OPERATIONAL HIGHLIGHTS
NIOX® performing strongly
Sales increased 21% (14% at CER1) to £11.1 million (H1 2015 CER: £9.7 million - £0.6 million under Circassia ownership and £9.1 million under previous ownership)
Direct clinical sales (ie non-research2) increased 35% (26% CER) compared with H1 2015
Study to extend US label down to four year olds on track to report H2 2016
Respiratory portfolio progressing
Seriveo® (Seretide® pMDI substitute) filing on track for H2 2017
Triple combination study shows no significant safety concerns; all three components bioavailable
Prudent approach to allergy portfolio
No major confounding factors identified in cat allergy phase III dataset
Allergy investment curtailed following cat allergy phase III results
Portfolio review to follow results from house dust mite allergy study (n=715) anticipated Spring 2017
Commercial platform expanded as strategic asset for product in-licensing, partnering & acquisition
Global commercial group expanded to 200
US sales force increased to approximately 100; managed markets and key accounts teams in place
Commercial presence strengthened in Germany and China
UK direct sales force recruitment underway
Portfolio strengthened
Negotiations initiated with partner for EU rights to Fliveo® (Flixotide® pMDI substitute)
Particle-engineered Spiriva® DPI substitute progressed into development
Two new product opportunities initiated leveraging respiratory expertise
Non-specialty, non-substitutable products to be partnered (including triple combination)
R&D reorganised; allergy team and R&D facilities rationalised; device group strengthened
Evaluation of further specialty product opportunities underway
FINANCIAL HIGHLIGHTS
Revenues increased to £11.1 million (H1 2015: £0.6 million)
R&D expenditure £25.1 million (H1 2015: £18.4 million) including £13.8 million on allergy
Underlying loss for period £25.4 million (H1 2015: £21.7 million)
Provisions against and impairment of allergy portfolio3 £76.4 million
Strong balance sheet with £138.0 million cash4 at 30 June 2016 one-off payments of £33.2 million relating to 2015 acquisitions paid H1 2016 (cash4 at 31 December 2015: £203.8 million)
