Sareum, a cancer drug discovery and development company, made a maiden profit after tax on ordinary activities of £400,000 in the year to 30 June, compared with a loss of £1.05 million the year before.
Net assets at period end were £2.34 million, up from £1.86 million a year earlier, of which £2.31 million comprised cash at bank.
A total of £1.50 million was received from Sierra Oncology as the company's share of the $7 million upfront payment from the out-licensing agreement for SRA737. A milestone payment of £450,000 was received following the successful transfer of the two ongoing Phase 1 clinical trials of SRA737.
The company received £229,000 in unspent funds previously invested in clinical development of Chk1 upon the out-licensing of SRA737.
Dr Tim Mitchell, chief executive officer of the company, said: "We are very pleased with the progress made during the period across our pipeline.
"The licensing of SRA737 is an important milestone for several reasons: it places the clinical development and future marketing of this exciting oncology candidate in the hands of a highly experienced and well-funded team; the agreement has the potential to provide substantial funds to Sareum, enabling us to advance and broaden our own pipeline programmes; and overall it provides important validation of our business model and expertise for the design and early development of novel drug candidates that offer attractive licensing opportunities for potential partners.
"We expect further important newsflow in the coming year and look forward to updating shareholders."
At 9:28am: (LON:SAR) Sareum Holdings PLC share price was -0.13p at 0.93p