Half-year results for the six months ended 31 January 2024

C4X Discovery Holdings plc

Excellent portfolio progress supported by a robust balance sheet

$11 million preclinical milestone payment by AstraZeneca

C4XD seeks voluntary delisting from the London Stock Exchange AIM

27 March 2024 – C4X Discovery Holdings plc (AIM: C4XD), a pioneering Drug Discovery company, today announces its half-year results for the six months ended 31 January 2024.

Operational Highlights (including post-period events)

  • Announced today: C4XD seeks voluntary delisting from the London Stock Exchange AIM (see separate release)
  • Receipt of $11 million preclinical milestone payment from AstraZeneca under the exclusive worldwide licence agreement worth up to $400 million, for C4XD’s NRF2 Activator programme.
  • α4β7 integrin inhibitor programme for inflammatory bowel disease (“IBD”) delivered compounds showing improved activity at a lower dose compared to example competitor compounds in a pharmacodynamic model after oral dosing. The project is moving towards the selection of a pre-clinical candidate.
  • C4XD internal portfolio expanded in inflammatory diseases with new programmes identified progressing towards Lead Optimisation.
  • Indivior acquired C4XD’s oral Orexin-1 receptor antagonist, C4X_3256 (INDV-2000), for substance use disorder under an asset purchase agreement for £15.95 million.
  • In April 2021, C4XD signed a world-wide exclusive agreement with Sanofi, for an oral pre-clinical IL-17A inhibitor programme worth up to €414 million with first milestone payment of €3 million received in July 2022.
  • MALT-1 inhibitor programme progressing towards candidate shortlist as partnering process ongoing.

Financial Highlights

  • Revenue was £24.6 million (January 2023: £1.7m) reflecting receipt of £15.9 million from sale of Orexin-1 receptor antagonist programme and $11 million milestone payment from AstraZeneca.
  • Total profit after tax of £17.8 million or 7.06 pence per share (January 2023: loss of £3.9m or 1.55 pence per share).
  • R&D expenses remained at £5.2 million (January 2023: £5.2m), reflecting focused investment in key drug discovery programmes focused on immune-inflammatory diseases.
  • Net assets of £24.6 million (January 2023: £13.6m).
  • Net cash as at 31 January 2024: £13.1 million (31 January 2023: £9.6m), before post-period receipt of $11 million milestone payment from AstraZeneca in February 2024.

Dr Clive Dix, Executive Chairman of C4X Discovery, said: C4XD has demonstrated time and again our expertise to discover and develop high value, novel small molecule drugs. We have announced three major deal partnerships with world leading pharmaceutical companies, one of which has since acquired the programme outright demonstrating our scientific and deal-making capabilities. The Company is in a strong financial position with the potential for further milestone payments over the next 18 months. As we progress our lead programme through the discovery phase towards the clinic and with a clear focus on immuno-inflammatory diseases, the Board feel it necessary to address the perceived under-valuation of our business in the public market and the subsequent inability to access the future funding the Board believes is required to allow C4XD to flourish.

“The healthcare sector in the financial markets has proved challenging in recent years and has been further hindered by wider macro and economic events happening worldwide, which have collectively had a negative impact on the valuations of smaller companies in general. At the same time, funding for private companies has continued to remain resilient. The Board has concluded that the current public market valuation does not reflect the underlying potential of our business or our achievements to date and believe that this is unlikely to change in the short-to-medium term. Consequently, the Board believes that C4XD’s growth prospects, and the ability to execute its strategy to develop precision therapeutics in immuno-inflammatory diseases, will be best accomplished as a private company, where we can potentially access a larger quantum of future funding required to accelerate our strategy and drive towards discovery and development inflection points to maximise revenue from our portfolio. We therefore believe that a cancellation of the Company’s admission on AIM is in the best interest for shareholders and for the future of our business as a whole, and we are excited for the road ahead.”

This announcement contains inside information for the purpose of the UK Market Abuse Regulations.

C4X Discovery Holdings plc

Mo Noonan, Communications+44 (0)7876 444 977

Panmure Gordon (UK) Limited (NOMAD and Broker) +44 (0)20 7886 2500

Freddy Crossley, Emma Earl (Corporate Finance)
Rupert Dearden (Corporate Broking)

C4X Discovery Media – ICR Consilium

Mary-Jane Elliott, Chris Gardner, Angela Gray +44 (0)203 709 5700

C4X Discovery (C4XD) is a pioneering Drug Discovery company, combining scientific expertise with cutting-edge technologies to efficiently deliver world‑leading medicines. We have a highly valuable and differentiated approach to Drug Discovery through our enhanced molecular design and patient stratification capabilities, generating small molecule drug candidates across multiple disease indications focused on immuno-inflammation. We are advancing our internal portfolio which ranges from early-stage target opportunities to late-stage Drug Discovery programmes and we have two commercially partnered programmes with Sanofi and AstraZeneca, and one clinical stage candidate which has been acquired by Indivior.

For more information visit us at www.c4xdiscovery.com or follow us on twitter @C4XDiscovery.