Merrion reports reduced pretax loss of €5m

LISTED IRISH drug-maker Merrion Pharmaceuticals has reported a pretax loss of €5 million for 2008, down from a loss of €12 million reported in the previous 12 months.

Revenues rose 186 per cent to €1.34 million helped by its alliance with Novo Nordisk, the world’s largest insulin maker, which has resulted in two development and licensing agreements for new products, including oral insulin.

Merrion signed its first agreement, worth $58 million (€44.5 million) with Novo Nordisk in November 2008 and a second partnership for the same amount last January.

Research and development spending rose 17 per cent to €3.9 million while administration costs declined 15 per cent to €2.42 million, the company said in its full-year results.

Merrion is a specialist pharmaceutical firm that develops oral forms of drugs currently administered by injection. The company was formed in 2003 to commercialise technology acquired from Elan.

Chief executive John Lynch said he was pleased with how its partner programmes with Novo Nordisk had progressed.

Merrion said it was “satisfied” with the results. The company had cash reserves of €8.14 million at December 31st, down from €10.8 million a year earlier.

MERRION PHARMA FY results

Revenue:€1.34m (+186%)

Pretax loss:€5.06m (-58.1%)

Diluted loss per share:30 cent (-81.25%)