Reserves shrink as Renovo’s research continues

RENOVO, the pioneering North West bio-pharma group, is continuing to plough its reserves into the development of drugs that reduce scarring and speed up healing.

Ahead of its annual general meeting today the company said cash reserves were down by £5.4m to £59.9m during the three months to December 31.

The Manchester company has previously forecast annual costs of £15m-£20m in the coming years.

It is planning on having £25m-£30m in the bank when it reports the first European trials of Juvista, its scarring product, in 2011.

In today’s interim management statement management said it was, “appropriately funded for continuing ongoing operations”.

In September Renovo announced a major restructure which saw it axe 50 staff – a third of its workforce – and focus its resources on the clinical development of its late stage product portfolio; Juvista, Adaprev and Prevascar.

At the time it also ended talks regarding an unsolicited approach for the firm, and reduced its board members from 13 to eight.

In its preliminary results for the year to September 30, pre-tax losses widened from £16.7m to £20.2m, while revenue dipped from £7.6m to £5m.