LSE:SNG (Synairgen plc)

FTSE AIM 100 index member Synairgen is a biotech company, which was founded in 2003 and pioneered research using ex-vivo models. Using these models, which use cells collected from patients with a disease, Synairgen has developed two candidate treatments. The first is a Lysyl Oxidase-like 2 enzyme (LOXL2) inhibitor, which has been out-licensed to Australia-based pharmaceutical company Pharmaxis for development. The second is an inhaled interferon-beta (IFN-β) designated SNG001. AstraZeneca licensed SNG001 to investigate its potential for treating chronic lung conditions like Asthma and Chronic Obstructive Pulmonary Disease (COPD) but returned all rights back to Synairgen in 2017. Recently, the potential for SNG001 as a treatment for COVID-19 and other severe lung infections has been investigated all the way to a phase three clinical trial. However, it was announced on 21 February 2022 that SNG001 failed to meet its primary or key secondary endpoints as a treatment for COVID-19 in a hospital setting. Data from a phase two clinical trial investigating SNG001 in the home-based based treatment of COVID-19 is still awaited. Revenue generation has been sporadic at Synairgen, and profits have been made in only one of the last five fiscal years. In 2017 £5.03m was paid by to Synairgen by Pharmaxis as consideration for the change in terms to them assuming all future development, licensing, and financing responsibilities for the LOXL2 inhibitor. The 2017 revenue transferred into a £1.76m profit for Synairgen. A further £0.11m was received in 2018 for service work relating to the LOXL2 inhibitor program. Synairgen is set to receive a 17% royalty on all future LOXL2 inhibitor sales. However, developmental progress has stalled at the phase two clinical trial phase for lung fibrotic conditions, and Pharmaxis is now exploring the role of the LOXL2 inhibitor in the treatment of chronic kidney disease. Astrazeneca paid Synairgen £4.35m to license SNG001 in 2014 and a further £0.03m for related service work in 2015. Prior to this Pfizer a collaboration over SNG001 with Pfizer in 2011 yielded £0.16m in revenue, but nothing else. Synairgen remains a developmental biotech company, without a licensed product on the market.