Beleaguered Renovo to sell off remaining assets
DRUG discovery firm Renovo, which scrapped its main Juvista anti-scarring product after poor trial results in February, is looking to sell the rest of its product portfolio.
The Manchester-based firm has already embarked on a redundancy programme which could see 100 staff – nearly all the workforce – and some directors leave the business next month.
In its interim report today the company said: “It is the company’s intention to sell, if possible, all development programmes rather than complete development beyond the current clinical trials.”
Its other products are Adaprev, which is being developed to prevent scar tissue following hand surgery, and Prevascar which also prevents scarring but uses a different mechanism to Juvista. Both are under going trials which will report in the second half of this year and first half of 2012 respectively. It also has Juvidex, a topical treatment for the large cosmetic skin peel market.
In the six months to March 31 revenue jumped to £15.9m from £5.2m, which reflects the remaining balance of the upfront payment received from former Juvista partner Shire in 2007. The company reported pre-tax profits of £4.1m compared to a loss of £7.3m last time.
Renovo still has a cash pile of £44.4m, down from £58m in March 2010. If all 100 staff are made redundant next month it expects to be left with £33m at the end of June.
Chief executive Mark Ferguson said: “I am greatly surprised and saddened by the results of the first Juvista Phase III trial. We must now maximize returns to shareholders and we are actively progressing that strategy. We will update shareholders with our plans following the completion of the statutory consultation period.”
