chairman's statement
Summary of chairman's statement
- Juvista EU Phase 3 trial is pivotal to the future direction of the Group and is on track to report in H1 2011
- Restructuring completed and staff numbers reduced by around one third
- Following the next AGM the Board will consist of three Executive Directors and five Non executive Directors
- Expect to have between £25 million to £30 million cash and deposits at the time of reporting the first EU Phase 3 trial for Juvista in H1 2011
With £65.3 million in cash and investments, Renovo is one of the best funded companies in the sector. Our strong cash balance and reduced annual expenditure as a result of the restructuring operation will leave us with between £25 million to £30 million when our first pivotal Juvista Phase 3 trial reports in H1 2011.
The last year is characterised by two very important decisions for the future of the Group. We have commenced the first EU Phase 3 trial for our lead candidate Juvista and we have decided to restructure the business in order to maximise the prospects of our clinical pipeline of Juvista, Adaprev, Prevascar and Juvidex.
Strategy
The restructuring was undertaken to maximise the cash resources available to the Group when the result of the first Juvista Phase 3 trial is known. We expect to have between £25 million to £30 million remaining in cash and short-term deposits at that time.
The restructuring arose from a detailed internal strategic review which commenced in 2008 and was implemented following discussions and with the support of our major shareholders.
Juvista EU Phase 3 trial
This trial is pivotal to the future direction of the Group and is on track to report in H1 2011. The primary focus of the management team is the successful execution of this trial and the Board is very aware of the tremendous effort throughout the Group to ensure this trial is successful whilst progressing the development of Adaprev, Prevascar and Juvidex, which would be significant products in their own right.
Corporate governance
The Board strives to achieve the highest standards in corporate governance throughout its operations. The Board is aware of the development of the UK Corporate Governance Code and we will comply with any new requirements as far as possible once they are finalised.
Board
The composition of the Board has been carefully considered during the course of the period and I believe the future Board will be well placed to ensure Renovo’s continuing success. Throughout the period of the Board’s reorganisation, the Company’s Audit, Remuneration and Nomination Committees have, and will, consist exclusively of Non-executive Directors. Executive Directors are only able to attend meetings by invitation. I would like to thank all Board members for their hard work, dedication and support during this challenging year.
Executive Directors
As previously announced, Dr Sharon O’Kane, co-founder of Renovo will resign at the forthcoming Annual General Meeting (AGM). Whilst we will be extremely sorry to see Sharon leave, we wish her well for the future.She has clearly made a significant contribution to the success of the Company in the last ten years.
I am pleased to report that David Blain’s appointment as Chief Financial Officer was confirmed by the Board on 1 February 2009, following the period since August 2008 when he was acting on an interim basis.
Non-executive Directors
At the 2009 AGM, we were sorry to see the departure of Dr David Feigal who has been a member of the Board since 2004. David is currently VP Global Regulatory Affairs at Amgen Inc. At the 2010 AGM, Dr Arthur Rosenthal and Dr David Ebsworth will stand down. Art has been appointed CEO of Capella Inc. and David is CEO of Vifor Pharma. I would like to thank all three for their invaluable help and advice, but especially Art who has been a member of the Board since Renovo was founded.
Following the AGM the Board will therefore consist of three Executive and five Non‑executive Directors.
Employees
Renovo has always prided itself on recruiting and retaining exceptional members of staff. It has been, therefore, an extremely difficult process to complete the recent restructuring of the Company where we had to reduce staffing levels by around one third including some who had been with the Company since the commencement of operations in 2000. We are confident they will all succeed in their future careers and I thank all employees for their efforts this year.
I know that those who remain will continue to strive to achieve both their personal and corporate goals and I would like to thank them for their continuing hard work and dedication.
Funding and outlook
With £65.3 million in cash and investments, Renovo is one of the best funded companies in the sector. Our strong cash balance and reduced annual expenditure as a result of the restructuring operation will leave us with between £25 million and £30 million when our first pivotal Juvista Phase 3 trial reports in H1 2011.
MR RODGER PANNONE
CHAIRMAN
Renovo's business strategy is to:
Leverage extensive scientific knowledge to develop commercial product candidates in scar reduction
Be first-to-market with a pharmaceutical product to reduce scarring
Continue to advance the Company's clinical and pre-clinical pipeline
Extend the significant market potential for the Company's lead product candidates to multiple body sites
Pursue a commercialisation strategy working with commercialisation partners to increase speed and depth of market penetration