Other Events
On August 16, 2023, NuCana plc (the “Company”) issued a press release announcing its second quarter 2023 financial results. The Company’s unaudited condensed consolidated financial statements as of June 30, 2023 are attached as Exhibit 99.1 and are incorporated by reference herein. The Company’s Management’s Discussion and Analysis of Financial Condition and Results of Operations is attached hereto as Exhibit 99.2, and is incorporated by reference herein. The press release is attached as Exhibit 99.3 hereto and is incorporated by reference herein.
The information in the attached Exhibits 99.1 and 99.2 shall be deemed to be incorporated by reference into the registration statements on Form F-3 (File Number 333-258941) and Form S-8 (File Number 333-223476 and File Number 333-248135), and related prospectuses, as such registration statements and prospectuses may be amended from time to time, and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.
The information in the attached Exhibit 99.3 is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise set forth herein or as shall be expressly set forth by specific reference in such a filing.
Exhibits
| Exhibit |
Description | |
| 99.1 | Unaudited Condensed Consolidated Financial Statements as of June 30, 2023 and for the Three and Six Months Ended June 30, 2023 and 2022 | |
| 99.2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Three and Six Months Ended June 30, 2023 and 2022 | |
| 99.3 | Press Release Dated August 16, 2023 | |
| 101.INS | XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
| 101.SCH | INLINE XBRL Taxonomy Extension Schema Document | |
| 101.DEF | INLINE XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.CAL | INLINE XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | INLINE XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | INLINE XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
| NuCana plc | ||
| By: | /s/ Donald Munoz | |
| Name: | Donald Munoz | |
| Title: | Chief Financial Officer | |
Date: August 16, 2023
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||||||
Notes |
2023 |
2022 |
2023 |
2022 |
||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||||
£ |
£ |
£ |
£ |
|||||||||||||||||
Research and development expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Administrative expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Net foreign exchange (losses) gains |
( |
) | ( |
) | ||||||||||||||||
Operating loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Finance income |
||||||||||||||||||||
Loss before tax |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Income tax credit |
3 | |||||||||||||||||||
Loss for the period |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Basic and diluted loss per share |
4 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
(in thousands) |
||||||||||||||||
£ |
£ |
£ |
£ |
|||||||||||||
| Loss for the period |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| Other comprehensive (expense) income: |
||||||||||||||||
| Items that may be reclassified subsequently to profit or loss: |
||||||||||||||||
| Exchange differences on translation of foreign operations |
( |
) | ( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Other comprehensive (expense) income for the period |
( |
) | ( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total comprehensive loss for the period |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Attributable to: |
||||||||||||||||
| Equity holders of the Company |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
June 30, 2023 |
December 31, 2022 |
|||||||||||
(in thousands) |
||||||||||||
Notes |
£ |
£ |
||||||||||
| Assets |
||||||||||||
| Non-current assets |
||||||||||||
| Intangible assets |
5 | |||||||||||
| Property, plant and equipment |
||||||||||||
| Deferred tax asset |
3 | |||||||||||
| |
|
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|
|||||||||
| |
|
|
|
|||||||||
| Current assets |
||||||||||||
| Prepayments, accrued income and other receivables |
||||||||||||
| Current income tax receivable |
3 | |||||||||||
| Other assets |
6 | |||||||||||
| Cash and cash equivalents |
7 | |||||||||||
| |
|
|
|
|||||||||
| |
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|
|||||||||
| Total assets |
||||||||||||
| |
|
|
|
|||||||||
| Equity and liabilities |
||||||||||||
| Capital and reserves |
||||||||||||
| Share capital and share premium |
9 | |||||||||||
| Other reserves |
||||||||||||
| Accumulated deficit |
( |
) | ( |
) | ||||||||
| |
|
|
|
|||||||||
| Total equity attributable to equity holders of the Company |
||||||||||||
| |
|
|
|
|||||||||
| Non-current liabilities |
||||||||||||
| Provisions |
10 | |||||||||||
| Lease liabilities |
||||||||||||
| |
|
|
|
|||||||||
| |
|
|
|
|||||||||
| Current liabilities |
||||||||||||
| Trade payables |
||||||||||||
| Payroll taxes and social security |
||||||||||||
| Accrued expenditure |
||||||||||||
| Lease liabilities |
||||||||||||
| Provisions |
10 | |||||||||||
| |
|
|
|
|||||||||
| Total liabilities |
||||||||||||
| |
|
|
|
|||||||||
| Total equity and liabilities |
||||||||||||
| |
|
|
|
|||||||||
For the Six Months Ended June 30, |
||||||||||||||||||||||||||||||||
Share capital |
Share premium |
Own share reserve |
Share option reserve |
Foreign currency translation reserve |
Capital reserve |
Accumulated deficit |
Total equity attributable to equity holders |
|||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|||||||||||||||||||||||||
| Balance at January 1, 2022 |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||
| Loss for the period |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||
| Other comprehensive income for the period |
— | — | — | — | — | — | ||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
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|
|||||||||||||||||
| Total comprehensive loss for the period |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||
| Share-based payments |
— | — | — | — | — | — | ||||||||||||||||||||||||||
| Exercise of share options |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||||||
| Lapse of share options |
— | — | — | ( |
) | — | — | — | ||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Balance at June 30, 2022 |
( |
) |
( |
) |
||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
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| |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at January 1, 2023 |
( |
) |
( |
) |
||||||||||||||||||||||||||||
| Loss for the period |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||
| Other comprehensive expense for the period |
— | — | — | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total comprehensive loss for the period |
— | — | — | — | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||||||
| Share-based payments |
— | — | — | — | — | — | ||||||||||||||||||||||||||
| Exercise of share options |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||||||
| Lapse of share options |
— | — | — | ( |
) | — | — | — | ||||||||||||||||||||||||
| Issue of share capital |
— | — | — | — | — | |||||||||||||||||||||||||||
| Share issue expenses |
— | ( |
) | — | — | — | — | — | ( |
) | ||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Balance at June 30, 2023 |
( |
) |
( |
) |
||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
For the Six Months Ended June 30, |
||||||||
2023 |
2022 |
|||||||
(in thousands) |
||||||||
£ |
£ |
|||||||
Cash flows from operating activities |
||||||||
Loss for the period |
( |
) | ( |
) | ||||
Adjustments for: |
||||||||
Income tax credit |
( |
) | ( |
) | ||||
Amortization and depreciation |
||||||||
Movement in provisions |
( |
) | — | |||||
Finance income |
( |
) | ( |
) | ||||
Interest expense on lease liabilities |
||||||||
Share-based payments |
||||||||
Net foreign exchange losses (gains) |
( |
) | ||||||
| ( |
) | ( |
) | |||||
Movements in working capital: |
||||||||
Decrease in prepayments, accrued income and other receivables |
||||||||
(Decrease) increase in trade payables |
( |
) | ||||||
Decrease in payroll taxes, social security and accrued expenditure |
( |
) | ( |
) | ||||
Movements in working capital |
( |
) | ( |
) | ||||
Cash used in operations |
( |
) |
( |
) | ||||
Net income tax paid |
( |
) | — | |||||
Net cash used in operating activities |
( |
) |
( |
) | ||||
Cash flows from investing activities |
||||||||
Interest received |
||||||||
Payments for property, plant and equipment |
( |
) | ( |
) | ||||
Payments for intangible assets |
( |
) | ( |
) | ||||
Net cash from (used in) investing activities |
( |
) | ||||||
Cash flows from financing activities |
||||||||
Payments for lease liabilities |
( |
) | ( |
) | ||||
Proceeds from issue of share capital – exercise of share options |
||||||||
Proceeds from issue of share capital |
— | |||||||
Share issue expense |
( |
) | — | |||||
Net cash used in financing activities |
( |
) |
( |
) | ||||
Net decrease in cash and cash equivalents |
( |
) | ( |
) | ||||
Cash and cash equivalents at beginning of period |
||||||||
Effect of exchange rate changes on cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents at end of period |
||||||||
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
(in thousands) |
||||||||||||||||
£ |
£ |
£ |
£ |
|||||||||||||
| Current tax: |
||||||||||||||||
| In respect of current period U.K. |
||||||||||||||||
| In respect of prior period U.K. |
( |
) | — | ( |
) | — | ||||||||||
| In respect of current period U.S. |
— | ( |
) | ( |
) | ( |
) | |||||||||
| |
|
|
|
|
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|
|||||||||
| Deferred tax: |
||||||||||||||||
| In respect of current period U.S. |
||||||||||||||||
| In respect of prior period U.S. |
— | — | ( |
) | — | |||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Income tax credit |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
June 30, 2023 |
December 31, 2022 |
|||||||
(in thousands) |
||||||||
£ |
£ |
|||||||
| Current income tax receivable |
||||||||
| U.K. tax |
||||||||
| U.S. tax |
||||||||
| |
|
|
|
|||||
| |
|
|
|
|||||
| Deferred tax asset |
||||||||
| U.S. deferred tax asset |
||||||||
| |
|
|
|
|||||
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
(in thousands, except per share data) |
||||||||||||||||
£ |
£ |
£ |
£ |
|||||||||||||
| Loss for the period |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Basic and diluted weighted average number of shares |
||||||||||||||||
| Basic and diluted loss per share |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
June 30, 2023 |
December 31, 2022 |
|||||||
(in thousands) |
||||||||
£ |
£ |
|||||||
| Other assets |
||||||||
| |
|
|
|
|||||
June 30, 2023 |
December 31, 2022 |
|||||||
(in thousands) |
||||||||
£ |
£ |
|||||||
| Cash and cash equivalents |
||||||||
| |
|
|
|
|||||
Options granted on |
||||||||||||
January 11, 2023 |
January 11, 2023 |
January 11, 2023 |
||||||||||
| Vesting dates |
||||||||||||
| Volatility |
% | % | % | |||||||||
| Dividend yield |
% | % | % | |||||||||
| Risk-free investment rate |
% | % | % | |||||||||
| Fair value of option at grant date |
£ | £ | £ | |||||||||
| Fair value of share at grant date |
£ | £ | £ | |||||||||
| Exercise price at date of grant |
£ | £ | £ | |||||||||
| Lapse date |
— | |||||||||||
| Expected option life (years) |
||||||||||||
| Number of options granted |
||||||||||||
June 16, 2023 |
June 16, 2023 |
|||||||||||
| Vesting dates |
||||||||||||
| Volatility |
% | % | ||||||||||
| Dividend yield |
% | % | ||||||||||
| Risk-free investment rate |
% | % | ||||||||||
| Fair value of option at grant date |
£ | £ | ||||||||||
| Fair value of share at grant date |
£ | £ | ||||||||||
| Exercise price at date of grant |
£ | £ | ||||||||||
| Lapse date |
— | |||||||||||
| Expected option life (years) |
||||||||||||
| Number of options granted |
||||||||||||
June 30, 2023 |
December 31, 2022 |
|||||||
(in thousands) |
||||||||
£ |
£ |
|||||||
| Share capital |
||||||||
| Share premium |
||||||||
| |
|
|
|
|||||
| |
|
|
|
|||||
| Number (in thousands) |
||||||||
| Issued share capital comprises: |
||||||||
| Ordinary shares of £ |
||||||||
| |
|
|
|
|||||
Number of shares |
Share capital |
Share premium |
||||||||||
(in thousands) |
||||||||||||
Fully paid shares: |
£ |
£ |
||||||||||
| Balance at December 31, 2022 |
||||||||||||
| Issue of shares on exercise of options |
||||||||||||
| Issue of shares |
||||||||||||
| |
|
|
|
|
|
|||||||
| Balance at June 30, 2023 |
||||||||||||
| |
|
|
|
|
|
|||||||
Legal proceedings |
Dilapidations |
Total |
||||||||||
(in thousands) |
||||||||||||
£ |
£ |
£ |
||||||||||
| Balance at December 31, 2022 |
||||||||||||
| Additions |
— | |||||||||||
| Reverse unused |
( |
) | — | ( |
) | |||||||
| Utilized |
( |
) | ( |
) | ( |
) | ||||||
| Transfer from prepayments, accrued income and other receivables |
( |
) | — | ( |
) | |||||||
| Effect of foreign currency exchange differences |
( |
) | — | ( |
) | |||||||
| |
|
|
|
|
|
|||||||
| Balance at June 30, 2023 |
||||||||||||
| |
|
|
|
|
|
|||||||
| Classified as: |
||||||||||||
| Current |
— | |||||||||||
| Non-current |
— | |||||||||||
| |
|
|
|
|
|
|||||||
| |
|
|
|
|
|
|||||||
Exhibit 99.2
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion and analysis of financial condition and results of operations together with the unaudited condensed consolidated financial statements and the related notes to those statements included as Exhibit 99.1 to this Report on Form 6-K submitted to the Securities and Exchange Commission, or the SEC, on August 16, 2023. We also recommend that you read our discussion and analysis of financial condition and results of operations together with our audited financial statements and the notes thereto, and the section entitled “Risk Factors”, each of which appear in our Annual Report on Form 20-F for the year ended December 31, 2022 filed with the SEC on April 4, 2023 (the “Annual Report”).
We present our unaudited condensed consolidated financial statements in pounds sterling and in accordance with International Accounting Standard 34, “Interim Financial Reporting,” or IAS 34, which may differ in material respects from generally accepted accounting principles in other jurisdictions, including generally accepted accounting principles in the United States, or U.S. GAAP.
Unless otherwise indicated or the context otherwise requires, all references to “NuCana,” the “Company,” “we,” “our,” “us” or similar terms refer to NuCana plc and its consolidated subsidiaries.
The statements in this discussion regarding industry outlook, our expectations regarding our future performance, liquidity and capital resources and other non-historical statements are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties set forth in the “Risk Factors” section of our Annual Report and any subsequent reports that we file with the SEC.
Company Overview
We are a clinical-stage biopharmaceutical company focused on significantly improving treatment outcomes for patients with cancer by applying our ProTide technology to transform some of the most widely prescribed chemotherapy agents, nucleoside analogs, into more effective and safer medicines. While these conventional agents remain part of the standard of care for the treatment of many solid and hematological tumors, they have significant shortcomings that limit their efficacy and they are often poorly tolerated. Utilizing our proprietary technology, we are developing new medicines, ProTides, designed to overcome the key limitations of nucleoside analogs and generate much higher concentrations of anti-cancer metabolites in cancer cells. NuCana’s pipeline includes NUC-3373 and NUC-7738. NUC-3373 is a new chemical entity derived from the nucleoside analog 5-fluorouracil, a widely used chemotherapy agent. NUC-3373 is currently in three ongoing clinical trials: a Phase 1b/2 clinical trial, in combination with other agents, for the treatment of patients with advanced colorectal cancer; a randomized Phase 2 trial, in combination with other agents, for the second-line treatment of patients with advanced colorectal cancer; and a Phase 1b/2 modular trial in combination with the PD-1 inhibitor pembrolizumab in patients with advanced solid tumors and in combination with docetaxel in patients with lung cancer. NUC-7738, is a transformation of 3’-deoxyadenosine, a novel anti-cancer nucleoside analog. NUC-7738 is in the Phase 2 part of a Phase 1/2 clinical trial in patients with advanced solid tumors which is evaluating NUC-7738 as a monotherapy and in combination with pembrolizumab in patients with advanced solid tumors.
Financial Operations Overview
Revenues
We do not have any approved products. Accordingly, we have not generated any revenue, and we do not expect to generate any revenue from the sale of any products unless and until we obtain regulatory approvals for, and commercialize any of, our product candidates. In the future, we will seek to generate revenue primarily from product sales and, potentially, regional or global collaborations with strategic partners.
Operating Expenses
We classify our operating expenses into two categories: research and development expenses and administrative expenses. Personnel costs, including salaries, benefits, bonuses and share-based payment expense, comprise a component of each of these expense categories. We allocate expenses associated with personnel costs based on the function performed by the respective employees.
Research and Development Expenses
The largest component of our total operating expenses since our inception has been costs related to our research and development activities, including the preclinical and clinical development of our product candidates.
Research and development costs are expensed as incurred. Our research and development expense primarily consists of:
| • | costs incurred under agreements with contract research organizations, or CROs, and investigative sites that conduct preclinical studies and clinical trials; |
| • | costs related to manufacturing active pharmaceutical ingredients and drug products for preclinical studies and clinical trials; |
| • | salaries and personnel-related costs, including bonuses, benefits and any share-based payment expense, for our personnel performing research and development activities or managing those activities that have been out-sourced; |
| • | fees paid to consultants and other third parties who support our product candidate development; |
| • | costs of maintaining and defending patents; |
| • | other costs incurred in seeking regulatory approval for our product candidates; and |
| • | payments under our license agreements. |
The successful development of our ProTides is highly uncertain. Product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development, primarily due to the increased size and duration of later stage clinical trials. However, we do not believe that it is possible at this time to accurately project total program specific expenses through commercialization. We are also unable to predict when, if ever, material net cash inflows will commence from our product candidates to offset these expenses. Our expenditures on current and future preclinical and clinical development programs are subject to numerous uncertainties in timing and cost to completion.
The duration, costs and timing of clinical trials and development of our product candidates will depend on a variety of factors including:
| • | the scope, rate of progress, results and expenses of our ongoing and future clinical trials, preclinical studies and research and development activities; |
| • | the potential need for additional clinical trials or preclinical studies requested by regulatory agencies; |
| • | potential uncertainties in clinical trial enrollment rates or drop-out or discontinuation rates of patients; |
| • | competition with other drug development companies in, and the related expense of, identifying and enrolling patients in our clinical trials and contracting with third-party manufacturers for the production of the drug product needed for our clinical trials; |
| • | the achievement of milestones requiring payments under in-licensing agreements; |
| • | any significant changes in government regulation; |
| • | the terms and timing of any regulatory approvals; |
| • | the expense of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights; and |
| • | the ability to market, commercialize and achieve market acceptance for any of our product candidates, if approved. |
We track research and development expenses on a program-by-program basis for both clinical-stage and preclinical product candidates. Where appropriate, manufacturing and non-clinical research and development expenses are assigned or allocated to individual product candidates.
Administrative Expenses
Administrative expenses consist of personnel costs, depreciation, amortization and other expenses for outside professional services, including legal, audit and accounting services. Personnel costs consist of salaries, bonuses, benefits and share-based payment expense. Other administrative expenses include office related costs, professional fees and costs of our information systems. We anticipate that our administrative expenses will continue to increase in the future as we increase our headcount to support our continued research and development and potential commercialization of our product candidates. We also incur expenses as a public company, including expenses related to compliance with the rules and regulations of the SEC and The Nasdaq Global Select Market, additional insurance expenses, and expenses related to investor relations and other administrative and professional services.
Net Foreign Exchange Gains (Losses)
Net foreign exchange gains (losses) primarily relates to cash held in U.S. dollars.
Finance Income
Finance income relates to interest earned on our cash and cash equivalents.
Income Tax Credit
We are subject to corporate taxation in the United Kingdom and our wholly owned U.S. subsidiary, NuCana, Inc., is subject to corporate taxation in the United States. Due to the nature of our business, since our inception, we have generated losses in the United Kingdom. Our income tax credit recognized represents the sum of the research and development tax credits recoverable in the United Kingdom and in the United States, and income tax payable in the United States.
As a company that carries out extensive research and development activities, we benefit from the U.K. and U.S. research and development tax credit regimes. In the United Kingdom, we are able to surrender some of our losses for a cash rebate of up to 26.97% of eligible expenditures on qualifying research and development projects incurred on or after April 1, 2023 (33.35% prior to April 1, 2023). In the United States, we are able to offset the research and development credits against corporation tax payable. Our qualifying expenditures in the United Kingdom largely comprise clinical trial and manufacturing costs, employment costs for relevant staff and consumables incurred as part of research and development projects. In the United Kingdom, where we receive the larger proportion of the research and development credit, certain subcontracted qualifying research and development expenditures are eligible for a cash rebate of up to 17.53% from April 1, 2023 (21.68% prior to April 1, 2023). These rates are subject to the introduction of a territoriality restriction which may restrict our ability to claim relief in respect of research and development activity taking place outside the United Kingdom, which will apply to accounting periods beginning after April 1, 2024. A large portion of costs relating to our research and development, clinical trials and manufacturing activities are eligible for inclusion within these tax credit cash rebate claims.
We may not be able to continue to claim research and development tax credits in the United Kingdom in the future under the current research and development tax credit scheme because we may no longer qualify as a small or medium-sized company. However, in that scenario, we may be able to claim tax credits under a large company scheme.
Results of Operations
Comparison of the Three Months Ended June 30, 2023 and June 30, 2022
The following table summarizes the results of our operations for the three months ended June 30, 2023 and 2022.
| For the Three Months Ended June 30, |
||||||||
| 2023 | 2022 | |||||||
| (unaudited) | ||||||||
| (in thousands) | ||||||||
| £ | £ | |||||||
| Research and development expenses |
(3,959 | ) | (6,406 | ) | ||||
| Administrative expenses |
(1,754 | ) | (1,889 | ) | ||||
| Net foreign exchange (losses) gains |
(564 | ) | 3,077 | |||||
|
|
|
|
|
|||||
| Operating loss |
(6,277 | ) | (5,218 | ) | ||||
| Finance income |
178 | 132 | ||||||
|
|
|
|
|
|||||
| Loss before tax |
(6,099 | ) | (5,086 | ) | ||||
| Income tax credit |
685 | 1,194 | ||||||
|
|
|
|
|
|||||
| Loss for the period |
(5,414 | ) | (3,892 | ) | ||||
| Other comprehensive (expense) income: |
||||||||
| Items that may be reclassified subsequently to profit or loss: |
||||||||
| Exchange differences on translation of foreign operations |
(19 | ) | 43 | |||||
|
|
|
|
|
|||||
| Total comprehensive loss for the period |
(5,433 | ) | (3,849 | ) | ||||
|
|
|
|
|
|||||
Research and Development Expenses
Research and development expenses were £4.0 million for the three months ended June 30, 2023 as compared to £6.4 million for the three months ended June 30, 2022, a decrease of £2.4 million. The decrease resulted primarily from lower expenses incurred in relation to clinical trials of £1.5 million in the three months ended June 30, 2023, compared with £2.9 million in the three months ended June 30, 2022, largely due to the discontinuation of the Phase 3 clinical trial of Acelarin in March 2022 and finalization of certain associated liabilities. Patent costs decreased by £0.6 million in the three months ended June 30, 2023 compared with the three months ended June 30, 2022 mainly due to lower patent defense activity. Other research and development costs decreased by £0.4 million in the three months ended June 30, 2023 compared with the three months ended June 30, 2022, primarily due to lower personnel costs, share-based payment expenses and manufacturing costs.
The following table gives a breakdown of the research and development costs incurred by product candidate for the three months ended June 30, 2023 and 2022:
| For the Three Months Ended June 30, |
||||||||
| 2023 | 2022 | |||||||
| (in thousands) | ||||||||
| £ | £ | |||||||
| NUC-3373 |
3,572 | 2,435 | ||||||
| NUC-7738 |
788 | 903 | ||||||
| Acelarin |
(803 | ) | 2,852 | |||||
| Other |
402 | 216 | ||||||
|
|
|
|
|
|||||
| 3,959 | 6,406 | |||||||
|
|
|
|
|
|||||
Administrative Expenses
Administrative expenses were £1.8 million for the three months ended June 30, 2023 as compared to £1.9 million for the three months ended June 30, 2022. The decrease was principally related to lower insurance costs, amortization and professional fees partially offset by higher personnel costs and share-based payment expenses.
Net Foreign Exchange (Losses) Gains
For the three months ended June 30, 2023, we reported a net foreign exchange loss of £0.6 million as compared to a net foreign exchange gain of £3.1 million for the three months ended June 30, 2022. In the three months ended June 30, 2023, the loss arose from cash balances held in U.S. dollars and the U.S. dollar depreciating relative to the U.K. pound sterling. Conversely in the three months ended June 30, 2022, the gain arose from cash balances held in U.S. dollars and the U.S. dollar appreciating relative to the U.K. pound sterling.
Finance Income
Finance income represents bank interest and was £0.2 million for the three months ended June 30, 2023 and £0.1 million for the three months ended June 30, 2022. The increase in bank interest resulted from higher rates of interest being earned on cash deposits.
Income Tax Credit
The income tax credit for the three months ended June 30, 2023, which is largely comprised of U.K. research and development tax credits, amounted to £0.7 million as compared to £1.2 million for the three months ended June 30, 2022. The decrease in the income tax credit was primarily attributable to a decrease in our eligible research and development expenses, a decrease in the tax credit rate and an adjustment relating to prior periods of £0.2 million.
Results of Operations
Comparison of the Six Months Ended June 30, 2023 and June 30, 2022
The following table summarizes the results of our operations for the six months ended June 30, 2023 and 2022.
| For the Six Months Ended June 30, |
||||||||
| 2023 | 2022 | |||||||
| (unaudited) | ||||||||
| (in thousands) | ||||||||
| £ | £ | |||||||
| Research and development expenses |
(10,764 | ) | (15,852 | ) | ||||
| Administrative expenses |
(3,402 | ) | (4,040 | ) | ||||
| Net foreign exchange (losses) gains |
(1,259 | ) | 4,208 | |||||
|
|
|
|
|
|||||
| Operating loss |
(15,425 | ) | (15,684 | ) | ||||
| Finance income |
465 | 163 | ||||||
|
|
|
|
|
|||||
| Loss before tax |
(14,960 | ) | (15,521 | ) | ||||
| Income tax credit |
1,679 | 3,226 | ||||||
|
|
|
|
|
|||||
| Loss for the period |
(13,281 | ) | (12,295 | ) | ||||
| Other comprehensive (expense) income: |
||||||||
| Items that may be reclassified subsequently to profit or loss: |
||||||||
| Exchange differences on translation of foreign operations |
(38 | ) | 56 | |||||
|
|
|
|
|
|||||
| Total comprehensive loss for the period |
(13,319 | ) | (12,239 | ) | ||||
|
|
|
|
|
|||||
Research and Development Expenses
Research and development expenses were £10.8 million for the six months ended June 30, 2023 as compared to £15.9 million for the six months ended June 30, 2022, reflecting a decrease of £5.1 million. The decrease resulted primarily from lower expenses incurred in relation to clinical trials of £3.6 million in the six months ended June 30, 2023, compared with £7.8 million in the six months ended June 30, 2022, largely due to the discontinuation of the Phase 3 clinical trial of Acelarin in March 2022. Manufacturing costs were £0.2 million in the six months ended June 30, 2023 compared with £1.6 million for the six months ended June 30, 2022, a decrease of £1.4 million primarily due to phasing of NUC-3373 manufacturing activity. Patent costs increased by £1.1 million in the six months ended June 30, 2023 compared with the six months ended June 30, 2022 mainly due to higher patent defense activity in the first quarter of 2023. Other research and development costs decreased by £0.6 million in the six months ended June 30, 2023 compared with the six months ended June 30, 2022, principally due to lower personnel costs and share-based payment expenses.
The following table gives a breakdown of the research and development costs incurred by product candidate for the six months ended June 30, 2023 and 2022:
| For the Six Months Ended June 30, |
||||||||
| 2023 | 2022 | |||||||
| (in thousands) | ||||||||
| £ | £ | |||||||
| NUC-3373 |
6,752 | 5,482 | ||||||
| NUC-7738 |
1,625 | 1,979 | ||||||
| Acelarin |
1,643 | 7,778 | ||||||
| Other |
744 | 613 | ||||||
|
|
|
|
|
|||||
| 10,764 | 15,852 | |||||||
|
|
|
|
|
|||||
Administrative Expenses
Administrative expenses were £3.4 million for the six months ended June 30, 2023 as compared to £4.0 million for the six months ended June 30, 2022, reflecting a decrease of £0.6 million. The decrease was primarily related to lower share-based payment expenses, insurance costs, amortization and professional fees.
Net Foreign Exchange (Losses) Gains
For the six months ended June 30, 2023, we reported a net foreign exchange loss of £1.3 million as compared to a net foreign exchange gain of £4.2 million for the six months ended June 30, 2022. In the six months ended June 30, 2023, the loss arose from cash balances held in U.S. dollars and the U.S. dollar depreciating relative to the U.K. pound sterling. Conversely in the six months ended June 30, 2022, the gain arose from cash balances held in U.S. dollars and the U.S. dollar appreciating relative to the U.K. pound sterling.
Finance Income
Finance income represents bank interest and was £0.5 million for the six months ended June 30, 2023 and £0.2 million for the six months ended June 30, 2022. The increase in bank interest resulted from higher rates of interest being earned on cash deposits.
Income Tax Credit
The income tax credit for the six months ended June 30, 2023, which is largely composed of U.K. research and development tax credits, amounted to £1.7 million as compared to £3.2 million for the six months ended June 30, 2022. The decrease in the income tax credit was primarily attributable to a decrease in our eligible research and development expenses, a decrease in the tax credit rate and an adjustment relating to prior periods of £0.2 million.
Liquidity and Capital Resources
Overview
Since our inception, we have incurred significant operating losses and negative cash flows. We anticipate that we will continue to incur losses for at least the next several years. As a result, we will need additional capital to fund our operations, which we may obtain from additional equity financings, debt financings, research funding, collaborations, contract and grant revenue or other sources.
As of June 30, 2023 and December 31, 2022, we had cash and cash equivalents of £24.6 million and £41.9 million, respectively. We do not currently have any approved products and have never generated any revenue from product sales. To date we have financed our operations primarily through the issuances of our equity securities.
In August 2021, we entered into an “at-the-market” (ATM) sales agreement with Jefferies LLC, or Jefferies, pursuant to which we may periodically sell ADSs having an aggregate offering price of up to $100.0 million through Jefferies acting as our agent. Sales of our ADSs pursuant to this ATM program are subject to certain conditions specified in the sales agreement. Sales under the ATM program are registered on a shelf registration statement on Form F-3 that we filed with the SEC in August 2021, and which permits the offering, issuance and sale by us of up to a maximum aggregate offering price of $400.0 million of our securities, inclusive of our ADSs sold under the ATM program. During the three months and six months ended June 30, 2023, we sold and issued 15,838 ADSs, representing 15,838 ordinary shares, under the ATM program, raising gross proceeds of £11,000.
Cash Flows
Comparison of the Six Months Ended June 30, 2023 and June 30, 2022
The following table summarizes the results of our cash flows for the six months ended June 30, 2023 and 2022.
| For the Six Months Ended June 30, |
||||||||
| 2023 | 2022 | |||||||
| (unaudited) | ||||||||
| (in thousands) | ||||||||
| £ | £ | |||||||
| Net cash used in operating activities |
(16,186 | ) | (17,668 | ) | ||||
| Net cash from (used in) investing activities |
186 | (125 | ) | |||||
| Net cash used in financing activities |
(74 | ) | (147 | ) | ||||
|
|
|
|
|
|||||
| Net decrease in cash and cash equivalents |
(16,074 | ) | (17,940 | ) | ||||
|
|
|
|
|
|||||
Operating Activities
Net cash used in operating activities was £16.2 million for the six months ended June 30, 2023 as compared to £17.7 million for the six months ended June 30, 2022, a net decrease in cash outflows of £1.5 million. Operating loss cash outflows were lower by £4.0 million for the six months ended June 30, 2023, primarily reflecting lower research and development costs. Working capital outflows were £3.4 million in the six months ended June 30, 2023 as compared to working capital outflows of £0.9 million in the six months ended June 30, 2022. The working capital outflows in the six months ended June 30, 2023 included the payment of accruals for clinical trial expenses relating to the Phase 3 clinical trial of Acelarin.
Investing Activities
Net cash from investing activities was £0.2 million for the six months ended June 30, 2023 as compared with net cash used in investing activities of £0.1 million for the six months ended June 30, 2022. Interest received for the six months ended June 30, 2023 was £0.5 million compared with £0.2 million for the six months ended June 30, 2022.
Financing Activities
Net cash used in financing activities was £0.1 million for the six months ended June 30, 2023 as compared to £0.1 million for the six months ended June 30, 2022.
Operating and Capital Expenditure Requirements
We have not achieved profitability on an annual basis since our inception, and we expect to incur net losses in the future.
We believe that our existing capital resources will be sufficient to fund our operations, including currently anticipated research and development activities and planned capital spending, for at least the next 12 months. We carefully manage our capital resources and have sufficient controllable mitigating actions identified to manage our expenditure through the next 12 to 18 months, including management of third-party expenses, such as timing of clinical trial activities, and internal resource costs.
However, our future funding requirements will depend on many factors, including but not limited to:
| • | the scope, rate of progress and cost of our clinical trials, preclinical programs and other related activities; |
| • | the extent of success in our early preclinical and clinical stage research programs, which will determine the amount of funding required to further the development of our product candidates; |
| • | the progress that we make in developing new product candidates based on our proprietary ProTide technology; |
| • | the cost of manufacturing clinical supplies and establishing commercial supplies of our product candidates and any products that we may develop; |
| • | the costs involved in filing and prosecuting patent applications and enforcing and defending potential patent claims; |
| • | the outcome, timing and cost of regulatory approvals of our ProTide product candidates; |
| • | the cost and timing of establishing sales, marketing and distribution capabilities; and |
| • | the costs of hiring additional skilled employees to support our continued growth and the related costs of leasing additional office space. |
Legal Proceedings
From time to time, we may be party to litigation that arises in the ordinary course of our business. Other than as discussed below, we do not have any pending litigation that, separately or in the aggregate, would, in the opinion of management, have a material adverse effect on our results of operations, financial condition or cash flows.
In 2018, we were granted a European patent from the European Patent Office, or EPO, EP 2955190, or EP 190, that covered the composition of matter of a genus of phosphoramidate nucleotide compounds that includes sofosbuvir, sold under the brand name Sovaldi, a leading drug for the treatment of hepatitis C sold by Gilead Sciences, Inc. Later in 2018, Gilead filed an Opposition to our patent at the EPO in an attempt to revoke it. In February 2021, the EPO Opposition Division disagreed with Gilead and upheld amended patent claims that cover sofosbuvir. However, Gilead appealed this decision and, on March 24, 2023, the EPO Technical Board of Appeal issued an oral decision revoking EP 190. This decision is final and has retroactive effect.
Subsequent to the decision of the EPO Opposition Division, but also in February 2021, Gilead Sciences, Inc. and Gilead Sciences Limited filed a lawsuit against us in the Patents Court of the High Court of Justice of England and Wales requesting revocation of the U.K. part of EP 190. In March 2021, we filed a counterclaim against Gilead Sciences, Inc. and Gilead Sciences Limited alleging infringement of our patent resulting from acts including the sale of Sovaldi, as well as its combination products Harvoni, Vosevi and Epclusa, in the U.K. In 2022, we were granted a further European patent from the EPO, EP 3904365, or EP 365, that covered the composition of matter of a smaller genus of phosphoramidate nucleotide compounds that includes sofosbuvir. Gilead Sciences, Inc. and Gilead Sciences Limited subsequently amended their claim to request revocation of the U.K. part of EP 365 and we counterclaimed for infringement. The U.K. Patents Court trial for this case took place between January 20, 2023 and February 3, 2023 and a judgment was handed down by the court on March 21, 2023. In its judgment, the High Court deemed that EP 190 and EP 365 were invalid in the U.K. As a result of this decision, we were liable to pay a proportion of Gilead’s legal fees for these legal proceedings in the U.K. As of June 6, 2023, all reimbursement obligations arising from the patent infringement litigation in the U.K. have been confirmed.
Additionally, in April 2021, we initiated legal proceedings against Gilead Sciences Ireland UC and Gilead Sciences GmbH in the German Regional Court of Dusseldorf for patent infringement for the sale of Sovaldi as well as its combination products Harvoni, Vosevi and Epclusa in Germany. However, as a result of the decision in March 2023 by the EPO Technical Board of Appeal, we abandoned all proceedings in Germany in May 2023 and, as a result, we were liable to pay a proportion of Gilead’s legal fees for these legal proceedings in Germany. As of May 11, 2023, all reimbursement obligations arising from the patent infringement litigation in Germany have been confirmed.
The litigation described above has, and any future litigation regarding our intellectual property could, subject us to significant legal expense. See “Risk Factors - Intellectual property litigation could cause us to spend substantial resources and distract our personnel from their normal responsibilities.” in our Annual Report on Form 20-F for the year ended December 31, 2022.
The litigation described above does not affect the patent protection on any of our product candidates, which are covered by separate patents that were not involved in this litigation.
Exhibit 99.3
NuCana Reports Second Quarter 2023 Financial Results and Provides Business Update
On Track to Present Data Updates from All Ongoing Clinical Studies in the Second Half of 2023
Well Capitalized with Anticipated Cash Runway into 2025
Edinburgh, United Kingdom, August 16, 2023 (GLOBE NEWSWIRE) – NuCana plc (NASDAQ: NCNA) announced financial results for the second quarter ended June 30, 2023 and provided an update on its broad clinical development program with its transformative ProTide therapeutics.
As of June 30, 2023, NuCana had cash and cash equivalents of £24.6 million compared to £31.0 million at March 31, 2023 and £41.9 million at December 31, 2022. NuCana continues to advance its various clinical programs and reported a net loss of £5.4 million for the quarter ended June 30, 2023, as compared to a net loss of £3.9 million for the quarter ended June 30, 2022. Basic and diluted loss per share was £0.10 for the quarter ended June 30, 2023, as compared to £0.07 per share for the comparable quarter ended June 30, 2022.
“During the first half of 2023, we focused on advancing our ProTides through clinical development and look forward to providing data updates from these studies in the second half of this year,” said Hugh S. Griffith, NuCana’s Founder and Chief Executive Officer. “We anticipate data updates from the three ongoing studies of NUC-3373, a ProTide that has the potential to replace 5-FU across multiple tumor types. These studies include: the Phase 2 part of the NuTide:302 study evaluating NUC-3373 combined with leucovorin and either irinotecan (NUFIRI) or oxaliplatin (NUFOX) plus bevacizumab in second-line patients with colorectal cancer; the randomized Phase 2 NuTide:323 study of NUFIRI plus bevacizumab compared to the standard of care FOLFIRI plus bevacizumab in patients with second-line colorectal cancer; and the Phase 1b/2 NuTide:303 modular study of NUC-3373 in combination with pembrolizumab in patients with solid tumors and in combination with docetaxel in patients with lung cancer.”
Mr. Griffith continued: “NUC-7738, our ProTide transformation of 3’-deoxyadenosine continues to progress well. We anticipate sharing data later this year from the Phase 2 part of the NuTide:701 study investigating NUC-7738 as monotherapy in patients with solid tumors and in combination with pembrolizumab in patients with melanoma.”
Mr. Griffith concluded, “With a cash runway expected to extend into 2025 and through many key milestones for both NUC-3373 and NUC-7738, we look forward to a busy and exciting rest of the year as we progress towards our goal of significantly improving treatment outcomes for patients with cancer.”
2023 Anticipated Milestones
| • | NUC-3373 (a ProTide transformation of 5-FU) |
In 2023, NuCana expects to:
| • | Announce data from the Phase 2 (NuTide:302) study of NUC-3373 combined with irinotecan and bevacizumab (NUFIRI-bevacizumab) and in combination with oxaliplatin and bevacizumab (NUFOX-bevacizumab) in second-line patients with colorectal cancer; |
| • | Announce preliminary data from the randomized Phase 2 (NuTide:323) study of NUFIRI-bevacizumab versus the standard of care FOLFIRI-bevacizumab for the second-line treatment of patients with colorectal cancer; and |
| • | Announce data from the Phase 1b (NuTide:303) modular study of NUC-3373 in combination with pembrolizumab in patients with solid tumors and in combination with docetaxel in patients with lung cancer to identify additional indications for development. |
| • | NUC-7738 (a ProTide transformation of 3’-deoxyadenosine) |
In 2023, NuCana expects to:
| • | Announce data from the Phase 1 part of the NuTide:701 study of NUC-7738 in patients with solid tumors; and |
| • | Announce data from the Phase 2 part of the NuTide:701 study of NUC-7738 as monotherapy in patients with solid tumors and in combination with pembrolizumab in patients with melanoma. |
About NuCana
NuCana is a clinical-stage biopharmaceutical company focused on significantly improving treatment outcomes for patients with cancer by applying our ProTide technology to transform some of the most widely prescribed chemotherapy agents, nucleoside analogs, into more effective and safer medicines. While these conventional agents remain part of the standard of care for the treatment of many solid and hematological tumors, they have significant shortcomings that limit their efficacy and they are often poorly tolerated. Utilizing our proprietary technology, we are developing new medicines, ProTides, designed to overcome the key limitations of nucleoside analogs and generate much higher concentrations of anti-cancer metabolites in cancer cells. NuCana’s pipeline includes NUC-3373 and NUC-7738. NUC-3373 is a new chemical entity derived from the nucleoside analog 5-fluorouracil, a widely used chemotherapy agent. NUC-3373 is currently being evaluated in three ongoing clinical studies: a Phase 1b/2 study (NuTide:302) in combination with leucovorin, irinotecan or oxaliplatin, and bevacizumab in patients with metastatic colorectal cancer; a randomized Phase 2 study (NuTide:323) in combination with leucovorin, irinotecan, and bevacizumab for the second-line treatment of patients with advanced colorectal cancer; and a Phase 1b/2 modular study (NuTide:303) of NUC-3373 in combination with the PD-1 inhibitor pembrolizumab for patients with advanced solid tumors and in combination with docetaxel for patients with lung cancer. NUC-7738 is a transformation of 3’-deoxyadenosine, a novel anti-cancer nucleoside analog. NUC-7738 is in the Phase 2 part of a Phase 1/2 study in patients with advanced solid tumors which is evaluating NUC-7738 as a monotherapy and in combination with pembrolizumab.
Forward-Looking Statements
This press release may contain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on the beliefs and assumptions and on information currently available to management of NuCana plc (the “Company”). All statements other than statements of historical fact contained in this press release are forward-looking statements, including statements concerning the Company’s planned and ongoing clinical studies for the Company’s product candidates and the potential advantages of those product candidates, including NUC-3373 and NUC-7738; the initiation, enrollment, timing, progress, release of data from and results of those planned and ongoing clinical studies; the Company’s goals with respect to the development, regulatory pathway and potential use, if approved, of each of its product candidates; the utility of prior non-clinical and clinical data in determining future clinical results; and the sufficiency of the Company’s current cash, cash equivalents and marketable securities to fund its planned operations into 2025. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties set forth in the “Risk Factors” section of the Company’s Annual Report on Form 20-F for the year ended December 31, 2022 filed with the Securities and Exchange Commission (“SEC”) on April 4, 2023, and subsequent reports that the Company files with the SEC. Forward-looking statements represent the Company’s beliefs and assumptions only as of the date of this press release. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, the Company assumes no obligation to publicly update any forward-looking statements for any reason after the date of this press release to conform any of the forward-looking statements to actual results or to changes in its expectations.
Unaudited Condensed Consolidated Statements of Operations
| For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| £ | £ | £ | £ | |||||||||||||
| Research and development expenses |
(3,959 | ) | (6,406 | ) | (10,764 | ) | (15,852 | ) | ||||||||
| Administrative expenses |
(1,754 | ) | (1,889 | ) | (3,402 | ) | (4,040 | ) | ||||||||
| Net foreign exchange (losses) gains |
(564 | ) | 3,077 | (1,259 | ) | 4,208 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating loss |
(6,277 | ) | (5,218 | ) | (15,425 | ) | (15,684 | ) | ||||||||
| Finance income |
178 | 132 | 465 | 163 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss before tax |
(6,099 | ) | (5,086 | ) | (14,960 | ) | (15,521 | ) | ||||||||
| Income tax credit |
685 | 1,194 | 1,679 | 3,226 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss for the period |
(5,414 | ) | (3,892 | ) | (13,281 | ) | (12,295 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Basic and diluted loss per share |
(0.10 | ) | (0.07 | ) | (0.25 | ) | (0.24 | ) | ||||||||
Unaudited Condensed Consolidated Statements of Financial Position as at
| June 30, 2023 | December 31, 2022 | |||||||
| (in thousands) | ||||||||
| £ | £ | |||||||
| Assets |
||||||||
| Non-current assets |
||||||||
| Intangible assets |
2,553 | 2,365 | ||||||
| Property, plant and equipment |
701 | 866 | ||||||
| Deferred tax asset |
113 | 103 | ||||||
|
|
|
|
|
|||||
| 3,367 | 3,334 | |||||||
| Current assets |
||||||||
| Prepayments, accrued income and other receivables |
2,617 | 3,957 | ||||||
| Current income tax receivable |
8,033 | 6,367 | ||||||
| Other assets |
2,596 | 2,684 | ||||||
| Cash and cash equivalents |
24,644 | 41,912 | ||||||
|
|
|
|
|
|||||
| 37,890 | 54,920 | |||||||
|
|
|
|
|
|||||
| Total assets |
41,257 | 58,254 | ||||||
|
|
|
|
|
|||||
| Equity and liabilities |
||||||||
| Capital and reserves |
||||||||
| Share capital and share premium |
143,213 | 143,203 | ||||||
| Other reserves |
77,709 | 75,872 | ||||||
| Accumulated deficit |
(193,540 | ) | (180,573 | ) | ||||
|
|
|
|
|
|||||
| Total equity attributable to equity holders of the Company |
27,382 | 38,502 | ||||||
|
|
|
|
|
|||||
| Non-current liabilities |
||||||||
| Provisions |
58 | 46 | ||||||
| Lease liabilities |
279 | 396 | ||||||
|
|
|
|
|
|||||
| 337 | 442 | |||||||
| Current liabilities |
||||||||
| Trade payables |
4,679 | 4,803 | ||||||
| Payroll taxes and social security |
189 | 162 | ||||||
| Accrued expenditure |
5,384 | 10,002 | ||||||
| Lease liabilities |
286 | 243 | ||||||
| Provisions |
3,000 | 4,100 | ||||||
|
|
|
|
|
|||||
| 13,538 | 19,310 | |||||||
| Total liabilities |
13,875 | 19,752 | ||||||
|
|
|
|
|
|||||
| Total equity and liabilities |
41,257 | 58,254 | ||||||
|
|
|
|
|
|||||
Unaudited Condensed Consolidated Statements of Cash Flows
| For the Six Months Ended June 30, |
||||||||
| 2023 | 2022 | |||||||
| (in thousands) | ||||||||
| £ | £ | |||||||
| Cash flows from operating activities |
||||||||
| Loss for the period |
(13,281 | ) | (12,295 | ) | ||||
| Adjustments for: |
||||||||
| Income tax credit |
(1,679 | ) | (3,226 | ) | ||||
| Amortization and depreciation |
288 | 470 | ||||||
| Movement in provisions |
(1,109 | ) | — | |||||
| Finance income |
(465 | ) | (163 | ) | ||||
| Interest expense on lease liabilities |
16 | 5 | ||||||
| Share-based payments |
2,195 | 2,741 | ||||||
| Net foreign exchange losses (gains) |
1,285 | (4,283 | ) | |||||
|
|
|
|
|
|||||
| (12,750 | ) | (16,751 | ) | |||||
| Movements in working capital: |
||||||||
| Decrease in prepayments, accrued income and other receivables |
1,288 | 295 | ||||||
| (Decrease) increase in trade payables |
(124 | ) | 312 | |||||
| Decrease in payroll taxes, social security and accrued expenditure |
(4,598 | ) | (1,524 | ) | ||||
|
|
|
|
|
|||||
| Movements in working capital |
(3,434 | ) | (917 | ) | ||||
|
|
|
|
|
|||||
| Cash used in operations |
(16,184 | ) | (17,668 | ) | ||||
|
|
|
|
|
|||||
| Net income tax paid |
(2 | ) | — | |||||
|
|
|
|
|
|||||
| Net cash used in operating activities |
(16,186 | ) | (17,668 | ) | ||||
|
|
|
|
|
|||||
| Cash flows from investing activities |
||||||||
| Interest received |
482 | 161 | ||||||
| Payments for property, plant and equipment |
(5 | ) | (10 | ) | ||||
| Payments for intangible assets |
(291 | ) | (276 | ) | ||||
|
|
|
|
|
|||||
| Net cash from (used in) investing activities |
186 | (125 | ) | |||||
|
|
|
|
|
|||||
| Cash flows from financing activities |
||||||||
| Payments for lease liabilities |
(84 | ) | (148 | ) | ||||
| Proceeds from issue of share capital – exercise of share options |
1 | 1 | ||||||
| Proceeds from issue of share capital |
11 | — | ||||||
| Share issue expense |
(2 | ) | — | |||||
|
|
|
|
|
|||||
| Net cash used in financing activities |
(74 | ) | (147 | ) | ||||
|
|
|
|
|
|||||
| Net decrease in cash and cash equivalents |
(16,074 | ) | (17,940 | ) | ||||
| Cash and cash equivalents at beginning of period |
41,912 | 60,264 | ||||||
|
|
|
|
|
|||||
| Effect of exchange rate changes on cash and cash equivalents |
(1,194 | ) | 4,204 | |||||
|
|
|
|
|
|||||
| Cash and cash equivalents at end of period |
24,644 | 46,528 | ||||||
|
|
|
|
|
|||||
For more information, please contact:
NuCana plc
Hugh S. Griffith
Chief Executive Officer
+44 131-357-1111
info@nucana.com
ICR Westwicke
Chris Brinzey
+1 339-970-2843
chris.brinzey@westwicke.com