Company's therapies can make a dramatic difference to patients. To this end, four new indications were added to the pipeline in H1 2018, including for the treatment of rare renal and rare metabolic conditions. Silence will continue to develop treatments both for rare and non-rare conditions, periodically assessing options and seeking strategic partnerships for the larger markets.

External partnerships

Silence's foundational IP has already been validated through out-licensing to Quark Pharmaceuticals, Inc ("Quark"), and future licensing agreements are anticipated. In July 2018, Quark announced the first patient dosed in the phase III clinical trial of QPI-1002 for prevention of Acute Kidney Injury (AKI) following cardiac surgery. The product is exclusively partnered with Novartis, who have an option for worldwide development and commercialisation in AKI. Novartis also has an option on QPI-1002 in Delayed Graft Function for which a Phase III study is ongoing, with Quark stating that first interpretative results are expected in Q4 2018.

Strong Intellectual Property

Technology innovation is key to remaining at the forefront of disruptive new treatment modalities such as RNAi, and this is underpinned by intellectual property (IP). In recent years GalNAc conjugates have become the main accepted and clinically validated technology for optimised stability, delivery, targeting, specificity and efficacy of RNAi.

In 2018, Silence continued to strengthen its overall patent estate, and protection of its GalNAc siRNA IP in particular, by filing additional patent applications for several lead sequences, several linker chemistries, multiple RNAi constructs and rules for chemical modification. Silence believes that several granted patent claims protecting its proprietary chemical modification technology are relevant to third-party RNAi medicines and that, more generally, its foundational IP underpins the RNAi field. As part of Silence's determination to enforce its patent estate against potential infringers, litigation in the UK and Portugal is ongoing against Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) ("Alnylam"). The UK litigation is proceeding towards a trial in the High Court in London beginning on, or around, 10 December 2018. While Silence continues to develop further innovation and to protect its rights and inventions, the Company remains focused on executing its core business of drug discovery and development to continue to build its therapeutic pipeline.

Outlook

With the management team led by Dr David Horn Solomon, complemented by a supportive and highly experienced Board, Silence has a closely aligned leadership team well-equipped to grow the Company. Silence has a strong cash position to drive the value of its platform technology and therapeutic portfolio and continues to explore a range of financing options.

Our programmes

A core focus is the development of our proprietary clinical-stage RNA therapeutics, having developed a broad pipeline of product candidates in a number of therapeutic areas.

SLN124

-- SLN124 represents a highly promising therapeutic candidate medicine for patients with iron overload disorders, such as Beta-Thalassemia and Myelodysplastic syndrome (MDS)

-- Positive feedback received from June Scientific Advice meeting with the UK MHRA, following the submission of the SLN124 Briefing Document

   --     Orphan designation application to be filed for Beta-Thalassemia in H2 2018 

-- Clinical development is progressing SLN124 towards a CTA filing for a First in Human study for both Beta-Thalassemia and MDS indications, with the first patient entered into the Phase Ib study anticipated in H2 2019

SLN226

-- SLN226 has the potential to aid abstinence in alcohol dependent patients. With its unique mode of action, it provides a significantly improved therapeutic option due to its high target specificity and long duration of action

   --     Currently in preclinical development with plans to enter clinical development in 2020 

Other indications

   --     Four new target indications added to the pipeline in H1 2018 
   --     Pre-clinical models of cardiovascular disease efficacy scheduled for H2 2018 

Out-licensed programmes

We have out-licensed our siRNA stabilisation chemistry technology (AtuRNAi(TM)) to Quark Pharmaceuticals, who are progressing two drug candidates using this technology in late-stage clinical trials.

Delayed Graft Function

-- The Quark drug received Orphan Drug Designation from the US Food and Drug Administration (FDA) and European Medicines Agency (EMA) and Fast Track designation by the FDA for the DGF indication

-- Quark completed dosing of 594 patients in a Phase III study for delayed graft function (DGF) following kidney transplantation in January 2018, with first interpretative results anticipated in Q4 2018

Acute Kidney Injury

-- On 9(th) July, Quark Pharmaceuticals, Inc announced its first patient dosed in the Phase III clinical trial of QPI-1002 for prevention of Acute Kidney Injury (AKI) following cardiac surgery

-- The Phase III study will enrol approximately 1,038 subjects at high risk for AKI following cardiac surgery at 115 sites globally

Silence is eligible to receive 1.5%-4% royalties from Quark plus milestones, or 15% royalties on the clinical, regulatory and commercial milestone payments and royalties received by Quark from its partner Novartis.

Financial review

Operating expenses

Research & Development Expenses

Research and development expenses increased by GBP1.4 million to GBP5.2 million for H1 2018 (H1 2017:

GBP3.8 million). Contract Research Organisation and R&D consulting costs increased by GBP2.1 million to GBP2.9 million for H1 2018 (H1 2017: GBP0.8 million), reflecting increasing costs associated with the progression of lead programmes SLN124 and SLN226 towards CTA filings. This increase was offset by payroll related costs, which decreased by GBP0.6 million to GBP1.0 million in H1 2018 (H1 2017: GBP1.6 million), driven mainly by headcount reduction in H1 2017. Material costs remained steady at GBP0.4 million in H1 2018 (H1 2017: GBP0.4 million).

General and Administration Expenses

General and administration expenses increased by GBP1.7 million to GBP4.7 million for H1 2018 (H1 2017: GBP3.0 million). Payroll related costs increased by GBP0.2 million to GBP2.1 million in H1 2018 (H1 2017: GBP1.9 million) following investment in key permanent hires. Legal fees increased by GBP1.2 million to GBP1.5 million (H1 2017: GBP0.3 million), reflecting our commitment to defending our IP and securing the appropriate value from this IP.

Disposal of available-for-sale financial assets

In January 2018, the Company announced the disposal of the final tranche of Arrowhead Pharmaceuticals shares with cumulative proceeds of $24.7 million. The gain realised on disposal of these available-for-sale financial assets in H1 2018 is GBP0.2 million (H1 2017: nil; Full Year 2017 GBP9.1 million).

Cash flows

The Group continues to maintain a strong cash position, with cash and cash equivalents and term deposits at 30 June 2018 of GBP34.3 million (30 June 2017: GBP29.8 million; 31 December 2017: GBP42.7 million). The net decrease in cash and cash equivalents, including the effect of exchange rate fluctuations on cash held, was GBP13.4 million for H1 2018. Of this, GBP5.0 million was invested in a term deposit with an original maturity date of 6 months.

Taxation

During H1 2018 we recognised a GBP1.1 million current tax asset in respect of R&D tax credits (H1 2017: GBP1.1 million). Additionally, an estimated GBP1.8 million is receivable relating to 2017 R&D expenditure.

Principal risks and uncertainties

The principal risks and uncertainties facing the Group are set out in the 2017 Annual Report which is available on our website, www.silence-therapeutics.com. The Board does not believe that the risks and uncertainties set out in that Annual Report have changed.

 
                                       Consolidated income statement - unaudited 
                                                  6 months ended      Year ended 
                                                ------------------ 
                                                 30 June   30 June   31 December 
                                                    2018      2017          2017 
                                                 GBP000s   GBP000s       GBP000s 
----------------------------------------------  --------  --------  ------------ 
 Revenue                                               -        16            16 
 Research and development costs                  (5,212)   (3,817)       (7,943) 
 General & administration expenses               (4,681)   (3,021)       (6,464) 
 Operating loss                                  (9,893)   (6,822)      (14,391) 
 Realised gain on disposals of 
  available-for-sale financial assets                163         -         9,066 
 Reclassification of foreign exchange 
  gains on liquidation of overseas 
  subsidiary                                           -         -         1,344 
 Finance and other (expenses) / 
  income                                            (57)       166           206 
 Loss for the period before taxation             (9,787)   (6,656)       (3,775) 
 Taxation                                          1,100     1,140         2,157 
 Loss for the period after taxation              (8,687)   (5,516)       (1,618) 
----------------------------------------------  --------  --------  ------------ 
 Loss per ordinary share (basic 
  and diluted)                                   (12.4p)    (7.9p)        (2.3p) 
 Consolidated statement of comprehensive income - unaudited 
                                                  6 months ended      Year ended 
                                                ------------------ 
                                                 30 June   30 June   31 December 
                                                    2018      2017          2017 
                                                 GBP000s   GBP000s       GBP000s 
----------------------------------------------  --------  --------  ------------ 
 Loss for the period after taxation              (8,687)   (5,516)       (1,618) 
 Other comprehensive expense, net 
  of tax - Items that may subsequently 
  be reclassified to profit & loss: 
 Foreign exchange differences arising 
  on consolidation of foreign operations            (25)       320           404 
 Reclassification of foreign exchange 
  gains on liquidation of overseas 
  subsidiary                                           -         -       (1,344) 
 Fair value movements on available-for-sale 
  financial assets                                     -     (783)         9,104 
 Reclassification of fair value 
  movements on disposal of available-for-sale 
  financial assets                                 (156)         -       (9,066) 
----------------------------------------------  --------  --------  ------------ 
 Total other comprehensive (expense)/income 
  for the period                                   (181)     (463)         (902) 
----------------------------------------------  --------  --------  ------------ 
 Total comprehensive expense for 
  the period                                     (8,868)   (5,979)       (2,520) 
----------------------------------------------  --------  --------  ------------ 
 

Consolidated balance sheet - unaudited

 
                                                                    31 December 
                                      30 June 2018   30 June 2017          2017 
                                           GBP000s        GBP000s       GBP000s 
-----------------------------------  -------------  -------------  ------------ 
 Non--current assets 
 Property, plant and equipment                 982          1,346         1,170 
 Goodwill                                    8,009          7,944         8,029 
 Other intangible assets                        18             37            28 
 Available-for-sale financial                    -          8,555             - 
  assets 
 Other receivables                             233            233           233 
-----------------------------------  -------------  -------------  ------------ 
                                             9,242         18,115         9,460 
 Current assets 
 Trade and other receivables                 1,136            601           733 
 R&D tax credit receivable                   2,850          2,740         1,750 
 Investments held for sale                       -              3             - 
 Available-for-sale financial 
  assets                                         -              -           319 
 Six-month term deposit                      5,000              -             - 
 Cash and cash equivalents                  29,336         29,849        42,745 
-----------------------------------  -------------  -------------  ------------ 
                                            38,322         33,193        45,547 
 Current liabilities 
 Trade and other payables                  (3,603)        (2,768)       (2,657) 
-----------------------------------  -------------  -------------  ------------ 
 Total assets less current 
  liabilities                               43,961         48,540        52,350 
-----------------------------------  -------------  -------------  ------------ 
 Net assets                                 43,961         48,540        52,350 
-----------------------------------  -------------  -------------  ------------ 
 Capital and reserves attributable 
  to the owners of the parent 
 Share capital                               3,504          3,499         3,500 
 Capital reserves                          163,517        163,751       163,215 
 Translation reserve                         2,038          3,323         2,063 
 Retained loss                           (125,098)      (122,033)     (116,428) 
-----------------------------------  -------------  -------------  ------------ 
 Total equity                               43,961         48,540        52,350 
-----------------------------------  -------------  -------------  ------------ 
 

Consolidated statement of changes in equity - unaudited

six months ended 30 June 2018

 
 
                                                    Share     Capital   Translation   Accumulated 
                                                  Capital    Reserves       Reserve        Losses     Total 
                                                  GBP000s     GBP000s       GBP000s       GBP000s   GBP000s 
 At 1 January 2018                                  3,500     163,215         2,063     (116,428)    52,350 
 Recognition of share-based 
  payments                                              -         388             -             -       388 
 Lapse of vested options in 
  period                                                -       (128)             -           128         - 
 Options exercised in the period                        -        (45)             -            45         - 
 Proceeds from shares issued                            4          87             -             -        91 
 Transactions with owners recognised 
  directly in equity                                    4         302             -           173       479 
----------------------------------------------  ---------  ----------  ------------  ------------  -------- 
 Loss for six months                                    -           -             -       (8,687)   (8,687) 
 Other comprehensive income 
 Exchange differences arising 
  on consolidation of foreign 
  operations                                            -           -          (25)             -      (25) 
 Reclassification of fair value 
  movements on disposal of available-for-sale 
  financial assets                                      -           -             -         (156)     (156) 
----------------------------------------------  ---------  ----------  ------------  ------------  -------- 
 Total comprehensive expense 
  for the period                                        -           -          (25)       (8,843)   (8,868) 
 At 30 June 2018                                    3,504     163,517         2,038     (125,098)    43,961 
----------------------------------------------  ---------  ----------  ------------  ------------  -------- 
 
 year ended 31 December 2017 
                                                    Share     Capital   Translation   Accumulated 
                                                  Capital    Reserves       Reserve        Losses     Total 
                                                  GBP000s     GBP000s       GBP000s       GBP000s   GBP000s 
----------------------------------------------  ---------  ----------  ------------  ------------  -------- 
 At 1 January 2017                                  3,490     163,641         3,003     (115,950)    54,184 
----------------------------------------------  ---------  ----------  ------------  ------------  -------- 
 Recognition of share-based 
  payments                                              -         638             -             -       638 
 Lapse of vested options in 
  period                                                -     (1,015)             -         1,015         - 
 Options exercised in the period                        -        (87)             -            87         - 
 Proceeds from shares issues                           10          38             -             -        48 
----------------------------------------------  ---------  ----------  ------------  ------------  -------- 
 Transactions with owners recognised 
  directly in equity                                   10       (426)             -         1,102       686 
----------------------------------------------  ---------  ----------  ------------  ------------  -------- 
 Loss for year                                          -           -                     (1,618)   (1,618) 
 Other comprehensive income 
 Exchange differences arising 
  on consolidation of foreign 
  operations                                            -           -           404             -       404 
 Reclassification of foreign 
  exchange gains on liquidation 
  of overseas subsidiary                                -           -       (1,344)             -   (1,344) 
 Fair value movements on available-for-sale 
  financial assets                                      -           -             -         9,104     9,104 
 Reclassification of fair value 
  movements on disposal of available-for-sale 
  financial assets                                      -           -             -       (9,066)   (9,066) 
----------------------------------------------  ---------  ----------  ------------  ------------  -------- 
 Total comprehensive expense 
  for the year                                          -           -         (940)       (1,580)   (2,520) 
----------------------------------------------  ---------  ----------  ------------  ------------  -------- 
 At 31 December 2017                                3,500     163,215         2,063     (116,428)    52,350 
----------------------------------------------  ---------  ----------  ------------  ------------  -------- 
 
 

Consolidated cash flow statement - unaudited

 
                                                      6 months ended      Year ended 
                                                   ------------------- 
                                                     30 June   30 June   31 December 
                                                        2018      2017          2017 
                                                     GBP000s   GBP000s       GBP000s 
-------------------------------------------------  ---------  --------  ------------ 
 Cash flow from operating activities 
 Loss before tax                                     (9,787)   (6,656)       (3,775) 
 Depreciation charges                                    185       189           414 
 Amortisation charges                                      8         9            19 
 Charge for the period in respect of 
  share-based payments                                   388       288           638 
 Realised gain on disposal of available-for-sale 
  financial assets                                     (163)         -       (9,066) 
 Reclassification of foreign exchange 
  gains on liquidation of overseas subsidiary              -         -       (1,344) 
 Finance and other expense/(income)                       57     (166)         (206) 
 Impairment of investment                                  -         -             3 
 (Increase)/Decrease in trade and other 
  receivables                                          (403)       796           664 
 Increase in trade and other payables                    946     1,158         1,047 
-------------------------------------------------  ---------  --------  ------------ 
 Cash spent on operations                            (8,769)   (4,382)      (11,606) 
-------------------------------------------------  ---------  --------  ------------ 
 Corporation tax credits received                          -         -         2,007 
-------------------------------------------------  ---------  --------  ------------ 
 Net cash outflow from operating activities          (8,769)   (4,382)       (9,599) 
-------------------------------------------------  ---------  --------  ------------ 
 Cash flow from investing activities 
 Acquisition of financial assets available 
  for sale                                                 -   (4,921)       (4,921) 
 Disposal of financial assets available 
  for sale                                               320         -        18,123 
 Purchase of six-month term deposit                  (5,000) 
 Interest received/(paid)                                  4         4          (15) 
 Purchase of property, plant and equipment                 -     (118)         (173) 
 Net cash (outflow)/inflow from investing 
  activities                                         (4,676)   (5,035)        13,014 
-------------------------------------------------  ---------  --------  ------------ 
 Cash flow from financing activities 
 Proceeds from issue of share capital                     91        48            48 
 Net cash inflow/(outflow) from financing 
  activities                                              91        48            48 
-------------------------------------------------  ---------  --------  ------------ 
 (Decrease)/increase in cash and cash 
  equivalents                                       (13,354)   (9,369)         3,463 
-------------------------------------------------  ---------  --------  ------------ 
 Cash and cash equivalent at start 
  of period                                           42,745    39,012        39,012 
 Net decrease in the period                         (13,354)   (9,369)         3,463 
 Effect of exchange rate fluctuations 
  on cash held                                          (55)       206           270 
-------------------------------------------------  ---------  --------  ------------ 
 Cash and cash equivalent at end of 
  period                                              29,336    29,849        42,745 
-------------------------------------------------  ---------  --------  ------------ 
 

Notes to the financial statements

six months ended 30 June 2018

1. Basis of Preparation and Accounting Policies

These condensed consolidated interim financial statements for the six months ended 30 June 2018 have been prepared in accordance with IAS 34 - 'Interim Financial Reporting' as adopted by the European Union. The accounting policies adopted are consistent with those of the financial statements for the year ended 31 December 2017.

This condensed consolidated interim financial information has been neither reviewed nor audited. The interim financial statements do not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. The comparative figures for the six months ended 30 June 2017 are not the Company's statutory accounts for that financial period. The 2017 full year accounts have been reported on by the Company's auditors and delivered to the Registrar of companies. The report of the auditors was unqualified and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

IFRS 15 was implemented by the Group on 1 January 2018. This has not had a material impact for the Group.

IFRS 9 was implemented by the Group on 1 January 2018. This has not had a material impact on the accounting for financial instruments held by the Group.

2. Going concern

The financial statements have been prepared on a going concern basis that assumes that the Company will continue in operational existence for the foreseeable future.

During the period, the Company met its day-to-day working capital requirements through existing cash resources. The Company had a net decrease in the cash and cash equivalent in the period ended 30 June 2018 of GBP13.4 million and at 30 June 2018 had cash balances of GBP29.3 million plus a six-month term deposit of GBP5.0 million. The Directors have reviewed the working capital requirements of the Company for the next 12 months from the date of the approval of these interim financial statements and are confident that these can be met.

3. Segment reporting

In the six months ended 30 June 2018, the Group operated in the specific technology field of RNA therapeutics.

Business segments

The Group has identified the Chief Executive Officer as the Chief Operating Decision Maker ("CODM"). The CODM determined the Group had one business segment, the development of RNAi based medicines. This is in line with reporting to the Executive Committee and senior management. The information used internally by the CODM is the same as that disclosed in the Financial Statements.

 
                                        UK   Germany         Total 
Non--current assets                GBP000s   GBP000s       GBP000s 
-------------------------  ---------------  --------  ------------ 
As at 30 June 2018                     550     8,692         9,242 
-------------------------  ---------------  --------  ------------ 
As at 30 June 2017                   9,200     8,915        18,115 
-------------------------  ---------------  --------  ------------ 
As at 31 December 2017                 611     8,849         9,460 
-------------------------  ---------------  --------  ------------ 
                                6 months ended            Year ended 
                          -------------------------- 
                                   30 June   30 June     31 December 
                                      2018      2017            2017 
------------------------ 
 Revenue Analysis                  GBP000s   GBP000s         GBP000s 
------------------------  ----------------  --------  -------------- 
 Research collaboration                  -        16              16 
 
 

The country of registration of the single fee-paying party is the USA. The revenue was billed and received in US Dollars.

4. Loss per share

The loss per share is based on the loss for the period after taxation attributable to equity holders of GBP8.69 million (year ended 31 December 2017 - loss GBP1.62 million; six months ended 30 June 2017 - loss GBP5.52 million) and on the weighted average of 70,033,448 ordinary shares in issue during the period (year ended 31 December 2017 - 69,924,558; six months ended 30 June 2017 - 69,876,568).

The options outstanding at 30 June 2018, 31 December 2017 and 30 June 2017 are considered to be non-dilutive in that their conversion into ordinary shares would decrease the net loss per share. Consequently, there is no diluted loss per share to report for the periods reported.

5. Taxation

A GBP1.10 million current tax asset was recognised in respect of research and development tax credits in the six months ended 30 June 2018 (six months ended 30 June 2017: GBP1.14 million).

6. Related party transactions

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. There are no other related party transactions which would require disclosure.

A PDF version of this announcement including pipeline graphics can be found here:

http://www.rns-pdf.londonstockexchange.com/rns/3322A_1-2018-9-10.pdf

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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