Living Cell Technologies reports wider first-half loss

Living Cell Technologies reported a wider loss in the six months to December on increased research and development.

The company said its consolidated operating loss after tax was $A2.1 million against a loss of $A1.4 million in the same period a year earlier. Its loss per share was 0.42Ac versus a loss of 0.34Ac a year earlier. The main reason was increased costs incurred during the clinical trial of Living Cell's NTCELL product to treat Parkinson's disease, as well as the cost of security the supply and manufacture of NTCELL, the company said. Earlier this month it received approval to begin treating six patients in group 3 of the trial at Auckland City Hospital.

The aim of the trial is to confirm the most effective doses of NTCELL, define any placebo component of the response and further identify the initial target Parkinson's disease patient sub group.

If the trial is successful it will apply for provisional consent to treat patients in New Zealand in late 2017, the Melbourne-headquartered company says.

It noted an increase in services provided to $55,556 from $30,373 reflecting the facilities provided its 50% joint venture company with Diatranz Otsuka, now the company leases manufacturing premises.

That joint venture is looking to accelerate development of DIABECELL, a cell therapy aimed at improving some of the symptoms of type 1 diabetes, using cells from a unique breed of pigs from the remote Auckland Islands

The company says its Callaghan Innovation growth grant income increased as a result of eligible research and development expenditure.

The grant income jumped to $448,221 from $245,244. Expenses on research and development, however, jumped to $1.79 million from $911,012 in the same period a year earlier.

At the end of December its net assets were $9.8 million versus $3.7 million at the same month in 2015.

Cash and cash equivalents increased to $8.6 million versus $5.3 million on June 30. That increase was primarily due to the capital raising of $6.3 million at the end of November.

It shares were down 4.8% at 10Ac.

(BusinessDesk)