AGI hits losses of $1.5m, but says trials are on track

IRISH pharmaceutical company AGI Therapeutics has seen its first half losses widen by about $1.5 million (€1.05m).

However, the company, added that the clinical trials programme for its lead treatment for irritable bowel syndrome — Rezular — remains on track.

For the first six months of this year, the Dublin-headquartered pharmaceutical firm reported a pre-tax loss of $8.94m (€6.33m).

That represented anincrease from the previous year’s figure of some $7.46m (€5.29m).

Operating losses came in at just over $10m for the period, up from an operating loss of $8.53m (€6.04m)for the first half of 2007.

Company revenue was unchanged at $288,000, while the operation reported a basic loss per share of 13.3c, up from a loss of 11.8c at the same stage last year.

On an operational level, the Rezular treatment has entered phase 3 trials and its AGI-004 treatment for chemotherapy-induced diarrhoea has entered phase 2 trials.

“The first six months of this year have been dominated by our efforts to ensure that the phase 3 programme for Rezular remains on track as we work to achieve our goal of reporting of clinical data in the first half of 2009,” said AGI chief executive John Devane.

“We believe that Rezular can be the first new widely-used and effective treatment to come to market for IBS-D (diarrhoea-predominant irritable bowel syndrome) — a disease that affects over 10 million people in the US alone and for which there are currently few safe and effective treatments.

“This is a large and, as yet, untapped market with a potential to generate new product sales in excess of $2bn annually in the US and we anticipate that Rezular will be well-placed to garner a significant portion of that market,” he added.

AGI is also looking to further negotiations with potential developmental partners for Rezular and is also looking, next year, at talking with the US Food and Drug Administration at trying to further define the developmental and regulatory pathway for its AGI-004 treatment.

The company’s shares were trading in Dublin yesterday at 86c, making them unchanged from the previous day’s close.