4d Pharma PLC (LON: DDDD) today announced the publishing of the results of its Phase II clinical trial of LBP Blautix® (MRx1234) that aims to treat irritable bowel syndrome (IBS). The data was published in the journal of Alimentary Pharmacology & Therapeutics.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The news comes even as the company remains under administration after its secured lender Oxford Finance LLC called in loans worth $13.5 million in June, leading to the suspension of its shares from trading on the London Stock Exchange (LSE) on 27 June 2022.
The company’s management continues to work with the administrators to rescue the firm as a going concern, which appears likely given the ongoing clinical trials. The administrators are keen to complete the clinical trials to avoid harming the patients enrolled in the trials.
4d Pharma was a promising biotech company specialising in developing treatments for multiple diseases based on the human microbiome by utilising live biotherapeutics typically found in healthy human bodies. The company had over 1,000 patents before going into administration.
The biotech company was a casualty of the ongoing biotech bear market that saw investors flee the sector in droves leaving many companies struggling to raise much-needed funds to continue working on the innovative drugs associated with most biotechs.
Today’s announcement stoked hopes that maybe 4d Pharma will continue operating as a standalone company. However, the only way for the company to remain operational is for a deep-pocketed buyer to come in and bail it out since all its creditors would have to be paid.
Furthermore, the phase II clinical trial missed its primary endpoint, which means that Blautix® (MRx1234) may not be the cure for IBS, but it can still alleviate many of the symptoms associated with the two forms of IBS.
Alex Stevenson, 4D pharma’s Chief Scientific Officer, said: “We are pleased to share our innovative clinical findings in a respected medical research journal. Irritable bowel syndrome remains a significant unmet medical need…; these clinical results support the potential for Blautix®, a single strain Live Biotherapeutic Product, to address the underlying causes of this highly debilitating condition.”
Investors holding 4d Pharma shares before their delisting may lose their entire investment since they will be the last to be paid after all creditors have been paid.
*This is not investment advice.
4d Pharma share price chart.
4d Pharma shares last traded on London Stock Exchange on Friday, 24 June 2022, before being suspended.