REG - Oxford Cannabinoid - Trading Update

Oxford Cannabinoid Technologies HoldingsAnnouncement

12/12/2022 07:00

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RNS Number : 2871J  Oxford Cannabinoid Tech.Holdings  12 December 2022

 

 

Oxford Cannabinoid Technologies Holdings plc

("OCTP" or the "Company")

 

Trading Update

 

Continued progress, commencement of clinical trials of lead drug candidate
imminent

 

Financial and operational targets remain on track and on budget

 

Oxford Cannabinoid Technologies Holdings plc, the pharmaceutical company
developing prescription cannabinoid medicines targeting the US$ multi-billion
pain market, announces a positive trading and operational update for the six
months ended 31 October 2022 ("the Period").

 

Financial Highlights

The budget review, announced on 26 August 2022, realigned the Company's
development and expenditure programme to focus on bringing the Company's lead
compound, OCT461201, through Phase I clinical trials. Taking this action meant
that funds, which would otherwise have been fully utilised by April 2023, are
now expected to extend to Q4 2023.

 

Importantly, the Company remains on track and on budget to commence clinical
trials for OCT461201 in January 2023, with publication of its interim results
for the period ended 31 October 2022 also anticipated in January 2023.

 

During the Period, the Group incurred c.£3.1 million of R&D costs, with
progress being made on all four programmes. As at 31 October 2022, OCTP and
its subsidiary, Oxford Cannabinoid Technologies Ltd. ("OCT"), (together, "the
Group") had total cash reserves of approximately £5 million and remained debt
free.

 

Operational update

Operational progress has been consistent with the Board's expectations and the
Board remains confident that OCTP will achieve the milestones set out in its
current development timeline.

 

Work under the Group's £2.6 million contract research agreement with Aptuit
(Verona) SRL, a subsidiary of Evotec SE (together "Evotec"), which commenced
in July 2021 is now almost complete. Evotec will provide the Company with a
submission-ready regulatory document by the end of December 2022 and will
deliver an approved batch of drug product to the OCT461201 Programme 1 Phase I
clinical trial unit during Q1 2023.

 

In addition to the progress made on OCT461201, pre-clinical work for OCT130401
is almost complete, ensuring that Programme 2 will be Phase I ready in early
2023 at which time further development will be placed on hold in order to
preserve cash. Development work for Programmes 3 and 4 has also continued,
with the Company still on target to be at pre-clinical stage (for programme 3)
and lead stage (for programme 4) with these programmes by Q2 2023.

 

Clarissa Sowemimo-Coker, Interim CEO of OCTP, said: "We are incredibly pleased
with the ongoing progress and the fact that we remain on track to meet our
financial and operational targets. This is a big achievement and is testament
to the adaptability, skill, and "can do" attitude of Dr Valentino Parravicini,
his team, and our external partners.

 

"As OCTP nears a critical juncture in its journey to introduce prescription
cannabinoid medicines to the US$ multi-billion pain market, we are carefully
managing cash and are well placed to deliver on our key objectives. I look
forward to updating the market on our continued progress with the half-year
results."

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018).

 

The Directors of the Company accept responsibility for the content of this
announcement.

 

Enquiries:

 Oxford Cannabinoid Technologies Holdings plc  +44 (0)20 3034 2820

 Clarissa Sowemimo-Coker (Interim CEO)         clarissa@oxcantech.com

 Cairn Financial Advisers LLP

 Emily Staples                                 +44 (0)20 7213 0897

 Jo Turner                                     +44 (0) 20 7213 0885

 Axis Capital Markets Limited

 Kamran Hussain                                +44 (0)20 3026 0320

 Richard Hutchison

 finnCap Ltd

 Geoff Nash/Fergus Sullivan                    +44 (0) 20 7220 0500

 Nigel Birks (ECM)

 Walbrook PR Limited                           +44 (0)20 7933 8780

 Paul Vann/Nick Rome                           +44 (0)7768 807631

                                               oxcantech@walbrookpr.com (mailto:oxcantech@walbrookpr.com)

 

About Oxford Cannabinoid Technologies Holdings Plc:

Oxford Cannabinoid Technologies Holdings plc is the holding company of Oxford
Cannabinoid Technologies Ltd (together the "Group"), a pharmaceutical Group
developing prescription cannabinoid medicines for approval by key medicines
regulatory agencies worldwide and targeting the U$ multi-billion pain market.
Cannabinoids are compounds found in the cannabis plant that have been shown to
have a range of therapeutic effects on the body, including pain relief. The
Group has a clearly defined path to commercialisation, revenues and growth.
The Group is developing drug candidates through clinical trials to gain
regulatory approval (FDA/MHRA/EMA) that will enable medical professionals to
prescribe them with confidence.

 

The Group's portfolio aims to balance risk, value and time to market, whilst
ensuring market exclusivity around all its key activities. The Group's lead
compound, OCT461201, is a highly potent and selective CB2 agonist and is being
developed by OCTP in a solid oral dosage form. OCTP is conducting pre-clinical
testing and development with a clinical trial scheduled for Q1 2023. The
Group's product pipeline also uses a balanced drug product strategy that
employs both natural and synthetic compounds for the treatment of rare
diseases and includes chemically modified phytocannabinoids with improved
drug-like characteristics and a proprietary library of cannabinoids.

 

OCTP operates a partnership model with external academic and commercial
partners.

 

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.

 

 

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