Member Article

Durham pharma firm closes manufacturing arm to cut losses

Durham-based pharmaceutical firm Quantum Pharma Plc has announced the closure of a loss-making manufacturing operation, a move which tightens the firm’s strategic focus according to the board.

Releasing a trading update, the pharmaceutical developer, manufacturer and supplier disclosed that the level of the company’s net debt is expected to be in the region of £13.5m, as cash management continues to be a key focus for the Group.

Keen to simplify its operations, the business has taken action in the past 3 months to ensure a sounder financial footing moving forward in 2017.

As well as ceasing trading at NuPharm, the firm is prioritising the development of its unlicensed-to-licensed (‘UL2L’) product portfolio, with all UL2L products in the current pipeline now in active development.

Moreover, Quantum Pharma is broadening its commercial partnerships, both in the UK and internationally, to take certain niche generic products already developed or in development to market.

The group is also reducing its net debt through the successful completion of a £15m equity fundraise in November 2016.

Chris Rigg, CEO of Quantum, said: “The Group has made solid progress in simplifying and focusing on its core value opportunities.

“Prioritising the development of the UL2L products in our pipeline has given us a better opportunity to be first to market and drive value from the portfolio.

“We have taken decisive action to close a loss-making operation and have put the Group on a stronger financial footing going forward. I am pleased to report that we are executing in line with our plans.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →