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Shares of N4 Pharma (LON: N4P) have fallen on Wednesday after the company released its full-year 2020 results showing an increase in R&D costs which widened its operating loss.

The pharmaceutical company, as expected, reported no revenue for the year, but its operating loss for the period increased to £1.56 million compared to a loss of £947,340 in 2019.

However, the company noted that expenditure was broadly in line with budget, increasing in line with study results determining the next expenditure requirements to progress workstreams.

During the year, N4 Pharma raised over £4.15 million through a placing of 50.7 million new ordinary shares in May and a further 25 million shares in December, with the remainder being through the exercise of warrants and options.

“Our cash position is the strongest it has ever been and leaves us well positioned to complete our current work streams, plan for follow on work and fund our costs in any initial collaboration work,” stated the company’s Chairman John Chiplin.

N4 said that looking ahead, they hope Nuvec, a novel delivery system for cancer and vaccine treatments, will a viable delivery solution to vaccine developers across multiple vaccines.

“Together with our oncology programme, 2021 could turn out to be a pivotal year for N4 Pharma, as our various applications for Nuvec® advance to the point where we can engage further with potential collaborators and partners,” said Chiplin.

The company also said the last 12 months has seen them make considerable progress in the dispersion and formulation work for Nuvec which will put them in a stronger position for collaboration discussions.

“This is a pivotal time for the Company, we are now finalising the data we feel will give third parties the confidence to explore testing of Nuvec® with their own constructs and we continue to expand that dataset all the time,” said N4's CEO, Nigel Theobald.

N4’s share price is currently down over 6% at 8.68p per share.

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