Solvonis shares fall with 'high risk' that losses will continue
Solvonis Therapeutics PLC said on Wednesday that it will be focusing on funding its research projects, after reporting no sources of revenue for its latest year.
Solvonis shares fell 14% to 0.14 pence in London on Wednesday afternoon.
The company reported a pretax loss of £1.4 million in 2024, narrowed from a £3.1 million loss the previous year.
Furthermore, Solvonis said there is ‘a high risk that the group will continue to remain loss making for the foreseeable future.’
Solvonis is a London-based biotechnology company which focuses on developing therapeutics for mental health and substance use disorders.
The company generated no revenue in 2024, having reported £587,000 in 2023.
The firm said that its ongoing activities are being supported by equity fundraising, existing cash resources and funds received from existing debt facilities entered into by Awakn Life Sciences Ltd.
Solvonis entered into a partnership with Awakn in July 2024. Awakn is a Toronto, Canada-based clinical stage biotechnology company that develops therapeutics for addiction and mental health.
The company also said that some of its research programmes are at a very early stage of progression and that there is ‘a greater risk of those projects not being commercialised or abandoned’.
It added that it has been facing uncertainty relating to the success and the revenue-generating potential of royalty agreements with drug developer and marketer Argent Biopharma, which focuses on addressing unmet medical needs.
The firm also noted difficulties affecting biotechnology and pharmaceutical companies in 2024.
In particular, it said the sector faced challenges enrolling patients in clinical trials which could result in the completion of the trials being delayed or cancelled. The sector also faced general delays in clinical tests, which may result in delays in commercialising product candidates as well as a lack of specialised staff members.
Copyright 2025 Alliance News Ltd. All Rights Reserved.