Following on from Poolbeg Pharma plc (LON:POLB) audited results for the period ended 31 December 2021, DirectorsTalk Interviews caught up with Chairman Cathal Friel for his thoughts on the update.
“Poolbeg aims to bring innovative infectious disease products through to a value inflection point by generating early human efficacy data before rapidly monetising through partnerships and licensing deals with pharma and biotech. Poolbeg’s model aims to significantly reduce spend and risk compared to the conventional biotech model and allows multiple opportunities for monetisation through its broad portfolio. The model also enhances investor returns as the out-licensing revenues will be reinvested into the pipeline of additional assets which in turn, can be further monetised rapidly and as such, substantially extending the runway from the £23.2m (after expenses) raised at IPO. We have a strong cash position with £20.9m as at period end and have efficiently managed costs while we continue to evaluate opportunities for non-dilutive grant funding to support the development of the pipeline. Our capital-light model is working well and the Company has significant financial resources and will continue to maintain the capital light approach to support the pipelines expansion and development. The loss for the period amounted to £2.3m which included the initial non-recurring costs of establishing the Group.
This has been a period of great progress at Poolbeg. In less than six months we have grown and diversified our portfolio of products and platforms targeted a range of infectious diseases. In addition, we are now using cutting edge Artificial Intelligence technology to exploit our unique human challenge data, having signed up leading AI drug development experts OneThree Biotech to analyse and interrogate our RSV data to identify new drug targets and treatments. Given our extensive network of relationships and contacts, we are in continuous engagement and discussion with pharma and biotech companies around the potential to monetise our portfolio including worldwide out-licensing or alternatively out-licensing individual territories. Upon receipt of human data from our POLB 001 clinical trial in H2 2022, we will look to monetise this asset to pharma and biotech companies. We also expect the preliminary outputs from the RSV Artificial Intelligence Discovery Programme in H2 2022.
Many shareholders are concerned that the release of the Open Orphan dividend in specie shares may damage the Poolbeg share price. I personally feel that this perception is wrong and that we won’t see a large sell-off of these dividend in specie shares. However, I would like to reassure shareholders that we are looking to put in place a series of actions that will reduce or eliminate the potential for these shares to impact the market. In addition to these specific actions, Poolbeg is also at an advanced stage of dual listing on the OTC market in the USA with plans to complete this within Q2. This should help provide additional liquidity in the Company.
As the single largest shareholder of the Company, I want to make it clear that none of us are happy with where the share price is currently given the drop since IPO, and I will make it my duty to ensure that the share price starts performing again. Market conditions have been and remain extremely challenging however, I want to reassure you that we are actively working on creating demonstrable value as we drive the business forward. I am very optimistic that in the months ahead our share price will perform and more importantly, that we will continue to progress our business model as outlined at IPO while we rapidly grow Poolbeg into a unique publicly listed company which will be a ‘one-stop-shop’ for pharma and biotechs seeking a range of infectious disease assets to develop in the months and years ahead. “
