17 March, 2020
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Results for the year ended 31 January 2020

Additional commercial deals announced and continued innovation of network-driven discovery platform capabilities.

e-therapeutics plc (AIM: ETX, "e-therapeutics"), the drug discovery company, announces its unaudited preliminary full year results for the year ended 31 January 2020. The Annual Report for the year ended 31 January 2020, including the audited full year results and Auditor's Report, will be posted to shareholders on 31 March 2020.

Highlights

POST YEAR-END ANNOUNCEMENT OF BOARD CHANGES AND £1.6M FUNDRAISE

  • On 11 February 2020 we announced that Ali Mortazavi had been appointed as Executive Chairman, replacing Iain Ross, who stood down as Non-Executive Chairman
  • In addition, Ray Barlow stood down as Chief Executive Officer and Steve Medlicott stood down as Chief Financial Officer, with Michael Bretherton being appointed as Non-Executive Director to replace Christine Soden who also stood down from the Board
  • On the same date e-therapeutics announced it had carried out a placing of 53,302,355 new ordinary shares to raise gross proceeds of £1.6 million

SECURED ADDITIONAL COMMERCIAL DEAL FOR OUR NETWORK-DRIVEN DRUG DISCOVERY TECHNOLOGY ("NDD")

  • Positive progress made on commercial research collaboration deal with Novo Nordisk announced in the prior year
  • Secured a further deal with a top five Global biopharma company in a specific area of neurodegeneration
  • Business development activities continue with a number of discussions progressing on a range of revenue-generating and value-creating deals

LAUNCHED OUR NEW GENOME-ASSOCIATED INTERACTION NETWORKS ("GAINs") TECHNOLOGY AND SECURED FIRST GAINs COMMERCIAL DEAL

  • Successfully launched our new GAINs technology, offering a revolutionary and entirely novel proprietary functional genomics approach
  • GAINs technology analyses human genetic data to allow a deep understanding of disease mechanisms and creates the potential to discover novel drugs, diagnostics and biomarkers in a way not possible using existing techniques
  • Announced our first GAINs commercial deal with Novo Nordisk, looking at intervention strategies in their core area of type-2 diabetes

INNOVATION IN OUR CORE PLATFORM TECHNOLOGIES CONTINUES TO ENHANCE HOW WE CAN TRANSFORM DRUG DISCOVERY

  • As well as the launch of our GAINs technology during the year, we continue to enhance our NDD technology and diversify how our core platform can help to revolutionise the treatment of complex diseases
  • Our work on network-aware disease segmentation uses multi-omics data to identify sub-mechanisms of disease against which new and differentiated strategies can be developed to benefit specific patient subsets
  • Application of NDD target identification, deconvolution and Mechanism of Action ("MoA") analysis in complex diseases addresses highly industry-relevant challenges for medicinal chemistry projects

Financial highlights

  • Revenues of £0.5m (FY19: £0.04m)
  • Cash at 31 January 2020 of £3.8m (FY19: £5.9m)
  • Cash reduction in the year of £2.1m (FY19: £3.7m)
  • Operating loss of £2.9m (FY19: loss of £5.1m)
  • R&D tax credit of £0.5m (FY19: £1.1m)

I joined the Board of e-therapeutics in February 2020 after undertaking significant due diligence over several months under a non-disclosure agreement during the financial year under review. I was extremely impressed with the Company and with what has been achieved, both in terms of technological innovation and potential business development opportunities with big pharma and biotechnology companies, by a small, dedicated team. I believe that e-therapeutics can offer the industry unique biological insights into complex disease and can ultimately make major advancements into the discovery of novel biology and drug candidates. I look forward to working closely with the team to align the direction that we see the Company taking as we add significant resource to continue with enhancements to our platform and internal discovery projects.

Ali Mortazavi

Executive Chairman