DEI
DEI | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Abstract] | |
Document Type | 20-F |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Filer Category | Accelerated Filer |
Document Fiscal Year Focus | 2019 |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Verona Pharma PLC |
Entity Central Index Key | 0001657312 |
Current Fiscal Year End Date | --12-31 |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Number of shares outstanding (in shares) | 105,326,638 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current assets: | ||
Goodwill | £ 441 | £ 441 |
Intangible assets | 2,757 | 2,618 |
Property, plant and equipment | 43 | 21 |
Right-of-use assets | 971 | |
Total non-current assets | 4,212 | 3,080 |
Current assets: | ||
Prepayments and other receivables | 2,770 | 2,463 |
Current tax receivable | 7,396 | 4,499 |
Short term investments | 7,823 | 44,919 |
Cash and cash equivalents | 22,934 | 19,784 |
Total current assets | 40,923 | 71,665 |
Total assets | 45,135 | 74,745 |
Capital and reserves attributable to equity holders: | ||
Share capital | 5,266 | 5,266 |
Share premium | 118,862 | 118,862 |
Share-based payment reserve | 10,364 | 7,923 |
Accumulated loss | (100,627) | (68,633) |
Total equity | 33,865 | 63,418 |
Current liabilities: | ||
Derivative financial instrument | 895 | 2,492 |
Lease liability | 460 | |
Trade and other payables | 8,261 | 7,733 |
Total current liabilities | 9,616 | 10,225 |
Non-current liabilities: | ||
Assumed contingent liability | 1,103 | 996 |
Non-current lease liability | 491 | |
Deferred income | 60 | 106 |
Total non-current liabilities | 1,654 | 1,102 |
Total equity and liabilities | £ 45,135 | £ 74,745 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit or loss [abstract] | |||
Research and development costs | £ (33,476) | £ (19,294) | £ (23,717) |
General and administrative costs | (7,607) | (6,297) | (6,039) |
Operating loss | (41,083) | (25,591) | (29,756) |
Finance income | 2,351 | 2,783 | 7,018 |
Finance expense | (474) | (1,325) | (2,465) |
Loss before taxation | (39,206) | (24,133) | (25,203) |
Taxation — credit | 7,265 | 4,232 | 4,706 |
Loss for the year | (31,941) | (19,901) | (20,497) |
Other comprehensive income / (loss): | |||
Exchange differences on translating foreign operations | (33) | 38 | (29) |
Total comprehensive loss attributable to owners of the Company | £ (31,974) | £ (19,863) | £ (20,526) |
Loss per ordinary share — basic and diluted (pence per share) | £ (30.3) | £ (18.9) | £ (23.4) |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash used in operating activities: | |||
Loss before taxation | £ (39,206) | £ (24,133) | £ (25,203) |
Finance income | (2,351) | (2,783) | (7,018) |
Finance expense | 474 | 1,325 | 2,465 |
Share-based payment charge | 2,441 | 2,901 | 2,919 |
Increase in prepayments and other receivables | (484) | (640) | (161) |
Increase in trade and other payables | 449 | 531 | 5,363 |
Depreciation of property, plant, equipment and right of use asset | 398 | 8 | 7 |
Unrealised FX gains/ losses | (8) | 0 | 0 |
Amortization of intangible assets | 106 | 90 | 116 |
Cash used in operating activities | (38,181) | (22,701) | (21,512) |
Cash inflow from taxation | 4,361 | 4,590 | 816 |
Net cash used in operating activities | (33,820) | (18,111) | (20,696) |
Cash flow from investing activities: | |||
Interest received | 887 | 883 | 128 |
Purchase of plant and equipment | (38) | (13) | (9) |
Payment for patents and computer software | (244) | (255) | (208) |
Purchase of short term investments | (7,940) | (59,700) | (54,465) |
Maturity of short term investments | 45,134 | 64,366 | 5,085 |
Net cash generated from / (used in) investing activities | 37,799 | 5,281 | (49,469) |
Cash flow used in financing activities: | |||
Gross proceeds from the April 2017 Global Offering | 0 | 0 | 70,032 |
Transaction costs on April 2017 Global Offering | 0 | 0 | (6,786) |
Repayment of finance lease liabilities | (426) | ||
Net cash (used in) / generated from financing activities | (426) | 0 | 63,246 |
Net increase / (decrease) in cash and cash equivalents | 3,553 | (12,830) | (6,919) |
Cash and cash equivalents at the beginning of the year | 19,784 | 31,443 | 39,785 |
Effect of exchange rates on cash and cash equivalents | (403) | 1,171 | (1,423) |
Cash and cash equivalents at the end of the year | £ 22,934 | £ 19,784 | £ 31,443 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - GBP (£) £ in Thousands | Total | Share Capital | Share Premium | Share-based Payment Reserve | Total Accumulated Losses |
Beginning balance (Previously stated [member]) at Dec. 31, 2016 | £ 34,469 | £ 2,568 | £ 58,526 | £ 2,103 | £ (28,728) |
Loss for the year | (20,497) | (20,497) | |||
Exchange differences on translating foreign operations | (29) | (29) | |||
Total comprehensive loss for the year | (20,526) | (20,526) | |||
New share capital issued | 70,325 | 2,677 | 67,648 | ||
Transaction costs on share capital issued | (7,453) | (7,453) | |||
Share options exercised during the year | 147 | 6 | 141 | ||
Share-based payments | 2,919 | 2,919 | |||
Ending balance at Dec. 31, 2017 | 80,365 | 5,251 | 118,862 | 5,022 | (48,770) |
Loss for the year | (19,901) | (19,901) | |||
Exchange differences on translating foreign operations | 38 | 38 | |||
Total comprehensive loss for the year | (19,863) | (19,863) | |||
New share capital issued | 15 | 15 | 0 | ||
Share-based payments | 2,901 | 2,901 | |||
Ending balance (Previously stated [member]) at Dec. 31, 2018 | 63,418 | 5,266 | 118,862 | 7,923 | (68,633) |
Ending balance at Dec. 31, 2018 | 63,418 | ||||
Loss for the year | (31,941) | (31,941) | |||
Exchange differences on translating foreign operations | (33) | (33) | |||
Total comprehensive loss for the year | (31,974) | (31,974) | |||
Share-based payments | 2,441 | 2,441 | |||
Ending balance at Dec. 31, 2019 | £ 33,865 | £ 5,266 | £ 118,862 | £ 10,364 | £ (100,627) |
General information
General information | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of notes and other explanatory information [Abstract] | |
General information | General information Verona Pharma plc and its subsidiaries (the "Company") are a clinical-stage biopharmaceutical group focused on developing and commercializing innovative therapeutics for the treatment of respiratory diseases with significant unmet medical needs. The Company is a public limited company, which is dual listed on the AIM, a market of the London Stock Exchange, and The Nasdaq Global Market ("Nasdaq"). The company is incorporated and domiciled in the United Kingdom. The address of the registered office is 1 Central Square, Cardiff, CF10 1FS, United Kingdom. The Company has two subsidiaries, Verona Pharma Inc. and Rhinopharma Limited ("Rhinopharma"), both of which are wholly owned. The Company listed its American Depositary Shares ("ADS") on Nasdaq in April 2017 ("the 2017 Global Offering"). The ADSs trade on The Nasdaq the symbol “VRNA” and Verona Pharma’s ordinary shares trade on AIM under the symbol “VRP”. |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |
Accounting policies | Accounting policies A summary of the principal accounting policies, all of which have been applied consistently throughout the year, is set out below. Basis of preparation The consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as issued by the International Accounting Standards Board and IFRS Interpretations Committee applicable to companies reporting under IFRS. The consolidated financial statements have been prepared under the historical cost convention, with the exception of derivative financial instruments which have been measured at fair value. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 4. Going concern The Company has incurred recurring losses since inception, including net losses of £31.9 million , £19.9 million and £20.5 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. In addition, as of December 31, 2019 , the Company had an accumulated loss of £100.6 million . The Company expects to continue to generate operating losses for the foreseeable future. As of the issuance date of the annual consolidated financial statements, the Company expects that its cash and cash equivalents, would be sufficient to fund its operating expenses and capital expenditure requirements for at least 12 months from the issuance date of these annual consolidated financial statements. Accordingly, the consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. The Company intends to initiate its Phase 3 program for the maintenance treatment of COPD once it believes it has alignment with the FDA on its planned design for the Phase 3 clinical program. The Company will require significant additional funding to initiate and complete this Phase 3 program and will need to secure the required capital to fund the program. The Company will seek additional funding through public or private financings, debt financing, collaboration or licensing agreements and other arrangements. However, there is no guarantee that the Company will be successful in securing additional finance on acceptable terms, or at all, and should the Company be unable to raise sufficient additional funds it will be required to defer the initiation of Phase 3 clinical trials, until such funding can be obtained. This could also force the Company to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion or commercialization efforts, or pursue alternative development strategies that differ significantly from its current strategy, which could have a material adverse effect on the Company’s business, results of operations and financial condition. Business combination The Company applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Company. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. The excess of the cost of acquisition over the fair value of the Company's share of the identifiable net assets acquired is recorded as goodwill. Goodwill arising on acquisitions is capitalized and is subject to an impairment review, both annually and when there are indications that the carrying value may not be recoverable. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred and included in administrative expenses. Basis of consolidation These consolidated financial statements include the financial statements of Verona Pharma plc and its wholly owned subsidiaries Verona Pharma, Inc. and Rhinopharma. The acquisition method of accounting was used to account for the acquisition of Rhinopharma. Inter-company transactions, balances and unrealized gains on transactions between group companies are eliminated. Verona Pharma Inc. and Rhinopharma adopt the same accounting policies as the Company. Foreign currency translation Items included in the Company's consolidated financial statements are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in pounds sterling ("£"), which is the functional and presentational currency of the Company. Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date and the gains or losses on translation are included in the Consolidated Statement of Comprehensive Income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the original transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The assets and liabilities of foreign operations are translated into pounds sterling at the rate of exchange ruling at the balance sheet date. Income and expenses are translated at weighted average exchange rates for the period. The exchange differences arising on translation for consolidation are recognized in Other Comprehensive Income. Cash and cash equivalents Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. Deferred taxation Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and expected to apply when the related deferred tax is realized or the deferred liability is settled. Deferred tax assets are recognized to the extent that it is probable that the future taxable profit will be available against which the temporary differences can be utilized. Research and development costs Capitalization of expenditure on product development commences from the point at which technical feasibility and commercial viability of the product can be demonstrated and the Company is satisfied that it is probable that future economic benefits will result from the product once completed. No such costs have been capitalized to date. Expenditure on research and development activities that do not meet the above criteria is charged to the Consolidated Statement of Comprehensive Income as incurred. Property, plant and equipment Property, plant and equipment are stated at cost, net of depreciation and any provision for impairment. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Depreciation is calculated to write off the cost less their estimated residual values, on a straight-line basis over the expected useful economic lives of the assets concerned. The principal annual periods used for this purpose are: Computer hardware 3 years Intangible assets and goodwill (a) Goodwill Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration transferred over the fair value of the identifiable net assets acquired. (b) Patents Patent costs associated with the preparation, filing, and obtaining of patents are capitalized and amortized on a straight-line basis over the estimated useful lives of ten years . (c) Computer software Amortization is calculated so as to write off the cost less estimated residual values, on a straight-line basis over the expected useful economic life of two years. (d) In-process research & development ("IP R&D") The IP R&D asset acquired through a business combination, that had not reached technical feasibility, was initially recognized at fair value. Subsequent movements in the assumed contingent liability (see 2.12) that relate to changes in estimated cashflows or probabilities of success are recognized as additions to the IP R&D asset that it relates to. There were no changes in estimated cashflows or probabilities of success in the years ended 31 December, 2019, or 2018. This is a change in accounting policy as prior to January 1, 2019, movements in the assumed contingent liability were taken to the Statement of Comprehensive Income (see note 2.17). As a result of the change in accounting policy £484 thousand was restated from Accumulated Loss to the IP R&D asset. The asset is subject to impairment testing until completion, abandonment of the project or when the research findings are commercialized through a revenue generating project. The Company determines whether intangible assets are impaired on an annual basis or when there is an indication of impairment. Impairment of intangible assets, goodwill and non-financial assets The Company holds intangible assets relating to acquired IP R&D, patent costs and goodwill. Goodwill and intangible assets are tested annually for impairment or if there is an indication of impairment. The Company is a single cash generating unit ("CGU") so all intangibles are allocated to the Company as one CGU. As at 31 December, 2019, and 2018 the Company carried out impairment reviews with reference to its market capitalization. At points during the year ended 31 December 2019, the Company's market capitalization was less than its net assets. As a result, the Company carried out an impairment review by forecasting expected sales of ensifentrine, delivered by nebulizer for the maintenance treatment of chronic COPD, and associated costs. This cashflow forecast was then discounted to its net present value to demonstrate that the value in use of the ensifentrine was greater than the Company's net assets. The Company was required to make various estimates and assumptions as inputs for this model including, but not limited to: • market size and product acceptance by clinicians, patients and reimbursement bodies; • gross and net selling price; • costs of manufacturing, product distribution and marketing support; • costs of the Company's overhead; • size and make up of a sales force; • probabilities of success; and • discount rate. Employee Benefits (a) Pension The Company operates defined contribution pension schemes for its employees. Contributions payable for the year are charged to the Consolidated Statement of Comprehensive Income. The Company has no further liability once the contributions have been paid. (b) Bonus plans The Company recognizes a liability and an expense for bonus plans if contractually obligated or if there is a past practice that has created a constructive liability. Share-based payments The Company operates a number of equity-settled, share-based compensation schemes. The fair value of share based payments is determined using the Black-Scholes model and requires several assumptions and estimates as disclosed in note 17. The fair value of share-based payments under these schemes is expensed on a straight-line basis over the share based payments' vesting periods, based on the Company's estimate of shares that will eventually vest. Provisions Provisions are recognized when the Company has a present legal or constructive liability as a result of past events, it is probable that an outflow of resources will be required to settle the liability, and the amount can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the liability using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Assumed contingent liability related to the business combination In 2006 the Company acquired Rhinopharma and assumed contingent liabilities owed to Vernalis Pharmaceuticals Limited which was subsequently acquired by Ligand Pharmaceuticals, Inc. (“Ligand”). The Company refers to the assignment and license agreement as the Ligand Agreement. Ligand assigned to the Company all of its rights to certain patents and patent applications relating to ensifentrine and related compounds (the "Ligand Patents") and an exclusive, worldwide, royalty-bearing license under certain Ligand know-how to develop, manufacture and commercialize products (the "Licensed Products") developed using Ligand Patents, Ligand know-how and the physical stock of certain compounds. The assumed contingent liability comprises a milestone payment on obtaining the first approval of any regulatory authority for the commercialization of a Licensed Product, low to mid-single digit royalties based on the future sales performance of all Licensed Products and a portion equal to a mid-twenty percent of any consideration received from any sub-licensees for the Ligand Patents and for Ligand know-how. The liability was initially recognized at fair value and subsequently measured at amortized cost. The assumed contingent liability is estimated as the expected value of the milestone payment and royalty payments. This expected value is based on estimated future royalties payable, derived from sales forecasts, and an assessment of the probability of success using standard market probabilities for respiratory drug development. The risk-weighted value of the assumed contingent arrangement is discounted back to its net present value applying an effective interest rate of 12% . Royalties payable are based on the future sales performance so the amount payable is unlimited. Sales that may be achieved are difficult to predict and subject to estimate, which is inherently uncertain. The assumed contingent liability is accounted for as a liability and its value is measured at amortized cost using the effective interest rate method, and is re-measured for changes in estimated cash flows or when the probability of success changes. Remeasurements relating to changes in estimated cash flows and probabilities of success are recognized in the IP R&D asset it relates to ("see 2.7"). This is a change in accounting policy for the year ended December 1, 2019 (see 2.17). The unwind of the discount is recognized in finance expense. Financial instruments — initial recognition and subsequent measurement The Company classifies a financial instrument, or its component parts, as a financial liability, a financial asset or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, a financial asset and an equity instrument. A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. (a) Financial assets, initial recognition and measurement and subsequent measurement The Company has no financial assets recorded at fair value through profit or loss ("FVPTL"). All assets are initially recognized initially at fair value plus transaction costs and subsequently measured at amortized cost using the effective interest method. (b) Financial liabilities, initial recognition and measurement and subsequent measurement Financial liabilities are classified as measured at amortized cost or FVTPL. The Company's warrants are classified as FVTPL and fair value gains and losses are recognized in profit or loss. Other financial liabilities are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss. The Company's financial liabilities include trade and other payables, the Company's warrants and the assumed contingent liability. (c) Derivative financial instruments Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at fair value at the end of each reporting date. The Company holds one type of derivative financial instrument, the warrants, as explained in Note 2.14. The full fair value of the derivative is classified as a non-current liability when the warrants are exercisable in more than 12 months and as a current liability when the warrants are exercisable in less than 12 months. Changes in fair value of a derivative financial liability when related to a financing arrangement are recognized in the Consolidated Statement of Comprehensive Income within Finance Income or Finance Expense. arrants Warrants issued by the Company to investors as part of a share subscription are compound financial instruments where the warrant meets the definition of a financial liability. The financial liability component is initially measured at fair value in the Consolidated Statement of Financial Position. Equity is measured at the residual between the subscription price for the entire instrument and the liability component. The financial liability component is remeasured. Equity is not remeasured. Short Term Investments Short term investments include fixed term deposits held at banks with original maturities between three months and a year. They are classified as loans and receivables and are measured at amortized cost using the effective interest method. Transaction costs Qualifying transaction costs might be incurred in anticipation of an issuance of equity instruments and may cross reporting periods. The entity defers these costs on the balance sheet until the equity instrument is recognized. Deferred costs are subsequently reclassified as a deduction from equity when the equity instruments are recognized, as the costs are directly attributable to the equity transaction. If the equity instruments are not subsequently issued, the transaction costs are expensed. Any costs not directly attributable to the equity transaction are expensed. Transaction costs that relate to the issue of a compound financial instrument are allocated to the liability and equity components of the instrument in proportion to the allocation of proceeds. Where the liability component is held at fair value through profit or loss, the transaction costs are expensed to the Consolidated Statement of Comprehensive Income. For liabilities held at amortized cost, transaction costs are deducted from the liability and subsequently amortized. The amount of transaction costs accounted for as a deduction from equity in the period is disclosed separately in accordance with International Accounting Standard (“IAS 1”). Investments in subsidiaries Investments in subsidiaries are shown at cost less any provision for impairment. New standards, amendments and interpretations adopted by the Company The following standard has been adopted by the Company for the first time for the financial year beginning on or after January 1, 2019: ▪ IFRS 16 "Leases" The Company adopted IFRS 16 on January 1, 2019, and, as a consequence, changed its accounting policies. See note 2.17. New standards, amendments and interpretations issued but not effective for the financial year beginning January 1, 2019 and not early adopted There are no IFRS standards or interpretations not yet effective that would be expected to have a material impact on the Group. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments | Financial Instruments Financial Risk Factors The Company's activities have exposed it to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk, and liquidity risk. The Company's overall risk management program is focused on preservation of capital and the unpredictability of financial markets and has sought to minimize potential adverse effects on the Company's financial performance and position. (a) Currency risk Foreign currency risk reflects the risk that the Company's net assets will be negatively impacted due to fluctuations in exchange rates. The Company has not entered into foreign exchange contracts to hedge against gains or losses from foreign exchange fluctuations. The summary data about the Company's exposure to currency risk is as follows. Figures are the pound sterling values of balances in each currency: December 31, 2019 December 31, 2018 GBP USD EUR GBP USD EUR £'000s £'000s £'000s £'000s £'000s £'000s Cash and cash equivalents 18,517 4,399 18 11,293 8,470 21 Short term Investments 6,316 1,507 — 19,850 25,069 — Trade and other payables 3,226 4,306 728 2,872 4,329 532 Sensitivity Analysis A reasonably possible strengthening or weakening of the Euro or U.S. dollar against pounds sterling as of December 31, 2019 and 2018 would have affected the measurement of the financial instruments denominated in a foreign currency (excluding the assumed contingent liability). The following table shows how a movement in a currency would give rise to a profit or (loss) and a corresponding entry in equity. Profit or loss and equity Strengthening Weakening December 31, 2019 £'000s £'000s EUR (5% movement) (36 ) 36 USD (5% Movement) 80 (80 ) December 31, 2018 £'000s £'000s EUR (5% movement) (26 ) 26 USD (5% Movement) 1,461 (1,461 ) Foreign currency denominated trade payables are short term in nature (generally 30 to 45 days). The Company has a U.S. operation, the net assets of which are exposed to foreign currency translation risk. Estimated cashflows relating to the assumed contingent liability are predominantly denominated in US dollars. In the years ended December 31, 2019, and 2018, movements in foreign exchange rates were not material and no sensitivity analysis is therefore provided. (b) Credit risk Credit risk reflects the risk that the Company may be unable to recover contractual receivables. As the Company is still in the development stage no policies are currently required to mitigate this risk. For banks and financial institutions, only independently rated parties with a minimum rating of "B+" are accepted. The Directors recognize that this is an area in which they may need to develop specific policies should the Company become exposed to further financial risks as the business develops. As of December 31, 2019 , and December 31, 2018 , cash and cash equivalents and short term investments were placed at the following banks: Cash and Cash Equivalents Year ended December 31, 2019 Credit rating Year ended December 31, 2018 Credit rating £'000 £'000 Banks Royal Bank of Scotland 1 A1 150 A1 Lloyds Bank 8,355 Aa3 15,862 Aa3 Citibank 6,529 Aa3 3,135 A1 Barclays 1,968 A1 449 A2 Wells Fargo 111 Aa1 188 Aa1 Close Brothers 5,970 Aa3 — — Total 22,934 19,784 Short Term Investments Year ended December 31, 2019 Credit Year ended December 31, 2018 Credit £'000 £'000 Banks Royal Bank of Scotland 5,616 A1 9,186 A1 Lloyds Bank — Aa3 1,567 Aa3 Standard Chartered — A1 15,450 A1 Citibank — Aa3 7,053 A1 Barclays 2,207 A1 11,663 A2 Total 7,823 44,919 (c) Management of capital The Company considers capital to be its equity reserves. At the current stage of the Company's life cycle, the Company's objective in managing its capital is to ensure funds raised meet the research and operating requirements until the next development stage of the Company's suite of projects. The Company ensures it is meeting its objectives by reviewing its Key Performance Indicators to ensure the research activities are progressing in line with expectations, costs are controlled and unused funds are placed on deposit to conserve resources and increase returns on surplus cash held. (d) Interest rate risk As of December 31, 2019 , the Company had cash deposits of £22.9 million ( 2018 : £19.8 million ) and short term investments of £7.8 million ( 2018 : £44.9 million). The rates of interest received during 2019 ranged between 0.0% and 2.87% . A 0.25% increase in interest rates would not have a material impact on finance income. The Company's exposure to interest rate risk, which is the risk that the interest received will fluctuate as a result of changes in market interest rates on classes of financial assets and financial liabilities, was as follows: December 31, 2019 December 31, 2018 Floating interest rate Fixed interest rate Floating interest rate Fixed interest rate £'000s £'000s £'000s £'000s Financial asset Cash deposits 10,006 12,928 15,082 4,702 Short Term Investments — 7,823 — 44,919 Total 10,006 20,751 15,082 49,621 (e) Liquidity risk The Company periodically prepares working capital forecasts for the foreseeable future, allowing an assessment of the cash requirements of the Company, to manage liquidity risk. The following table provides an analysis of the Company's financial liabilities. The carrying value of all balances approximates to their fair value. The Company's maturity analysis for the derivative financial instrument from the issue of warrants is given in note 18. LESS THAN 1 YEAR BETWEEN 1 AND 2 YEARS BETWEEN 2 AND 5 YEARS OVER 5 YEARS £'000s £'000s £'000s £'000s At December 31, 2019 Trade payables 1,455 — — — Accruals 6,806 — — — Lease liability 476 557 — — Assumed contingent liability (1) — — — 1,807 Total 8,737 557 — 1,807 • This table includes the undiscounted amount of the assumed contingent liability. See note 20. LESS THAN 1 YEAR BETWEEN 1 AND 2 YEARS BETWEEN 2 AND 5 YEARS OVER 5 YEARS £'000s £'000s £'000s £'000s At December 31, 2018 Trade payables 2,839 — — — Other payables 12 — — — Accruals 4,882 — — — Assumed contingent liability (1) — — — 1,807 Total 7,733 — — 1,807 (1) This table includes the undiscounted amount of the assumed contingent liability. See note 20. Fair value estimation The carrying amounts of cash and cash equivalents, receivables, accounts payable and accrued liabilities approximate to fair value due to their short-term nature. The carrying amount of the assumed contingent liability approximates to fair value as the underlying assumptions are currently similar. For financial instruments that are measured in the Consolidated Statement of Financial Position at fair value, IFRS 7 requires disclosure of fair value measurements by level of the following fair value measurement hierarchy: ▪ Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1); ▪ Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly (level 2); and ▪ Inputs for the asset or liability that are not based on observable market data (level 3). For the year ended December 31, 2019 , and 2018 , fair value adjustments to financial instruments measure at fair value through profit and loss resulted in the recognition of finance income of £ 1.6 million in 2019 and a finance loss of £1.2 million in 2018 . The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to ascertain the fair value of an instrument are observable, the instrument is included in level 2. If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. Level 3 Total £'000s £'000s At December 31, 2019 Derivative financial instrument 895 895 Total 895 895 Movements in Level 3 items during the years ended December 31, 2019 , and 2018 are as follows: Derivative financial instrument 2019 2018 £'000s £'000s At January 1 2,492 1,273 Fair value adjustments recognized in profit and loss (1,597 ) 1,219 At December 31 895 2,492 Further details relating to the derivative financial instrument are set out in notes 4 and 18 of these financial statements. In determining the fair value of the derivative financial instrument, the Company applied the Black Scholes model; key inputs include the share price at reporting date, estimations on timelines, volatility and risk-free rates. These assumptions and the impact of changes in these assumptions, where material, are disclosed in note 18. Change in liabilities arising from financing activities The Company has provided a reconciliation so that changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes can be evaluated. 2019 Derivative financial instrument £'000s At January 1 2,492 Fair value adjustments - non cash (1,597 ) At December 31 895 See note 18 for information relating to the derivative financial instrument. 2019 Lease liability £'000s At January 1 316 Capitalization of rental leases - non cash 1,061 Payment of lease liability - cash (426 ) At December 31 951 See note 14 and note 2.17 for information relating to the capitalized leases. |
Critical accounting estimates a
Critical accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |
Critical accounting estimates and judgments | Critical accounting estimates and judgments The preparation of financial statements in conformity with IFRS requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, actual results ultimately may differ from those estimates. IFRS also requires management to exercise its judgment in the process of applying the Company's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are as follows: (a) Assumed contingent liability The Company has a material liability for the future payment of royalties and milestones associated with contractual liabilities on ensifentrine, acquired as part of the acquisition of Rhinopharma. The estimation of the amounts and timing of future cashflows requires the forecast of royalties payable and the estimation of the likelihood that the regulatory approval milestone will be achieved (see notes 2.12 and 20). The estimates for the assumed contingent liability are based on a discounted cash flow model. Key estimates included the calculation of deferred consideration are: ▪ development, regulatory and marketing risks associated with progressing the product to market approval in key target territories; ▪ market size and product acceptance by clinicians, patients and reimbursement bodies; ▪ gross and net selling price; ▪ launch of competitive products; ▪ probabilities of success; and ▪ time to crystallization of contingent consideration. When there is a change in the expected cash flows or probabilities of success, the assumed contingent liability is re-measured with the change in value recognized in the IP R&D asset it relates to. This is a change in accounting policy for the year ended December 1, 2019 (see 2.17). The assumed contingent liability is measured at amortized cost with the discount unwinding in finance expense throughout the year. Actual outcomes could differ significantly from the estimates made. The Company has judged that the probabilities of success will change when it moves from one stage of clinical development to another. Management have determined that, for the purposes of assessing probabilities of success, the Company will move from Phase 2 to Phase 3 after an End of Phase 2 Meeting with the Food and Drug Administration ("FDA") in the US that provides confidence over ensifentrine's historical development program and planned Phase 3 program. A remeasurement of the liability at this time is likely to result in a significant increase in both the liability and the corresponding IP R&D asset.The Company has previously announced that it expects to meet with the FDA in the first half of 2020. The Company notes that there is no guarantee that the meeting will take place in the timeframe anticipated or that there will be a successful outcome. Should the probabilities of success and estimates of cash flows change there will be a material increase in the assumed contingent liability and corresponding IP R&D asset. The amount will be dependent on feedback from the FDA and the probabilities of success applied. Should the Company determine that it has moved from Phase 2 to Phase 3 then the value of the liability could increase by between £15 million and £30 million ; the increase in the value of the liability will give rise to an approximately equivalent increase in the value of the IP R&D asset, as described further in Note 2.7. The value of the assumed contingent liability as of December 31, 2019 amounted to £1.1 million . ( 2018 : £1.0 million ). (b) Valuation of the Derivative Financial Liability In July 2016, the Company issued 31,115,926 units to new and existing investors at the placing price of £1.4365 per unit. Each unit comprises one ordinary share and one warrant. The warrants entitle the investors to subscribe for in aggregate a maximum of 12,401,262 ordinary shares. In accordance with IAS 32 and the Company’s accounting policy, as disclosed in note 2.14, the Company classified the warrants as a derivative financial liability to be presented on the Company's Consolidated Statement of Financial Position. The fair value of these warrants is determined by applying the Black-Scholes model. Assumptions are made on inputs such as term, volatility and risk free rate in order to determine the fair value per warrant. For further details see note 18. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of earnings per share [Abstract] | |
Earnings per share | Earnings per share Basic loss per ordinary share of 30.3p ( 2018 : 18.9p and 2017 : 23.4 p) for the Company is calculated by dividing the loss for the year ended December 31, 2019 by the weighted average number of ordinary shares in issue of 105,326,638 as of December 31, 2019 ( 2018 : 105,110,504 and 2017 : 87,748,031 ). Potential ordinary shares are not treated as dilutive as the entity is loss making and such shares would be anti-dilutive. |
Segmental reporting
Segmental reporting | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of entity's operating segments [Abstract] | |
Segmental reporting | Segmental reporting The Company’s activities are covered by one operating and reporting segment: Drug Development. There have been no changes to management’s assessment of the operating and reporting segment of the Company during the year. All non-current assets are based in the United Kingdom. |
Operating loss
Operating loss | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Operating loss | Operating loss Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Operating Loss is stated after charging / (crediting): Research and development costs: Employee benefits (note 8) 4,688 3,360 3,435 Amortization of patents (note 12) 102 85 111 Legal, professional consulting and listing fees 537 161 331 Other research and development expenses 28,149 15,688 19,840 Total research and development costs 33,476 19,294 23,717 General and administrative costs: Employee benefits (note 8) 3,093 3,240 2,857 Legal, professional consulting and listing fees 2,155 1,296 2,045 Amortization of computer software (note 12) 4 5 5 Depreciation of property, plant and equipment (note 13) 16 8 7 Depreciation of right-of-use assets (note 14) 382 — — Operating lease charge — land and buildings — 384 294 Loss / (gain) on variations in foreign exchange rate 345 (9 ) 36 Other general and administrative expenses 1,612 1,373 795 Total general and administrative costs 7,607 6,297 6,039 Operating loss 41,083 25,591 29,756 |
Directors' emoluments and staff
Directors' emoluments and staff costs | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Directors' emoluments and staff costs | Directors' emoluments and staff costs Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 The average number of employees (excluding directors) of the Company during the year: Research and development 13 7 7 General and administrative 9 7 5 Total 22 14 12 Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Aggregate emoluments of directors: Salaries and other short-term employee benefits 850 830 897 Social security costs 112 94 103 Incremental payment for additional services 26 26 — Other pension costs 10 10 17 Total directors' emoluments 998 960 1,017 Share-based payment charge 925 1,337 1,037 Directors' emoluments including share-based payment charge 1,923 2,297 2,054 Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Aggregate executive officers costs: Wages and salaries 1,150 857 864 Social security costs 98 83 81 Share-based payment charge 751 769 1,332 Other pension costs 21 19 17 Total executive officers costs 2,020 1,728 2,294 Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Aggregate other staff costs: Wages and salaries 2,788 1,622 1,272 Social security costs 265 150 101 Share-based payment charge 765 795 550 Other pension costs 46 34 21 Total other staff costs 3,864 2,601 1,944 The Company considers key management personnel to comprise directors and executive officers. The Company operates defined contribution pension schemes for its employees and executive director. The total pension cost during the year ended December 31, 2019 was £77 thousand ( 2018 : £63 thousand and 2017 : £ 55 thousand ). There were no prepaid or accrued contributions to the scheme at December 31, 2019 ( 2018 and 2017 : £ nil ). |
Finance income and expense
Finance income and expense | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Finance income and expense | Finance income and expense Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Finance income: Interest received on cash balances 754 861 345 Foreign exchange gain on translating foreign currency denominated balances — 1,922 — Fair value adjustment on derivative financial instruments (note 18) 1,597 — 6,650 Other Income — — 23 Total finance income 2,351 2,783 7,018 Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Finance expense: Fair value adjustment on derivative financial instruments (note 18) — 1,219 — Interest on discounted lease liability 50 — — Foreign exchange loss on translating foreign currency denominated balances 305 — 2,392 Unwinding of discount factor related to the assumed contingent arrangement (note 20) 119 106 73 Total finance expense 474 1,325 2,465 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of income tax [Abstract] | |
Taxation | Taxation Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Analysis of tax credit for the year Current tax: U.K. tax credit (7,250 ) (4,290 ) (5,006 ) U.S. tax charge 56 30 306 Adjustment in respect of prior periods (71 ) 28 (6 ) Total tax credit (7,265 ) (4,232 ) (4,706 ) The difference between the total tax shown above and the amount calculated by applying the standard rate of tax to the loss before tax is as follows: Factors affecting the tax credit for the year Loss on ordinary activities before taxation (39,206 ) (24,133 ) (25,203 ) Multiplied by standard rate of corporation tax of 19% (2018: 19% and 2017: 19.25%) (7,449 ) (4,585 ) (4,852 ) Effects of: Non-deductible expenses 515 540 675 Fair value adjustment on derivative financial instruments (303 ) 232 (1,280 ) Research and development incentive (3,119 ) (1,846 ) (2,116 ) Temporary differences not recognized (6 ) (3 ) (2 ) Difference in overseas tax rates 16 8 136 Tax losses carried forward not recognized 3,152 1,394 2,739 Adjustment in respect of prior periods (71 ) 28 (6 ) Total tax credit (7,265 ) (4,232 ) (4,706 ) U.K. corporation tax is charged at 19% ( 2018 : 19.00% and 2017 : 19.25% ) and U.S. federal and state tax at 27.6% ( 2018 : 27.6% and 2017 : 35% ). The following tables represent deferred tax balances recognized in the Consolidated Statement of Financial Position. There were no movements in either the deferred tax asset or the deferred tax liability. As at December 31, 2019 As at December 31, 2018 £'000s £'000s Deferred tax assets 332 250 Deferred tax liabilities (332 ) (250 ) Net balances — — The deferred tax liability relates to the difference between the accounting and tax bases of the IP R&D intangible asset. A deferred tax asset relating to UK tax losses has been recognized and offset against the liability. Factors that may affect future tax charges The Company has U.K. tax losses available for offset against future profits in the United Kingdom. However an additional deferred tax asset has not been recognized in respect of such items due to uncertainty of future profit streams. As of December 31, 2019 , the unrecognized deferred tax asset at 17% is estimated to be £ 9.27 million ( 2018 : £6.65 million at 17% ). |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |
Goodwill | Goodwill As of December 31, 2019 As of December 31, 2018 £'000s £'000s Goodwill at January 1 and December 31 441 441 Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in connection with the acquisition of Rhinopharma in September 2006. Goodwill is not amortized, but is tested annually for impairment. The Company has one CGU so goodwill is tested for impairment together with its intangible assets. It was tested with reference to the Company's market capitalization as of December 31, 2019 , the date of testing of IP R&D and goodwill impairment. The market capitalization of the Company was approximately £65.3 million as of December 31, 2019 , ( 2018 : 92.2 million ) compared to the Company's net assets of £33.9 million ( 2018 : £ 63.4 million ). Therefore, no impairment was required. The Company notes that after the reduction in its share price since December 31, 2018, and before the increase by December 31, 2019, at various points in the three months to March 31, 2019, the market value of the Company was less than its net book value. The Company therefore carried out an impairment review as at March 31, 2019. From market research the Company assessed, among other inputs, potential patient numbers from likely physician prescribing patterns, price points, the time from possible launch to peak sales, script rejection, attrition rates and probability of success. The Company also carried out a sensitivity analysis on key assumptions and assessed that a reasonable change in these assumptions would not lead to the value in use falling below net book value. Consequently, management determined that the Company's value in use exceeded the carrying value of the Company's assets and that no impairment was required. At various other points in the year ended December 31, 2019, the market value of the Company was less than its net book value. Consequently, management re-performed the impairment review quarterly, and identified no changes to market conditions, the competitive landscape, market research insights or other factors that would change its conclusions. As a result, management determined that the Company's value in use exceeded the carrying value of the Company's assets and that no impairment was required at those dates. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |
Intangible assets | Intangible assets IP R&D Computer software Patents Total £'000s £'000s £'000s £'000s Cost At January 1, 2018 (Restated) 1,953 11 727 2,691 Additions — 4 251 255 Disposals — — (6 ) (6 ) At December 31, 2018 (Restated) 1,953 15 972 2,940 Accumulated amortization At January 1, 2018 — 6 232 238 Charge for year — 5 85 90 Disposals — — (6 ) (6 ) At December 31, 2018 — 11 311 322 Net book value At December 31, 2018 (Restated) 1,953 4 661 2,618 IP R&D Computer software Patents Total £'000s £'000s £'000s £'000s Cost At January 1, 2019 1,953 15 972 2,940 Additions — 3 242 245 At December 31, 2019 1,953 18 1,214 3,185 Accumulated amortization At January 1, 2019 — 11 311 322 Charge for year — 4 102 106 At December 31, 2019 — 15 413 428 Net book value At December 31, 2019 1,953 3 801 2,757 Intangible assets comprise patents, computer software and an IP R&D asset that arose on the acquisition of Rhinopharma and investment in patents to protect ensifentrine. The IP R&D asset acquired through the business combination was initially recognized at fair value. Subsequent movements in the assumed contingent liability that relate to changes in estimated cash flows or probabilities of success are recognized as additions to the IP R&D asset that it relates to. This is a change in accounting policy (see note 2.17). The asset is not amortized and is tested annually for impairment. Patents are amortized over a period of ten years and are tested annually for impairment. Intangible assets are tested for impairment with goodwill, as the Company has only one CGU. See note 11 for information about the impairment review. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | Property, plant and equipment Computer hardware Total £'000s £'000s Cost At January 1, 2018 26 26 Additions 13 13 At December 31, 2018 39 39 Accumulated depreciation At January 1, 2018 10 10 Charge for the year 8 8 At December 31, 2018 18 18 Net book value At December 31, 2018 21 21 Computer hardware Total £'000s £'000s Cost At January 1, 2019 39 39 Additions 38 38 At December 31, 2019 77 77 Accumulated depreciation At January 1, 2019 18 18 Charge for the year 16 16 At December 31, 2019 34 34 Net book value At December 31, 2019 43 43 |
Right-of-use assets - property
Right-of-use assets - property leases Right-of-use assets - property leases | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of leases [Abstract] | |
Right-of-use assets - property leases | Right-of-use assets - property leases The right-of-use asset relates to rented office space in London and New York where the Company generally enters in to leases for terms of less than three years. Before the adoption of IFRS 16 these leases were classified as operating leases. The Consolidated Statement of Financial Position shows the following amounts relating to leases: Year ended December 31, 2019 As of January 1, 2019* £'000s £'000s Right-of-use assets Right-of-use assets 971 326 971 326 Lease liabilities Current (460 ) (316 ) Non Current (491 ) — (951 ) (316 ) Additions to the right-of-use assets were £ 1,047,000 and were recognized when the Company was reasonably certain to extend the leases. The additions related to both of the Company's office locations, both of which agreements have similar terms and conditions. To calculate the value of the lease liabilities the Company applied a discount rate of 8% . The leases end in 2021 and 2022 and include options to extend them. The Company has determined it is not yet reasonably certain to operate the option to extend the leases and so has recognized lease payments only to these points in its calculation of the lease liabilities. The right-of-use lease assets are depreciated over the term of the leases. The Consolidated Statement of Comprehensive Income includes the following amounts relating to leases: Year ended December 31, 2019 Year ended December 31, 2018 £'000s £'000s Depreciation charge of right-of-use assets Right-of-use assets (382 ) — (382 ) — Interest expense (including finance cost) 50 — Expense relating to short-term leases (included in general and administrative expenses) 78 — The total cash outflow for leases in 2019 was £ 492,000 . |
Prepayments and other receivabl
Prepayments and other receivables | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Prepayments and other receivables | Prepayments and other receivables As of December 31, 2019 As of December 31, 2018 £'000s £'000s Prepayments 1,309 1,362 Other receivables 1,461 1,101 Total prepayments and other receivables 2,770 2,463 The prepayments balance includes prepayments for insurance and clinical activities. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of share capital, reserves and other equity interest [Abstract] | |
Share Capital | Share Capital The movements in the Company's share capital are summarized below: Date Description Number of shares Share Capital amounts in £'000s January 1, 2018 105,017,401 5,251 August 9, 2018 Vesting of RSUs 58,112 3 September 20, 2018 Vesting of RSUs 251,125 12 As at December 31, 2018 105,326,638 5,266 As at December 31, 2019 105,326,638 5,266 The total number of authorized ordinary shares, with a nominal value of £0.05 each, is 200,000,000 (share capital of £10,000,000 ). All 105,326,638 ordinary shares at December 31, 2019 are allotted, unrestricted, called up and fully paid. All issued shares rank pari passu. During 2018, the Company issued 309,237 ordinary shares upon vesting of employee restricted share units. |
Share-based payments charge
Share-based payments charge | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of share-based payment arrangements [Abstract] | |
Share-based payments charge | Share-based payments charge The Company operates various share based payment incentive schemes for its staff. In accordance with IFRS 2 "Share Based Payments," the cost of equity-settled transactions is measured by reference to their fair value at the date at which they are granted. Where equity-settled transactions were entered into with third party service providers, fair value is determined by reference to the value of the services provided. For other equity-settled transactions fair value is determined using the Black-Scholes model. The cost of equity-settled transactions is recognized over the period until the award vests. No expense is recognized for awards that do not ultimately vest. At each reporting date, the cumulative expense recognized for equity-based transactions reflects the extent to which the vesting period has expired and the number of awards that, in the opinion of the Directors at that date, will ultimately vest. The costs of equity-settled share-based payments to employees are recognized in the Statement of Comprehensive Income, together with a corresponding increase in equity during the vesting period. During the twelve months ended December 31, 2019 , the Company recognized a share-based payment expense of £ 2.44 million ( 2018 : £ 2.90 million ). The charge is included within both general and administrative costs as well as in research and development costs and represents the current year's allocation of the expense for relevant share options. The Company operates an Unapproved Share Option Scheme under which options were issued before 31 December 2016. The Company also operates a tax efficient EMI Option Scheme under which options were issued before 31 December 2016. In 2017 the Company commenced the 2017 Incentive Award Plan under which the Company grants share options and Restricted Stock Units ("RSUs") to employees and directors. Since 2017 options are issued with an exercise price at the share price the evening before the date of issue. They vest over terms of one to four years. RSUs also vest over terms of one to four years . In the year ended December 31, 2019, the Company modified the terms of all the RSUs issued prior January 1, 2019, to include a market based performance condition. The Company's share price must be maintained above £2 for thirty days for the RSUs to vest, in addition to the existing service condition. The RSUs vest after a five year term irrespective of whether the £2 market condition was met. This modification did not result in an increase in the fair value of the RSUs. The RSUs issued in the year ended December 31, 2019, also include the same market condition and five year term. In the year ended December 31, 2019 , under the 2017 Incentive Award Plan, the Company granted 5,569,050 ( 2018 : 2,090,847 ) share options and 740,496 RSUs ( 2018 : 273,390 ). The total fair values of the options and RSUs were estimated using the Black-Scholes option-pricing model for equity-settled transactions and amounted to £ 2.25 million ( 2018 : £ 2.32 million ). The cost is amortized over the vesting period of the options and RSUs on a straight-line basis.The following assumptions were used for the Black-Scholes valuation of share options and RSUs granted in 2018 and 2019 . For the options granted under the Unapproved Scheme the table indicates the ranges used in determining the fair-market values, aligning with the various dates of the underlying grants. The volatility is calculated using historical weekly averages of the Company's share price over a period that is in line with the expected life of the options and RSUs. Issued in 2018 Unapproved Restricted Stock Units Options granted 2,090,847 273,390 Risk-free interest rate 1.08% - 1.22% 1.08% - 1.22% Expected life of options 5.5 - 7 years 5.5 - 7 years Annualized volatility 69.88% -71.35% 69.88% -71.35% Dividend rate 0.00 % 0.00 % Vesting period 1 to 4 years 1 to 4 years Issued in 2019 Unapproved Restricted Stock Units Options granted 5,569,050 740,496 Risk-free interest rate 0.39% - 0.82% 0.76% - 0.82% Expected life of options 5.5 - 7 years 5.5 - 7 years Annualized volatility 67.98% - 69.71% 63.82% - 69.71% Dividend rate 0.00 % 0.00 % Vesting period 1 to 4 years 1 to 4 years The Company had the following share options movements in the year ended December 31, 2019 : Year of issue Exercise At January 1, 2019 Options granted Options forfeited Options expired At December 31, 2019 Expiry date 2012 2.50 - 7.50 99,993 — — — 99,993 June 1, 2022 2013 2 99,990 — — (19,998 ) 79,992 April 15, 2023 2013 2.00 159,999 — — — 159,999 July 29, 2023 2014 1.75 109,998 — — — 109,998 May 15, 2024 2014 1.75 49,998 — — — 49,998 May 15, 2024 * 2015 1.25 41,997 — — — 41,997 January 29, 2025 * 2015 1.25 549,999 — — — 549,999 January 29, 2025 2016 2 240,000 — — — 240,000 February 2, 2026 2016 2.00 21,996 — — — 21,996 February 2, 2026 * 2016 1.80 676,664 — — — 676,664 August 3, 2026 2016 1.89 299,997 — — — 299,997 September 13, 2026 2016 2.04 300,000 — — — 300,000 September 16, 2026 2017 1.32 - 1.525 4,093,164 — — — 4,093,164 April 26, 2027 2018 1.46 2,008,319 — (34,614 ) — 1,973,705 March 8, 2028 2019 570.00 — 3,903,050 (87,356 ) — 3,815,694 March 29, 2029 2019 595.00 — 346,000 — — 346,000 June 11, 2029 2019 457.00 — 100,000 — — 100,000 August 22, 2029 2019 0.436 — 720,000 — — 720,000 November 6, 2029 2019 445.00 — 500,000 — — 500,000 November 26, 2029 Total 8,752,114 5,569,050 (121,970 ) (19,998 ) 14,179,196 * Options granted under the EMI Scheme. The Company had the following RSU movements in the year ended December 31, 2019 : Year of issue Exercise At January 1, 2019 Units Units Units At December 31, 2019 Expiry date 2017 729,987 — — — 729,987 April 26, 2027 2018 132,486 — — — 132,486 March 8, 2028 2019 740,496 — — 740,496 March 29, 2027 Total 862,473 740,496 — — 1,602,969 Outstanding and exercisable share options by scheme as of December 31, 2019 : Plan Outstanding Exercisable Weighted average exercise price in £ for Outstanding Weighted average exercise price in £ for Exercisable Unapproved 13,965,212 5,552,293 1.12 1.55 EMI 213,984 213,984 3.06 3.06 Total 14,179,196 5,766,277 1.15 1.61 As of December 31, 2019 there were no restricted share options exercisable ( 2018 : nil ) and there is no exercise price for restricted share options. The options outstanding at December 31, 2019 had a weighted average remaining contractual life of 7.7 years ( 2018 : 8.0 years ). For 2018 and 2019 , the number of options granted and expired and the weighted average exercise price of options were as follows: Number of options Weighted average exercise price (£) At January 1, 2018 7,527,458 1.53 Options granted in 2018: Employees 1,222,089 1.46 Directors 868,758 1.46 Options forfeited in the year (799,524 ) 1.43 Options expired in the year (66,667 ) 1.75 At December 31, 2018 8,752,114 1.53 Exercisable at December 31, 2018 3,542,884 1.66 Number of options Weighted average exercise price (£) At January 1, 2019 8,752,114 1.53 Options granted in 2019: Employees 4,042,106 0.55 Directors 1,526,944 0.53 Options forfeited in the year (121,970 ) 0.82 Options expired in the year (19,998 ) 2.00 At December 31, 2019 14,179,196 1.15 Exercisable at December 31, 2019 5,766,277 1.60 The following table shows the number of RSUs issued, exercised and forfeited in 2018. The fair value of each unvested RSU at grant date was £1.46 . Number of At January 1, 2018 1,052,236 Granted: Employees 136,404 Directors 136,986 RSUs vested in the year (309,237 ) RSUs forfeited in the year (153,916 ) At December 31, 2018 862,473 The following table shows the number of RSUs issued in 2019. There were no RSUs forfeited, canceled or vested in 2019. The fair value of each unvested RSU granted in 2019 was £0.57 . Number of At January 1, 2019 862,473 Granted: Employees 474,072 Directors 266,424 RSUs vested in the year — RSUs forfeited in the year — At December 31, 2019 1,602,969 |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of share capital, reserves and other equity interest [Abstract] | |
Warrants | Derivative financial instrument On July 29, 2016, the Company issued 31,115,926 units to new and existing investors at the placing price of £1.4365 per unit. Each unit comprises one ordinary share and one warrant. The warrant holders can subscribe for 0.4 of an ordinary share at a per share exercise price of £ 1.7238 . The warrant holders can opt for a cashless exercise of their warrants, whereby the warrant holders can choose to exchange the warrants held for reduced number of warrants exercisable at nil consideration. The reduced number of warrants is calculated based on a formula considering the share price and the exercise price of the warrants. The warrants are therefore classified as a derivative financial liability, since their exercise could result in a variable number of shares to be issued. The warrants entitled the investors to subscribe for, in aggregate, a maximum of 12,401,262 shares. The warrants can be exercised until May 2, 2022. In the year ended December 31, 2019 , no warrants were forfeited ( 2018 : nil ). The table below presents the assumptions in applying the Black-Scholes model to determine the fair value of the warrants. As of December 31, 2019 As of December 31, 2018 Shares available to be issued under warrants 12,401,262 12,401,262 Exercise price £ 1.7238 £ 1.7238 Risk-free interest rate 0.540 % 0.760 % Expected term to exercise 2.34 years 3.34 years Annualized volatility 65.56 % 60.72 % Dividend rate 0.00 % 0.00 % As per the reporting date, the Company updated the underlying assumptions and calculated a fair value of these warrants amounting to £0.9 million . The variance of £(1.6) million is recorded as finance income in the Consolidated Statement of Comprehensive Income. Derivative financial instrument Derivative financial instrument 2019 2018 £'000s £'000s At January 1 2,492 1,273 Fair value adjustments recognized in profit or loss (1,597 ) 1,219 At December 31 895 2,492 For the amount recognized at December 31, 2019 , the effect when the following parameter deviates up or down is presented in the below table. Volatility (up / down 10% pts) £'000s Variable up 1,306 Base case, reported fair value 895 Variable down 535 |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade and other payables | Trade and other payables As of December 31, 2019 As of December 31, 2018 £'000s £'000s Trade payables 1,455 2,839 Other payables — 12 Accruals 6,806 4,882 Total trade and other payables 8,261 7,733 |
Assumed contingent obligation r
Assumed contingent obligation related to the business combination | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of other provisions, contingent liabilities and contingent assets [Abstract] | |
Assumed contingent obligation related to the business combination | Assumed contingent liability related to the business combination The value of the assumed contingent liability as of December 31, 2019 is £1.1 million ( 2018 : £1.0 million ). The increase in value of the assumed contingent liability during 2019 amounted to £0.1 million ( 2018 : £0.1 million ). The assumed contingent liability relates to the acquisition, in 2006, of rights to certain patents and patent applications relating to ensifentrine and related compounds under which the Company is obliged to pay royalties to Ligand (see 2.12). The assumed contingent liability is measured at the expected value of the milestone payment and royalty payments. This expected value is based on estimated future royalties payable, derived from sales forecasts, and an assessment of the probability of success using standard market probabilities for respiratory drug development. The risk-weighted value of the assumed contingent arrangement is discounted back to its net present value applying an effective interest rate of 12% . The assumed contingent liability is accounted for as a liability and its value is measured at amortized cost using the effective interest rate method, and is re-measured for changes in estimated cash flows or when the probability of success changes. Re-measurements relating to changes in estimated cash flows and probabilities of success are recognized in the IP R&D asset it relates to ("see 2.7"). This is a change in accounting policy for the year ended December 1, 2019 (see 2.17). The unwind of the discount is recognized in finance expense. The Company considers that probabilities of success will change when it moves from one stage of clinical development to another. See note 4 for a further discussion of this. 2019 2018 £'000s £'000s January 1 996 875 Impact of changes in foreign exchange rates (12 ) 15 Unwinding of discount factor 119 106 December 31 1,103 996 There is no material difference between the fair value and carrying value of the financial liability. For the amount recognized as at December 31, 2019 , of £ 1,103 thousand , the effect if underlying assumptions were to deviate up or down is presented in the following table (assuming the probability of success does not change): Discount rate (up / down 1 % pt) Revenue (up / down 10 % pts) £'000s £'000s Variable up 1,067 1,135 Base case, reported fair value 1,103 1,103 Variable down 1,141 1,071 |
Related parties transactions an
Related parties transactions and other shareholder matters | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of related party [Abstract] | |
Related parties transactions and other shareholder matters | Related parties transactions and other shareholder matters (i) Related party transactions The Directors have authority and responsibility for planning, directing and controlling the activities of the Company and they therefore comprise key management personnel as defined by IAS 24, ("Related Party Disclosures"). Directors and key management personnel remuneration is disclosed in note 8. (ii) Other shareholder matters The Company has entered into the following arrangements with parties who are significant shareholders of the Company, though they are not classed as related parties. The Company entered into relationship agreements with Vivo Ventures Fund VII, L.P., Vivo Ventures VII Affiliates Fund, L.P., Vivo Ventures Fund VI, L.P., Vivo Ventures VI Affiliates Fund, L.P. (collectively, "Vivo Capital"), Orbimed Private Investments VI L.P. ("Orbimed") and Abingworth Bioventures VI L.P. ("Abingworth"). As agreed in these relationship agreements, the above parties invested in the Company as part of the July 2016 Placement, and the Company agreed to appoint representatives designated by Vivo Capital, OrbiMed and Abingworth to the board of directors, who are Dr. Mahendra Shah, Mr. Rishi Gupta, and Dr. Andrew Sinclair. The appointment rights within the relationship agreement with Arix and Arthurian terminated on closing of the Global Offering on April 26, 2017. Dr Cunningham agreed to continue to serve on the Company's board of directors as an independent director. The respective appointment rights under the remaining relationship agreements will automatically terminate upon (i) Vivo Capital, OrbiMed or Abingworth (or any of their associates), as applicable, ceasing to beneficially hold 6.5% of the issued ordinary shares, or (ii) the ordinary shares ceasing to be admitted to AIM. Piers Morgan, Chief Financial Officer of the Company, and his spouse purchased 88,415 ordinary shares in total for £53 thousand from the market in the year ended December 31, 2019 (2018: £ nil ). Dr. Jan-Anders Karlsson, Chief Executive Officer of the Company, purchased 3,250 ordinary shares for £5 thousand from the market in the year ended December 31, 2018. There was no similar transaction as at December 31, 2019. Dr. David Ebsworth, Chairman of the Company, purchased 247,600 ordinary shares for £124 thousand from the market in the year ended December 31, 2019 (2018: £14 thousand ). At December 31, 2018, there was a receivable of £126 thousand due from one director and two key management personnel relating to tax due on RSUs that vested in the year ended December 31, 2018. This receivable was repaid, together with interest at a rate of 3.9% per annum, by March 6, 2019. There was no such balance as at December 31, 2019. In the year ended December 31, 2019 , a director provided consultancy services for £ 26 thousand ( 2018 : £ 26 thousand ). |
Events after the reporting date
Events after the reporting date Events after the reporting date | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of events after reporting period [Abstract] | |
Events after the reporting date | Events after the reporting date On February 3, 2020, the Company announced the appointment of David Zaccardelli as chief executive officer with effect from February 1, 2020, following the retirement of Jan-Anders Karlsson, PhD. The Company also announced the appointment of Mark Hahn as chief financial officer with effect from March 1, 2020, as successor to Piers Morgan. |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |
Going concern | Going concern |
Business combination | Business combination The Company applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Company. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. The excess of the cost of acquisition over the fair value of the Company's share of the identifiable net assets acquired is recorded as goodwill. Goodwill arising on acquisitions is capitalized and is subject to an impairment review, both annually and when there are indications that the carrying value may not be recoverable. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred and included in administrative expenses. |
Basis of consolidation | Basis of consolidation These consolidated financial statements include the financial statements of Verona Pharma plc and its wholly owned subsidiaries Verona Pharma, Inc. and Rhinopharma. The acquisition method of accounting was used to account for the acquisition of Rhinopharma. Inter-company transactions, balances and unrealized gains on transactions between group companies are eliminated. Verona Pharma Inc. and Rhinopharma adopt the same accounting policies as the Company. |
Foreign currency translation | Foreign currency translation Items included in the Company's consolidated financial statements are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in pounds sterling ("£"), which is the functional and presentational currency of the Company. Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date and the gains or losses on translation are included in the Consolidated Statement of Comprehensive Income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the original transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The assets and liabilities of foreign operations are translated into pounds sterling at the rate of exchange ruling at the balance sheet date. Income and expenses are translated at weighted average exchange rates for the period. The exchange differences arising on translation for consolidation are recognized in Other Comprehensive Income. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. |
Deferred taxation | Deferred taxation Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and expected to apply when the related deferred tax is realized or the deferred liability is settled. Deferred tax assets are recognized to the extent that it is probable that the future taxable profit will be available against which the temporary differences can be utilized. |
Research and development costs | Research and development costs Capitalization of expenditure on product development commences from the point at which technical feasibility and commercial viability of the product can be demonstrated and the Company is satisfied that it is probable that future economic benefits will result from the product once completed. No such costs have been capitalized to date. Expenditure on research and development activities that do not meet the above criteria is charged to the Consolidated Statement of Comprehensive Income as incurred. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at cost, net of depreciation and any provision for impairment. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Depreciation is calculated to write off the cost less their estimated residual values, on a straight-line basis over the expected useful economic lives of the assets concerned. |
Intangible assets and goodwill | Intangible assets and goodwill (a) Goodwill Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration transferred over the fair value of the identifiable net assets acquired. (b) Patents Patent costs associated with the preparation, filing, and obtaining of patents are capitalized and amortized on a straight-line basis over the estimated useful lives of ten years . (c) Computer software Amortization is calculated so as to write off the cost less estimated residual values, on a straight-line basis over the expected useful economic life of two years. (d) In-process research & development ("IP R&D") The IP R&D asset acquired through a business combination, that had not reached technical feasibility, was initially recognized at fair value. Subsequent movements in the assumed contingent liability (see 2.12) that relate to changes in estimated cashflows or probabilities of success are recognized as additions to the IP R&D asset that it relates to. There were no changes in estimated cashflows or probabilities of success in the years ended 31 December, 2019, or 2018. This is a change in accounting policy as prior to January 1, 2019, movements in the assumed contingent liability were taken to the Statement of Comprehensive Income (see note 2.17). As a result of the change in accounting policy £484 thousand was restated from Accumulated Loss to the IP R&D asset. The asset is subject to impairment testing until completion, abandonment of the project or when the research findings are commercialized through a revenue generating project. The Company determines whether intangible assets are impaired on an annual basis or when there is an indication of impairment. |
Impairment of intangible assets, goodwill and non-financial asset | Impairment of intangible assets, goodwill and non-financial assets The Company holds intangible assets relating to acquired IP R&D, patent costs and goodwill. Goodwill and intangible assets are tested annually for impairment or if there is an indication of impairment. The Company is a single cash generating unit ("CGU") so all intangibles are allocated to the Company as one CGU. As at 31 December, 2019, and 2018 the Company carried out impairment reviews with reference to its market capitalization. At points during the year ended 31 December 2019, the Company's market capitalization was less than its net assets. As a result, the Company carried out an impairment review by forecasting expected sales of ensifentrine, delivered by nebulizer for the maintenance treatment of chronic COPD, and associated costs. This cashflow forecast was then discounted to its net present value to demonstrate that the value in use of the ensifentrine was greater than the Company's net assets. The Company was required to make various estimates and assumptions as inputs for this model including, but not limited to: • market size and product acceptance by clinicians, patients and reimbursement bodies; • gross and net selling price; • costs of manufacturing, product distribution and marketing support; • costs of the Company's overhead; • size and make up of a sales force; • probabilities of success; and • discount rate. |
Employee Benefits | Employee Benefits (a) Pension The Company operates defined contribution pension schemes for its employees. Contributions payable for the year are charged to the Consolidated Statement of Comprehensive Income. The Company has no further liability once the contributions have been paid. (b) Bonus plans The Company recognizes a liability and an expense for bonus plans if contractually obligated or if there is a past practice that has created a constructive liability. |
Share-based payments | Share-based payments The Company operates a number of equity-settled, share-based compensation schemes. The fair value of share based payments is determined using the Black-Scholes model and requires several assumptions and estimates as disclosed in note 17. The fair value of share-based payments under these schemes is expensed on a straight-line basis over the share based payments' vesting periods, based on the Company's estimate of shares that will eventually vest. |
Provisions | Provisions Provisions are recognized when the Company has a present legal or constructive liability as a result of past events, it is probable that an outflow of resources will be required to settle the liability, and the amount can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the liability using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. |
Assumed contingent obligation related to the business combinations | Assumed contingent liability related to the business combination In 2006 the Company acquired Rhinopharma and assumed contingent liabilities owed to Vernalis Pharmaceuticals Limited which was subsequently acquired by Ligand Pharmaceuticals, Inc. (“Ligand”). The Company refers to the assignment and license agreement as the Ligand Agreement. Ligand assigned to the Company all of its rights to certain patents and patent applications relating to ensifentrine and related compounds (the "Ligand Patents") and an exclusive, worldwide, royalty-bearing license under certain Ligand know-how to develop, manufacture and commercialize products (the "Licensed Products") developed using Ligand Patents, Ligand know-how and the physical stock of certain compounds. The assumed contingent liability comprises a milestone payment on obtaining the first approval of any regulatory authority for the commercialization of a Licensed Product, low to mid-single digit royalties based on the future sales performance of all Licensed Products and a portion equal to a mid-twenty percent of any consideration received from any sub-licensees for the Ligand Patents and for Ligand know-how. The liability was initially recognized at fair value and subsequently measured at amortized cost. The assumed contingent liability is estimated as the expected value of the milestone payment and royalty payments. This expected value is based on estimated future royalties payable, derived from sales forecasts, and an assessment of the probability of success using standard market probabilities for respiratory drug development. The risk-weighted value of the assumed contingent arrangement is discounted back to its net present value applying an effective interest rate of 12% . Royalties payable are based on the future sales performance so the amount payable is unlimited. Sales that may be achieved are difficult to predict and subject to estimate, which is inherently uncertain. The assumed contingent liability is accounted for as a liability and its value is measured at amortized cost using the effective interest rate method, and is re-measured for changes in estimated cash flows or when the probability of success changes. Remeasurements relating to changes in estimated cash flows and probabilities of success are recognized in the IP R&D asset it relates to ("see 2.7"). This is a change in accounting policy for the year ended December 1, 2019 (see 2.17). The unwind of the discount is recognized in finance expense. Accounting for the assumed contingent liability As discussed in note 2.12, in 2006 the Company acquired Rhinopharma and assumed contingent liabilities owed to Vernalis Pharmaceuticals Limited which was subsequently acquired by Ligand Pharmaceuticals, Inc. ("Ligand"). Ligand assigned to the Company all of its rights to certain patents and patent applications relating to ensifentrine and related compounds and an exclusive, worldwide, royalty-bearing license to develop, manufacture and commercialize products. The assumed contingent liability comprises a milestone payment on obtaining the first approval of any regulatory authority and royalties based on the future sales of ensifentrine. The initial fair value of the assumed contingent liability was estimated as the expected value of the milestone payment and royalty payments. This expected value is based on estimated future royalties payable, derived from sales forecasts, an assessment of the probability of success using standard market probabilities for respiratory drug development discounted to net present value applying an effective interest rate of 12% . The assumed contingent liability is accounted for as a liability and its value is measured at amortized cost using the effective interest rate method, and is re-measured for changes in estimated cash flows or when the probability of success changes. Up to the year ended December 31, 2018, movements in the liability relating to re-measurements of cash flows or changes in the probabilities of success were taken to the Consolidated Statement of Comprehensive Income. During the year ended December 31, 2019, the Company reviewed the accounting for this item and has determined that these movements in the liability will now be recognized in the cost of the corresponding asset. The corresponding asset is the intangible IP R&D asset. The Company believes that this change in accounting policy results in the Consolidated Financial Statements providing a more relevant and reliable view of its financial position and performance because without an adjustment to the IP R&D asset on the re-measurement of the liability, the cost of the asset would not be fairly reflected on the Consolidated Statement of Financial Position. The Consolidated Statement of Financial Position more faithfully represents the financial position of the Company if the intangible asset is adjusted by any re-measurement of the liability for changes in estimated cash flows, to give a fairer reflection of the cost of the intangible asset. The Company has reviewed the International Financial Reporting Interpretations Committee ("IFRIC") discussion of accounting for variable payments made for the purchase of an intangible asset that is not part of a business combination that concluded that it was too broad for it to address within the confines of existing IFRS standards. As a result, practice in this area is mixed and many pharmaceutical companies follow a cost accumulation model. The Company also noted that adjusting the cost of the asset when a liability is remeasured for changes in estimated cash flows is consistent with the guidance in IFRIC 1 for decommissioning liabilities and IFRS 16 for lease liabilities. There were no such re-measurements of the liability in the years ended December 31, 2019, 2018 and 2017. Movements in the liability in these periods related to the unwinding of the discount and movements in exchange rates. IAS 8 requires opening balance of each affected component of equity to be adjusted for the earliest prior period presented and the other comparative amounts disclosed for each prior period presented as if the new accounting policy had always been applied. |
Financial instruments — initial recognition and subsequent measurement | Financial instruments — initial recognition and subsequent measurement The Company classifies a financial instrument, or its component parts, as a financial liability, a financial asset or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, a financial asset and an equity instrument. A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. (a) Financial assets, initial recognition and measurement and subsequent measurement The Company has no financial assets recorded at fair value through profit or loss ("FVPTL"). All assets are initially recognized initially at fair value plus transaction costs and subsequently measured at amortized cost using the effective interest method. (b) Financial liabilities, initial recognition and measurement and subsequent measurement Financial liabilities are classified as measured at amortized cost or FVTPL. The Company's warrants are classified as FVTPL and fair value gains and losses are recognized in profit or loss. Other financial liabilities are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss. The Company's financial liabilities include trade and other payables, the Company's warrants and the assumed contingent liability. (c) Derivative financial instruments Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at fair value at the end of each reporting date. The Company holds one type of derivative financial instrument, the warrants, as explained in Note 2.14. The full fair value of the derivative is classified as a non-current liability when the warrants are exercisable in more than 12 months and as a current liability when the warrants are exercisable in less than 12 months. Changes in fair value of a derivative financial liability when related to a financing arrangement are recognized in the Consolidated Statement of Comprehensive Income within Finance Income or Finance Expense. |
Warrants | arrants Warrants issued by the Company to investors as part of a share subscription are compound financial instruments where the warrant meets the definition of a financial liability. The financial liability component is initially measured at fair value in the Consolidated Statement of Financial Position. Equity is measured at the residual between the subscription price for the entire instrument and the liability component. The financial liability component is remeasured. Equity is not remeasured. |
Short Term Investments | Short Term Investments Short term investments include fixed term deposits held at banks with original maturities between three months and a year. They are classified as loans and receivables and are measured at amortized cost using the effective interest method. |
Transaction costs | Transaction costs Qualifying transaction costs might be incurred in anticipation of an issuance of equity instruments and may cross reporting periods. The entity defers these costs on the balance sheet until the equity instrument is recognized. Deferred costs are subsequently reclassified as a deduction from equity when the equity instruments are recognized, as the costs are directly attributable to the equity transaction. If the equity instruments are not subsequently issued, the transaction costs are expensed. Any costs not directly attributable to the equity transaction are expensed. Transaction costs that relate to the issue of a compound financial instrument are allocated to the liability and equity components of the instrument in proportion to the allocation of proceeds. Where the liability component is held at fair value through profit or loss, the transaction costs are expensed to the Consolidated Statement of Comprehensive Income. For liabilities held at amortized cost, transaction costs are deducted from the liability and subsequently amortized. The amount of transaction costs accounted for as a deduction from equity in the period is disclosed separately in accordance with International Accounting Standard (“IAS 1”). |
Investments in subsidiaries | Investments in subsidiaries are shown at cost less any provision for impairment. |
New standards, amendments and interpretations adopted by the Group | New standards, amendments and interpretations adopted by the Company The following standard has been adopted by the Company for the first time for the financial year beginning on or after January 1, 2019: ▪ IFRS 16 "Leases" The Company adopted IFRS 16 on January 1, 2019, and, as a consequence, changed its accounting policies. See note 2.17. |
New standards, amendments and interpretations issued but not effective for the financial year beginning January 1, 2016 and not early adopted | New standards, amendments and interpretations issued but not effective for the financial year beginning January 1, 2019 and not early adopted There are no IFRS standards or interpretations not yet effective that would be expected to have a material impact on the Group. |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |
Description of property, plant and equipment useful life | The principal annual periods used for this purpose are: Computer hardware 3 years |
Disclosure of changes in accounting estimates | The following table is a summary of the restatement: Financial statement line item As reported Adjustment for the change in accounting policy As adjusted January 1, 2017 £'000s £'000s £'000s Accumulated loss 28,728 (484 ) 28,244 Intangible assets - IP R&D 1,469 484 1,953 |
Disclosure of additional information about leasing activities for lessee | £'000s Lease commitments (including prepayments) disclosed as at December 31, 2018 600 Less: adjustments relating to prepaid lease payments (28 ) Lease commitments as at December 31, 2018 572 Discounted using the group’s incremental borrowing rate 526 Less: short-term leases recognized on a straight-line basis as expense (210 ) Lease liability recognized as at January 1, 2019 316 The Consolidated Statement of Comprehensive Income includes the following amounts relating to leases: Year ended December 31, 2019 Year ended December 31, 2018 £'000s £'000s Depreciation charge of right-of-use assets Right-of-use assets (382 ) — (382 ) — Interest expense (including finance cost) 50 — Expense relating to short-term leases (included in general and administrative expenses) 78 — |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
Summary quantitative data about entity's exposure to risk | The summary data about the Company's exposure to currency risk is as follows. Figures are the pound sterling values of balances in each currency: December 31, 2019 December 31, 2018 GBP USD EUR GBP USD EUR £'000s £'000s £'000s £'000s £'000s £'000s Cash and cash equivalents 18,517 4,399 18 11,293 8,470 21 Short term Investments 6,316 1,507 — 19,850 25,069 — Trade and other payables 3,226 4,306 728 2,872 4,329 532 |
Disclosure of effect of changes in foreign exchange rates | A reasonably possible strengthening or weakening of the Euro or U.S. dollar against pounds sterling as of December 31, 2019 and 2018 would have affected the measurement of the financial instruments denominated in a foreign currency (excluding the assumed contingent liability). The following table shows how a movement in a currency would give rise to a profit or (loss) and a corresponding entry in equity. Profit or loss and equity Strengthening Weakening December 31, 2019 £'000s £'000s EUR (5% movement) (36 ) 36 USD (5% Movement) 80 (80 ) December 31, 2018 £'000s £'000s EUR (5% movement) (26 ) 26 USD (5% Movement) 1,461 (1,461 ) |
Disclosure of cash and cash equivalents and short term investments | As of December 31, 2019 , and December 31, 2018 , cash and cash equivalents and short term investments were placed at the following banks: Cash and Cash Equivalents Year ended December 31, 2019 Credit rating Year ended December 31, 2018 Credit rating £'000 £'000 Banks Royal Bank of Scotland 1 A1 150 A1 Lloyds Bank 8,355 Aa3 15,862 Aa3 Citibank 6,529 Aa3 3,135 A1 Barclays 1,968 A1 449 A2 Wells Fargo 111 Aa1 188 Aa1 Close Brothers 5,970 Aa3 — — Total 22,934 19,784 Short Term Investments Year ended December 31, 2019 Credit Year ended December 31, 2018 Credit £'000 £'000 Banks Royal Bank of Scotland 5,616 A1 9,186 A1 Lloyds Bank — Aa3 1,567 Aa3 Standard Chartered — A1 15,450 A1 Citibank — Aa3 7,053 A1 Barclays 2,207 A1 11,663 A2 Total 7,823 44,919 |
Disclosure of financial instruments by type of interest rate | he Company's exposure to interest rate risk, which is the risk that the interest received will fluctuate as a result of changes in market interest rates on classes of financial assets and financial liabilities, was as follows: December 31, 2019 December 31, 2018 Floating interest rate Fixed interest rate Floating interest rate Fixed interest rate £'000s £'000s £'000s £'000s Financial asset Cash deposits 10,006 12,928 15,082 4,702 Short Term Investments — 7,823 — 44,919 Total 10,006 20,751 15,082 49,621 |
Disclosure of maturity analysis of undiscounted cash outflows to repurchase derecognised financial assets or amounts payable to transferee in respect of transferred assets | The following table provides an analysis of the Company's financial liabilities. The carrying value of all balances approximates to their fair value. The Company's maturity analysis for the derivative financial instrument from the issue of warrants is given in note 18. LESS THAN 1 YEAR BETWEEN 1 AND 2 YEARS BETWEEN 2 AND 5 YEARS OVER 5 YEARS £'000s £'000s £'000s £'000s At December 31, 2019 Trade payables 1,455 — — — Accruals 6,806 — — — Lease liability 476 557 — — Assumed contingent liability (1) — — — 1,807 Total 8,737 557 — 1,807 • This table includes the undiscounted amount of the assumed contingent liability. See note 20. LESS THAN 1 YEAR BETWEEN 1 AND 2 YEARS BETWEEN 2 AND 5 YEARS OVER 5 YEARS £'000s £'000s £'000s £'000s At December 31, 2018 Trade payables 2,839 — — — Other payables 12 — — — Accruals 4,882 — — — Assumed contingent liability (1) — — — 1,807 Total 7,733 — — 1,807 (1) This table includes the undiscounted amount of the assumed contingent liability. See note 20. |
Disclosure of fair value measurement of assets | Level 3 Total £'000s £'000s At December 31, 2019 Derivative financial instrument 895 895 Total 895 895 |
Disclosure of fair value measurement of liabilities | Level 3 Total £'000s £'000s At December 31, 2019 Derivative financial instrument 895 895 Total 895 895 2019 Derivative financial instrument £'000s At January 1 2,492 Fair value adjustments - non cash (1,597 ) At December 31 895 See note 18 for information relating to the derivative financial instrument. 2019 Lease liability £'000s At January 1 316 Capitalization of rental leases - non cash 1,061 Payment of lease liability - cash (426 ) At December 31 951 |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities | Movements in Level 3 items during the years ended December 31, 2019 , and 2018 are as follows: Derivative financial instrument 2019 2018 £'000s £'000s At January 1 2,492 1,273 Fair value adjustments recognized in profit and loss (1,597 ) 1,219 At December 31 895 2,492 |
Operating loss (Tables)
Operating loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Description of operating loss | Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Operating Loss is stated after charging / (crediting): Research and development costs: Employee benefits (note 8) 4,688 3,360 3,435 Amortization of patents (note 12) 102 85 111 Legal, professional consulting and listing fees 537 161 331 Other research and development expenses 28,149 15,688 19,840 Total research and development costs 33,476 19,294 23,717 General and administrative costs: Employee benefits (note 8) 3,093 3,240 2,857 Legal, professional consulting and listing fees 2,155 1,296 2,045 Amortization of computer software (note 12) 4 5 5 Depreciation of property, plant and equipment (note 13) 16 8 7 Depreciation of right-of-use assets (note 14) 382 — — Operating lease charge — land and buildings — 384 294 Loss / (gain) on variations in foreign exchange rate 345 (9 ) 36 Other general and administrative expenses 1,612 1,373 795 Total general and administrative costs 7,607 6,297 6,039 Operating loss 41,083 25,591 29,756 |
Directors' emoluments and sta_2
Directors' emoluments and staff costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Disclosure of information about employees | Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 The average number of employees (excluding directors) of the Company during the year: Research and development 13 7 7 General and administrative 9 7 5 Total 22 14 12 Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Aggregate emoluments of directors: Salaries and other short-term employee benefits 850 830 897 Social security costs 112 94 103 Incremental payment for additional services 26 26 — Other pension costs 10 10 17 Total directors' emoluments 998 960 1,017 Share-based payment charge 925 1,337 1,037 Directors' emoluments including share-based payment charge 1,923 2,297 2,054 Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Aggregate executive officers costs: Wages and salaries 1,150 857 864 Social security costs 98 83 81 Share-based payment charge 751 769 1,332 Other pension costs 21 19 17 Total executive officers costs 2,020 1,728 2,294 Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Aggregate other staff costs: Wages and salaries 2,788 1,622 1,272 Social security costs 265 150 101 Share-based payment charge 765 795 550 Other pension costs 46 34 21 Total other staff costs 3,864 2,601 1,944 |
Finance income and expense (Tab
Finance income and expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Disclosure of finance income | Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Finance income: Interest received on cash balances 754 861 345 Foreign exchange gain on translating foreign currency denominated balances — 1,922 — Fair value adjustment on derivative financial instruments (note 18) 1,597 — 6,650 Other Income — — 23 Total finance income 2,351 2,783 7,018 |
Disclosure of finance expense | Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Finance expense: Fair value adjustment on derivative financial instruments (note 18) — 1,219 — Interest on discounted lease liability 50 — — Foreign exchange loss on translating foreign currency denominated balances 305 — 2,392 Unwinding of discount factor related to the assumed contingent arrangement (note 20) 119 106 73 Total finance expense 474 1,325 2,465 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of income tax [Abstract] | |
Disclosure of major tax components | Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 £'000s £'000s £'000s Analysis of tax credit for the year Current tax: U.K. tax credit (7,250 ) (4,290 ) (5,006 ) U.S. tax charge 56 30 306 Adjustment in respect of prior periods (71 ) 28 (6 ) Total tax credit (7,265 ) (4,232 ) (4,706 ) The difference between the total tax shown above and the amount calculated by applying the standard rate of tax to the loss before tax is as follows: Factors affecting the tax credit for the year Loss on ordinary activities before taxation (39,206 ) (24,133 ) (25,203 ) Multiplied by standard rate of corporation tax of 19% (2018: 19% and 2017: 19.25%) (7,449 ) (4,585 ) (4,852 ) Effects of: Non-deductible expenses 515 540 675 Fair value adjustment on derivative financial instruments (303 ) 232 (1,280 ) Research and development incentive (3,119 ) (1,846 ) (2,116 ) Temporary differences not recognized (6 ) (3 ) (2 ) Difference in overseas tax rates 16 8 136 Tax losses carried forward not recognized 3,152 1,394 2,739 Adjustment in respect of prior periods (71 ) 28 (6 ) Total tax credit (7,265 ) (4,232 ) (4,706 ) |
Disclosure of temporary difference, unused tax losses and unused tax credits | The following tables represent deferred tax balances recognized in the Consolidated Statement of Financial Position. There were no movements in either the deferred tax asset or the deferred tax liability. As at December 31, 2019 As at December 31, 2018 £'000s £'000s Deferred tax assets 332 250 Deferred tax liabilities (332 ) (250 ) Net balances — — |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |
Disclosure of reconciliation of changes in goodwill | As of December 31, 2019 As of December 31, 2018 £'000s £'000s Goodwill at January 1 and December 31 441 441 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill | IP R&D Computer software Patents Total £'000s £'000s £'000s £'000s Cost At January 1, 2018 (Restated) 1,953 11 727 2,691 Additions — 4 251 255 Disposals — — (6 ) (6 ) At December 31, 2018 (Restated) 1,953 15 972 2,940 Accumulated amortization At January 1, 2018 — 6 232 238 Charge for year — 5 85 90 Disposals — — (6 ) (6 ) At December 31, 2018 — 11 311 322 Net book value At December 31, 2018 (Restated) 1,953 4 661 2,618 IP R&D Computer software Patents Total £'000s £'000s £'000s £'000s Cost At January 1, 2019 1,953 15 972 2,940 Additions — 3 242 245 At December 31, 2019 1,953 18 1,214 3,185 Accumulated amortization At January 1, 2019 — 11 311 322 Charge for year — 4 102 106 At December 31, 2019 — 15 413 428 Net book value At December 31, 2019 1,953 3 801 2,757 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | Computer hardware Total £'000s £'000s Cost At January 1, 2018 26 26 Additions 13 13 At December 31, 2018 39 39 Accumulated depreciation At January 1, 2018 10 10 Charge for the year 8 8 At December 31, 2018 18 18 Net book value At December 31, 2018 21 21 Computer hardware Total £'000s £'000s Cost At January 1, 2019 39 39 Additions 38 38 At December 31, 2019 77 77 Accumulated depreciation At January 1, 2019 18 18 Charge for the year 16 16 At December 31, 2019 34 34 Net book value At December 31, 2019 43 43 |
Right-of-use assets - propert_2
Right-of-use assets - property leases Right-of-use assets - property leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of leases [Abstract] | |
Disclosure of quantitative information about right-of-use assets | The Consolidated Statement of Financial Position shows the following amounts relating to leases: Year ended December 31, 2019 As of January 1, 2019* £'000s £'000s Right-of-use assets Right-of-use assets 971 326 971 326 Lease liabilities Current (460 ) (316 ) Non Current (491 ) — (951 ) (316 ) |
Disclosure of additional information about leasing activities for lessee | £'000s Lease commitments (including prepayments) disclosed as at December 31, 2018 600 Less: adjustments relating to prepaid lease payments (28 ) Lease commitments as at December 31, 2018 572 Discounted using the group’s incremental borrowing rate 526 Less: short-term leases recognized on a straight-line basis as expense (210 ) Lease liability recognized as at January 1, 2019 316 The Consolidated Statement of Comprehensive Income includes the following amounts relating to leases: Year ended December 31, 2019 Year ended December 31, 2018 £'000s £'000s Depreciation charge of right-of-use assets Right-of-use assets (382 ) — (382 ) — Interest expense (including finance cost) 50 — Expense relating to short-term leases (included in general and administrative expenses) 78 — |
Prepayments and other receiva_2
Prepayments and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Description of prepayments and other receivables | As of December 31, 2019 As of December 31, 2018 £'000s £'000s Prepayments 1,309 1,362 Other receivables 1,461 1,101 Total prepayments and other receivables 2,770 2,463 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of share capital, reserves and other equity interest [Abstract] | |
Movements in the Company's share capital | The movements in the Company's share capital are summarized below: Date Description Number of shares Share Capital amounts in £'000s January 1, 2018 105,017,401 5,251 August 9, 2018 Vesting of RSUs 58,112 3 September 20, 2018 Vesting of RSUs 251,125 12 As at December 31, 2018 105,326,638 5,266 As at December 31, 2019 105,326,638 5,266 |
Share-based payments charge (Ta
Share-based payments charge (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of share-based payment arrangements [Abstract] | |
Disclosure of indirect measurement of fair value of goods or services received, share options granted during period | The following assumptions were used for the Black-Scholes valuation of share options and RSUs granted in 2018 and 2019 . For the options granted under the Unapproved Scheme the table indicates the ranges used in determining the fair-market values, aligning with the various dates of the underlying grants. The volatility is calculated using historical weekly averages of the Company's share price over a period that is in line with the expected life of the options and RSUs. Issued in 2018 Unapproved Restricted Stock Units Options granted 2,090,847 273,390 Risk-free interest rate 1.08% - 1.22% 1.08% - 1.22% Expected life of options 5.5 - 7 years 5.5 - 7 years Annualized volatility 69.88% -71.35% 69.88% -71.35% Dividend rate 0.00 % 0.00 % Vesting period 1 to 4 years 1 to 4 years Issued in 2019 Unapproved Restricted Stock Units Options granted 5,569,050 740,496 Risk-free interest rate 0.39% - 0.82% 0.76% - 0.82% Expected life of options 5.5 - 7 years 5.5 - 7 years Annualized volatility 67.98% - 69.71% 63.82% - 69.71% Dividend rate 0.00 % 0.00 % Vesting period 1 to 4 years 1 to 4 years |
Disclosure of number and weighted average exercise prices of share options | Outstanding and exercisable share options by scheme as of December 31, 2019 : Plan Outstanding Exercisable Weighted average exercise price in £ for Outstanding Weighted average exercise price in £ for Exercisable Unapproved 13,965,212 5,552,293 1.12 1.55 EMI 213,984 213,984 3.06 3.06 Total 14,179,196 5,766,277 1.15 1.61 As of December 31, 2019 there were no restricted share options exercisable ( 2018 : nil ) and there is no exercise price for restricted share options. The options outstanding at December 31, 2019 had a weighted average remaining contractual life of 7.7 years ( 2018 : 8.0 years ). For 2018 and 2019 , the number of options granted and expired and the weighted average exercise price of options were as follows: Number of options Weighted average exercise price (£) At January 1, 2018 7,527,458 1.53 Options granted in 2018: Employees 1,222,089 1.46 Directors 868,758 1.46 Options forfeited in the year (799,524 ) 1.43 Options expired in the year (66,667 ) 1.75 At December 31, 2018 8,752,114 1.53 Exercisable at December 31, 2018 3,542,884 1.66 Number of options Weighted average exercise price (£) At January 1, 2019 8,752,114 1.53 Options granted in 2019: Employees 4,042,106 0.55 Directors 1,526,944 0.53 Options forfeited in the year (121,970 ) 0.82 Options expired in the year (19,998 ) 2.00 At December 31, 2019 14,179,196 1.15 Exercisable at December 31, 2019 5,766,277 1.60 The Company had the following share options movements in the year ended December 31, 2019 : Year of issue Exercise At January 1, 2019 Options granted Options forfeited Options expired At December 31, 2019 Expiry date 2012 2.50 - 7.50 99,993 — — — 99,993 June 1, 2022 2013 2 99,990 — — (19,998 ) 79,992 April 15, 2023 2013 2.00 159,999 — — — 159,999 July 29, 2023 2014 1.75 109,998 — — — 109,998 May 15, 2024 2014 1.75 49,998 — — — 49,998 May 15, 2024 * 2015 1.25 41,997 — — — 41,997 January 29, 2025 * 2015 1.25 549,999 — — — 549,999 January 29, 2025 2016 2 240,000 — — — 240,000 February 2, 2026 2016 2.00 21,996 — — — 21,996 February 2, 2026 * 2016 1.80 676,664 — — — 676,664 August 3, 2026 2016 1.89 299,997 — — — 299,997 September 13, 2026 2016 2.04 300,000 — — — 300,000 September 16, 2026 2017 1.32 - 1.525 4,093,164 — — — 4,093,164 April 26, 2027 2018 1.46 2,008,319 — (34,614 ) — 1,973,705 March 8, 2028 2019 570.00 — 3,903,050 (87,356 ) — 3,815,694 March 29, 2029 2019 595.00 — 346,000 — — 346,000 June 11, 2029 2019 457.00 — 100,000 — — 100,000 August 22, 2029 2019 0.436 — 720,000 — — 720,000 November 6, 2029 2019 445.00 — 500,000 — — 500,000 November 26, 2029 Total 8,752,114 5,569,050 (121,970 ) (19,998 ) 14,179,196 * Options granted under the EMI Scheme. |
Disclosure of number and weighted average exercise prices of other equity instruments | The Company had the following RSU movements in the year ended December 31, 2019 : Year of issue Exercise At January 1, 2019 Units Units Units At December 31, 2019 Expiry date 2017 729,987 — — — 729,987 April 26, 2027 2018 132,486 — — — 132,486 March 8, 2028 2019 740,496 — — 740,496 March 29, 2027 Total 862,473 740,496 — — 1,602,969 The following table shows the number of RSUs issued, exercised and forfeited in 2018. The fair value of each unvested RSU at grant date was £1.46 . Number of At January 1, 2018 1,052,236 Granted: Employees 136,404 Directors 136,986 RSUs vested in the year (309,237 ) RSUs forfeited in the year (153,916 ) At December 31, 2018 862,473 The following table shows the number of RSUs issued in 2019. There were no RSUs forfeited, canceled or vested in 2019. The fair value of each unvested RSU granted in 2019 was £0.57 . Number of At January 1, 2019 862,473 Granted: Employees 474,072 Directors 266,424 RSUs vested in the year — RSUs forfeited in the year — At December 31, 2019 1,602,969 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of share capital, reserves and other equity interest [Abstract] | |
Disclosure of indirect measurement of fair value of goods or services received, other equity instruments granted during period | The table below presents the assumptions in applying the Black-Scholes model to determine the fair value of the warrants. As of December 31, 2019 As of December 31, 2018 Shares available to be issued under warrants 12,401,262 12,401,262 Exercise price £ 1.7238 £ 1.7238 Risk-free interest rate 0.540 % 0.760 % Expected term to exercise 2.34 years 3.34 years Annualized volatility 65.56 % 60.72 % Dividend rate 0.00 % 0.00 % Derivative financial instrument Derivative financial instrument 2019 2018 £'000s £'000s At January 1 2,492 1,273 Fair value adjustments recognized in profit or loss (1,597 ) 1,219 At December 31 895 2,492 For the amount recognized at December 31, 2019 , the effect when the following parameter deviates up or down is presented in the below table. Volatility (up / down 10% pts) £'000s Variable up 1,306 Base case, reported fair value 895 Variable down 535 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of trade and other payables | As of December 31, 2019 As of December 31, 2018 £'000s £'000s Trade payables 1,455 2,839 Other payables — 12 Accruals 6,806 4,882 Total trade and other payables 8,261 7,733 |
Assumed contingent obligation_2
Assumed contingent obligation related to the business combination (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of other provisions, contingent liabilities and contingent assets [Abstract] | |
Disclosure of contingent liabilities in business combination | Re-measurements relating to changes in estimated cash flows and pr |
General information (Details)
General information (Details) | 12 Months Ended |
Dec. 31, 2019subsidiary | |
Disclosure of notes and other explanatory information [Abstract] | |
Number of subsidiaries | 2 |
Accounting policies - Going con
Accounting policies - Going concern (Details) - GBP (£) £ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | ||||
Loss for the year | £ (31,941) | £ (19,901) | £ (20,497) | |
Accumulated loss | £ (100,627) | £ (68,633) | £ (28,244) |
Accounting policies - Descripti
Accounting policies - Description of property, plant and equipment useful life (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computer hardware | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment life | 3 years |
Accounting policies - Intangibl
Accounting policies - Intangible assets and goodwill (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Patents | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 10 years |
Computer software | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 2 years |
Accounting policies - Assumed c
Accounting policies - Assumed contingent obligation related to the business combinations (Details) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2006 | |
Disclosure of detailed information about business combination [line items] | ||
Payments of lease liabilities, classified as financing activities | £ 426 | |
Rhinopharma Limited | ||
Disclosure of detailed information about business combination [line items] | ||
Effective interest rate | 12.00% |
Accounting policies - Change in
Accounting policies - Change in accounting policy narrative (Details) - GBP (£) £ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 |
Disclosure of contingent liabilities in business combination [line items] | ||||||
Accumulated loss | £ 100,627 | £ 68,633 | £ 28,244 | |||
Right-of-use assets | £ 326 | 971 | ||||
Lease liabilities | 316 | £ 951 | ||||
Adjustments relating to prepaid lease payments | 28 | |||||
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16 | 8.00% | |||||
Payments of lease liabilities, classified as financing activities | £ 426 | |||||
General and administrative expense | (7,607) | (6,297) | £ (6,039) | |||
Finance expense | 474 | £ 1,325 | £ 2,465 | |||
Additions to right-of-use assets | £ 1,047 | |||||
Increase (decrease) due to changes in accounting policy [member] | ||||||
Disclosure of contingent liabilities in business combination [line items] | ||||||
Accumulated loss | 20 | £ (484) | ||||
Lease liabilities | 316 | |||||
General and administrative expense | 123 | |||||
Finance expense | £ 50 | |||||
Rhinopharma Limited | ||||||
Disclosure of contingent liabilities in business combination [line items] | ||||||
Measurement period adjustments recognised for particular assets, liabilities, non-controlling interests or items of consideration | £ 484 |
Accounting policies - Accountin
Accounting policies - Accounting restatement (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2017 |
Disclosure of changes in accounting estimates [line items] | ||||
Accumulated loss | £ 100,627 | £ 68,633 | £ 28,244 | |
Intangible assets other than goodwill | 2,757 | 2,618 | ||
IP R&D | ||||
Disclosure of changes in accounting estimates [line items] | ||||
Intangible assets other than goodwill | £ 1,953 | £ 1,953 | 1,953 | |
Previously stated [member] | ||||
Disclosure of changes in accounting estimates [line items] | ||||
Accumulated loss | 28,728 | |||
Previously stated [member] | IP R&D | ||||
Disclosure of changes in accounting estimates [line items] | ||||
Intangible assets other than goodwill | 1,469 | |||
Increase (decrease) due to changes in accounting policy [member] | ||||
Disclosure of changes in accounting estimates [line items] | ||||
Accumulated loss | £ 20 | (484) | ||
Increase (decrease) due to changes in accounting policy [member] | IP R&D | ||||
Disclosure of changes in accounting estimates [line items] | ||||
Intangible assets other than goodwill | £ 484 |
Accounting policies - Adjustmen
Accounting policies - Adjustment for lease pronouncement (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |||
Lease commitments (including prepayments) disclosed as at December 31, 2018 | £ 600 | ||
Less: adjustments relating to prepaid lease payments | (28) | ||
Discounted using the group’s incremental borrowing rate | £ 572 | ||
Discounted using the group’s incremental borrowing rate | £ 526 | ||
Less: short-term leases recognized on a straight-line basis as expense | (210) | ||
Lease liability recognized as at January 1, 2019 | £ 951 | £ 316 |
Accounting policies - New stand
Accounting policies - New standards, amendments and interpretations issued but not effective (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | ||
Lease liabilities | £ 951 | £ 316 |
Right-of-use assets | £ 971 | £ 326 |
Financial Instruments - Summary
Financial Instruments - Summary quantitative data about entity's exposure to risk (Details) - Currency risk - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
GBP | Cash and cash equivalents | ||
Disclosure of credit risk exposure [line items] | ||
Cash deposits | £ 18,517 | £ 11,293 |
GBP | Short Term Investments | ||
Disclosure of credit risk exposure [line items] | ||
Cash deposits | 6,316 | 19,850 |
GBP | Trade and other payables | ||
Disclosure of credit risk exposure [line items] | ||
Cash deposits | 3,226 | 2,872 |
USD | Cash and cash equivalents | ||
Disclosure of credit risk exposure [line items] | ||
Cash deposits | 4,399 | 8,470 |
USD | Short Term Investments | ||
Disclosure of credit risk exposure [line items] | ||
Cash deposits | 1,507 | 25,069 |
USD | Trade and other payables | ||
Disclosure of credit risk exposure [line items] | ||
Cash deposits | 4,306 | 4,329 |
EUR | Cash and cash equivalents | ||
Disclosure of credit risk exposure [line items] | ||
Cash deposits | 18 | 21 |
EUR | Short Term Investments | ||
Disclosure of credit risk exposure [line items] | ||
Cash deposits | 0 | 0 |
EUR | Trade and other payables | ||
Disclosure of credit risk exposure [line items] | ||
Cash deposits | £ 728 | £ 532 |
Financial Instruments - Disclos
Financial Instruments - Disclosure of effect of changes in foreign exchange rates [text block] (Details) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
EUR | Strengthening | ||
Disclosure of credit risk exposure [line items] | ||
Profit or loss and equity | £ (36) | £ (26) |
EUR | Weakening | ||
Disclosure of credit risk exposure [line items] | ||
Profit or loss and equity | 36 | 26 |
USD | Strengthening | ||
Disclosure of credit risk exposure [line items] | ||
Profit or loss and equity | 80 | 1,461 |
USD | Weakening | ||
Disclosure of credit risk exposure [line items] | ||
Profit or loss and equity | £ (80) | £ (1,461) |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - GBP (£) £ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of fair value measurement of assets [line items] | ||||
Cash deposits | £ 22,934 | £ 19,784 | £ 31,443 | £ 39,785 |
Short-term deposits, not classified as cash equivalents | £ 7,823 | 44,919 | ||
Increase in interest rates | 0.25% | |||
Bottom of range | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Trade payable term | 30 days | |||
Rates of interest | 0.00% | |||
Top of range | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Trade payable term | 45 days | |||
Rates of interest | 2.87% | |||
Derivative financial instrument | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Gains (losses) recognised in profit or loss including exchange differences, fair value measurement, liabilities | £ 1,597 | |||
Derivative financial instrument | Level 3 | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Gains (losses) recognised in profit or loss including exchange differences, fair value measurement, liabilities | £ (1,597) | £ 1,219 |
Financial Instruments - Discl_2
Financial Instruments - Disclosure Of Detailed Information About Cash And Cash Equivalents Placement Explanatory (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | £ 22,934 | £ 19,784 | £ 31,443 | £ 39,785 |
Short term investments | 7,823 | 44,919 | ||
Royal Bank of Scotland | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 1 | 150 | ||
Short term investments | 5,616 | 9,186 | ||
Lloyds Bank | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 8,355 | 15,862 | ||
Short term investments | 0 | 1,567 | ||
Standard Chartered | ||||
Disclosure of financial assets [line items] | ||||
Short term investments | 0 | 15,450 | ||
Citibank | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 6,529 | 3,135 | ||
Short term investments | 0 | 7,053 | ||
Barclays | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 1,968 | 449 | ||
Short term investments | 2,207 | 11,663 | ||
Wells Fargo | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 111 | 188 | ||
Close Brothers | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | £ 5,970 | £ 0 |
Financial Instruments - Discl_3
Financial Instruments - Disclosure of financial instruments by type of interest rate (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial instruments by type of interest rate [line items] | ||
Short-term deposits, not classified as cash equivalents | £ 7,823 | £ 44,919 |
Interest rate risk | Floating interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Cash deposits | 10,006 | 15,082 |
Interest rate risk | Fixed Interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Cash deposits | 20,751 | 49,621 |
Cash deposits | Interest rate risk | Floating interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Cash deposits | 10,006 | 15,082 |
Cash deposits | Interest rate risk | Fixed Interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Cash deposits | 12,928 | 4,702 |
Short Term Investments | Interest rate risk | Floating interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Cash deposits | 0 | 0 |
Short Term Investments | Interest rate risk | Fixed Interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Cash deposits | £ 7,823 | £ 44,919 |
Financial Instruments - Discl_4
Financial Instruments - Disclosure of maturity analysis of undiscounted cash outflows to repurchase derecognised financial assets or amounts payable to transferee in respect of transferred assets (Details) - Liquidity risk - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
LESS THAN 1 YEAR | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | £ 8,737 | £ 7,733 |
BETWEEN 1 AND 2 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 557 | 0 |
BETWEEN 2 AND 5 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | 0 |
OVER 5 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 1,807 | 1,807 |
Trade payables | LESS THAN 1 YEAR | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 1,455 | 2,839 |
Trade payables | BETWEEN 1 AND 2 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | 0 |
Trade payables | BETWEEN 2 AND 5 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | 0 |
Trade payables | OVER 5 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | 0 |
Other payables | LESS THAN 1 YEAR | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 12 | |
Other payables | BETWEEN 1 AND 2 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | |
Other payables | BETWEEN 2 AND 5 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | |
Other payables | OVER 5 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | |
Accruals | LESS THAN 1 YEAR | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 6,806 | 4,882 |
Accruals | BETWEEN 1 AND 2 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | 0 |
Accruals | BETWEEN 2 AND 5 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | 0 |
Accruals | OVER 5 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | 0 |
Lease liability | LESS THAN 1 YEAR | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 476 | |
Lease liability | BETWEEN 1 AND 2 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 557 | |
Lease liability | BETWEEN 2 AND 5 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | |
Lease liability | OVER 5 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | |
Assumed contingent liability(1) | LESS THAN 1 YEAR | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | 0 |
Assumed contingent liability(1) | BETWEEN 1 AND 2 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | 0 |
Assumed contingent liability(1) | BETWEEN 2 AND 5 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | 0 | 0 |
Assumed contingent liability(1) | OVER 5 YEARS | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables, undiscounted cash flows | £ 1,807 | £ 1,807 |
Financial Instruments - Discl_5
Financial Instruments - Disclosure of fair value measurement of assets and liabilities (Details) - Derivative financial instrument - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement of assets [line items] | |||
Financial assets | £ 895 | £ 2,492 | |
Level 3 | |||
Disclosure of fair value measurement of assets [line items] | |||
Financial assets | £ 895 | £ 2,492 | £ 1,273 |
Financial Instruments - Discl_6
Financial Instruments - Disclosure of significant unobservable inputs used in fair value measurement of assets and liabilities (Details) - Derivative financial instrument - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in fair value measurement, liabilities [abstract] | ||
Beginning balance | £ 2,492 | |
Fair value adjustments recognized in profit and loss | 1,597 | |
Ending balance | 895 | £ 2,492 |
Level 3 | ||
Reconciliation of changes in fair value measurement, liabilities [abstract] | ||
Beginning balance | 2,492 | 1,273 |
Fair value adjustments recognized in profit and loss | (1,597) | 1,219 |
Ending balance | £ 895 | £ 2,492 |
Financial Instruments - Change
Financial Instruments - Change in liabilities arising from financing activities (Details) £ in Thousands | 12 Months Ended |
Dec. 31, 2019GBP (£) | |
Changes in fair value measurement, liabilities [abstract] | |
Payment of lease liability - cash | £ (426) |
Derivative financial instrument | |
Changes in fair value measurement, liabilities [abstract] | |
Beginning balance | 2,492 |
Fair value adjustments - non cash | (1,597) |
Ending balance | 895 |
Lease liability | |
Changes in fair value measurement, liabilities [abstract] | |
Beginning balance | 316 |
Capitalization of rental leases - non cash | 1,061 |
Payment of lease liability - cash | (426) |
Ending balance | £ 951 |
Critical accounting estimates_2
Critical accounting estimates and judgments (Details) £ / shares in Units, £ in Thousands | 6 Months Ended | |||||
Jun. 30, 2020GBP (£) | Dec. 31, 2019GBP (£)shares | Dec. 31, 2018GBP (£)shares | Dec. 31, 2017GBP (£) | Jul. 31, 2016shareswarrant | Jul. 29, 2016shareswarrant£ / shares | |
Disclosure of detailed information about business combination [line items] | ||||||
Assumed contingent liability | £ | £ 1,103 | £ 996 | £ 875 | |||
Number of units issued (in shares) | shares | 31,115,926 | 31,115,926 | ||||
Placing price (in pounds per unit) | £ / shares | £ 1.4365 | |||||
Number of ordinary shares (in shares) | shares | 1 | 1 | ||||
Number warrants (in warrants) | warrant | 1 | 1 | ||||
Warrants | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Number of shares subscribed from warrant maximum (in shares) | shares | 12,401,262 | 12,401,262 | ||||
Bottom of range | Forecast | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Increase (decrease) in contingent liabilities recognised in business combination | £ | £ 15,000 | |||||
Top of range | Forecast | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Increase (decrease) in contingent liabilities recognised in business combination | £ | £ 30,000 |
Earnings per share (Details)
Earnings per share (Details) - £ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of earnings per share [Abstract] | |||
Loss per ordinary share — basic and diluted (pence per share) | £ (30.3) | £ (18.9) | £ (23.4) |
Basic earnings (loss) per share (per share) | £ (0.303) | £ (0.189) | £ (0.234) |
Weighted average number of ordinary shares (in shares) | 105,326,638 | 105,110,504 | 87,748,031 |
Segmental reporting (Details)
Segmental reporting (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Disclosure of entity's operating segments [Abstract] | |
Number of operating and reportable segments | 1 |
Operating loss - Description Of
Operating loss - Description Of Operating Loss (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Research and development costs: | |||
Total research and development costs | £ 33,476 | £ 19,294 | £ 23,717 |
General and administrative costs: | |||
Depreciation of right-of-use assets (note 14) | 382 | 0 | |
Loss / (gain) on variations in foreign exchange rate | (8) | 0 | 0 |
Total general and administrative costs | 7,607 | 6,297 | 6,039 |
Operating loss | 41,083 | 25,591 | 29,756 |
Research and development costs | |||
Research and development costs: | |||
Employee benefits (note 8) | 4,688 | 3,360 | 3,435 |
Legal, professional consulting and listing fees | 537 | 161 | 331 |
Other research and development expenses | 28,149 | 15,688 | 19,840 |
Total research and development costs | 33,476 | 19,294 | 23,717 |
General and administrative costs: | |||
Employee benefits (note 8) | 4,688 | 3,360 | 3,435 |
Legal, professional consulting and listing fees | 537 | 161 | 331 |
Research and development costs | Patents | |||
Research and development costs: | |||
Amortization | 102 | 85 | 111 |
General and administrative costs: | |||
Amortization | 102 | 85 | 111 |
General and administrative costs | |||
Research and development costs: | |||
Employee benefits (note 8) | 3,093 | 3,240 | 2,857 |
Legal, professional consulting and listing fees | 2,155 | 1,296 | 2,045 |
General and administrative costs: | |||
Employee benefits (note 8) | 3,093 | 3,240 | 2,857 |
Legal, professional consulting and listing fees | 2,155 | 1,296 | 2,045 |
Depreciation of property, plant and equipment (note 13) | 16 | 8 | 7 |
Depreciation of right-of-use assets (note 14) | 382 | ||
Operating lease charge — land and buildings | 384 | 294 | |
Loss / (gain) on variations in foreign exchange rate | 345 | (9) | 36 |
Other general and administrative expenses | 1,612 | 1,373 | 795 |
Total general and administrative costs | 7,607 | 6,297 | 6,039 |
Operating loss | 41,083 | 25,591 | 29,756 |
General and administrative costs | Computer software | |||
Research and development costs: | |||
Amortization | 4 | 5 | 5 |
General and administrative costs: | |||
Amortization | £ 4 | £ 5 | £ 5 |
Directors' emoluments and sta_3
Directors' emoluments and staff costs (Details) | 12 Months Ended | ||
Dec. 31, 2019GBP (£)employee | Dec. 31, 2018GBP (£)employee | Dec. 31, 2017GBP (£)employee | |
Disclosure of transactions between related parties [line items] | |||
The average number of employees (excluding directors) of the Company during the year: | employee | 22 | 14 | 12 |
Aggregate emoluments of directors: | |||
Share-based payment charge | £ 2,440,000 | £ 2,900,000 | |
Aggregate other staff costs: | |||
Share-based payment charge | 2,440,000 | 2,900,000 | |
Post-employment benefit expense, defined contribution plans | 77,000 | 63,000 | £ 55,000 |
Prepaid or accrued contributions | 0 | 0 | 0 |
Directors | |||
Aggregate emoluments of directors: | |||
Salaries and other short-term employee benefits | 850,000 | 830,000 | 897,000 |
Social security costs | 112,000 | 94,000 | 103,000 |
Incremental payment for additional services | 26,000 | 26,000 | 0 |
Other pension costs | 10,000 | 10,000 | 17,000 |
Total directors' emoluments | 998,000 | 960,000 | 1,017,000 |
Share-based payment charge | 925,000 | 1,337,000 | 1,037,000 |
Directors' emoluments including share-based payment charge | 1,923,000 | 2,297,000 | 2,054,000 |
Aggregate other staff costs: | |||
Social security costs | 112,000 | 94,000 | 103,000 |
Share-based payment charge | 925,000 | 1,337,000 | 1,037,000 |
Other pension costs | 10,000 | 10,000 | 17,000 |
Executive Officers | |||
Aggregate emoluments of directors: | |||
Social security costs | 98,000 | 83,000 | 81,000 |
Other pension costs | 21,000 | 19,000 | 17,000 |
Share-based payment charge | 751,000 | 769,000 | 1,332,000 |
Aggregate other staff costs: | |||
Wages and salaries | 1,150,000 | 857,000 | 864,000 |
Social security costs | 98,000 | 83,000 | 81,000 |
Share-based payment charge | 751,000 | 769,000 | 1,332,000 |
Other pension costs | 21,000 | 19,000 | 17,000 |
Total other staff costs | 2,020,000 | 1,728,000 | 2,294,000 |
Other Staff | |||
Aggregate emoluments of directors: | |||
Social security costs | 265,000 | 150,000 | 101,000 |
Other pension costs | 46,000 | 34,000 | 21,000 |
Share-based payment charge | 765,000 | 795,000 | 550,000 |
Aggregate other staff costs: | |||
Wages and salaries | 2,788,000 | 1,622,000 | 1,272,000 |
Social security costs | 265,000 | 150,000 | 101,000 |
Share-based payment charge | 765,000 | 795,000 | 550,000 |
Other pension costs | 46,000 | 34,000 | 21,000 |
Total other staff costs | £ 3,864,000 | £ 2,601,000 | £ 1,944,000 |
Research and development | |||
Disclosure of transactions between related parties [line items] | |||
The average number of employees (excluding directors) of the Company during the year: | employee | 13 | 7 | 7 |
General and administrative | |||
Disclosure of transactions between related parties [line items] | |||
The average number of employees (excluding directors) of the Company during the year: | employee | 9 | 7 | 5 |
Finance income and expense (Det
Finance income and expense (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance income: | |||
Interest received on cash balances | £ 754 | £ 861 | £ 345 |
Foreign exchange gain on translating foreign currency denominated balances | 0 | 1,922 | 0 |
Fair value adjustment on derivative financial instruments (note 18) | 1,597 | 0 | 6,650 |
Other Income | 0 | 0 | 23 |
Total finance income | 2,351 | 2,783 | 7,018 |
Finance expense: | |||
Fair value adjustment on derivative financial instruments (note 18) | 0 | 1,219 | 0 |
Interest on discounted lease liability | 50 | 0 | 0 |
Foreign exchange loss on translating foreign currency denominated balances | 305 | 0 | 2,392 |
Unwinding of discount factor related to the assumed contingent arrangement (note 20) | 119 | 106 | 73 |
Total finance expense | £ 474 | £ 1,325 | £ 2,465 |
Taxation - Disclosure of major
Taxation - Disclosure of major components of tax expense (income) (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax: | |||
Adjustment in respect of prior periods | £ (71) | £ 28 | £ (6) |
Total tax credit | (7,265) | (4,232) | (4,706) |
Factors affecting the tax credit for the year | |||
Loss on ordinary activities before taxation | (39,206) | (24,133) | (25,203) |
Multiplied by standard rate of corporation tax of 19% (2018: 19% and 2017: 19.25%) | £ (7,449) | £ (4,585) | £ (4,852) |
Standard rate of corporation tax | 19.00% | 19.00% | 19.25% |
Effects of: | |||
Non-deductible expenses | £ 515 | £ 540 | £ 675 |
Fair value adjustment on derivative financial instruments | (303) | 232 | (1,280) |
Research and development incentive | (3,119) | (1,846) | (2,116) |
Temporary differences not recognized | (6) | (3) | (2) |
Difference in overseas tax rates | 16 | 8 | 136 |
Tax losses carried forward not recognized | 3,152 | 1,394 | 2,739 |
Adjustment in respect of prior periods | (71) | 28 | (6) |
Total tax credit | (7,265) | (4,232) | (4,706) |
UK | |||
Current tax: | |||
U.K. tax credit | (7,250) | (4,290) | (5,006) |
US | |||
Current tax: | |||
U.K. tax credit | £ 56 | £ 30 | £ 306 |
Factors affecting the tax credit for the year | |||
Standard rate of corporation tax | 27.60% | 27.60% | 35.00% |
Taxation - Narrative (Details)
Taxation - Narrative (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Standard rate of corporation tax | 19.00% | 19.00% | 19.25% |
Unrecognized deferred tax asset percent | 17.00% | 17.00% | |
Unrecognized deferred tax asset | £ 9,270 | £ 6,650 | |
U.S. federal tax | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Standard rate of corporation tax | 27.60% | 27.60% | 35.00% |
Taxation - Disclosure of tempor
Taxation - Disclosure of temporary difference, unused tax losses and unused tax credits (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of income tax [Abstract] | ||
Deferred tax assets | £ 332 | £ 250 |
Deferred tax liabilities | (332) | (250) |
Net balances | £ 0 | £ 0 |
Goodwill (Details)
Goodwill (Details) - GBP (£) | 12 Months Ended | ||||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Disclosure of detailed information about intangible assets [abstract] | |||||
Goodwill at January 1 and December 31 | £ 441,000 | £ 441,000 | |||
Market capitalization | 65,300,000 | 92,200,000 | |||
Equity attributable to owners of parent | 33,865,000 | £ 63,398,000 | £ 63,418,000 | £ 80,365,000 | £ 34,953,000 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | £ 0 |
Intangible assets - Disclosure
Intangible assets - Disclosure of reconciliation of changes in intangible assets and goodwill (Details) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | £ 2,618 | |
Ending balance | 2,757 | £ 2,618 |
Cost | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 2,940 | 2,691 |
Additions | 245 | 255 |
Disposals | (6) | |
Ending balance | 3,185 | 2,940 |
Accumulated depreciation | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 322 | 238 |
Disposals | (6) | |
Charge for year | 106 | 90 |
Ending balance | 428 | 322 |
IP R&D | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 1,953 | |
Ending balance | 1,953 | 1,953 |
IP R&D | Cost | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 1,953 | 1,953 |
Additions | 0 | 0 |
Disposals | 0 | |
Ending balance | 1,953 | 1,953 |
Computer software | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 4 | |
Ending balance | 3 | 4 |
Computer software | Cost | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 15 | 11 |
Additions | 3 | 4 |
Disposals | 0 | |
Ending balance | 18 | 15 |
Computer software | Accumulated depreciation | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 11 | 6 |
Disposals | 0 | |
Charge for year | 4 | 5 |
Ending balance | 15 | 11 |
Patents | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 661 | |
Ending balance | 801 | 661 |
Patents | Cost | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 972 | 727 |
Additions | 242 | 251 |
Disposals | (6) | |
Ending balance | 1,214 | 972 |
Patents | Accumulated depreciation | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 311 | 232 |
Disposals | (6) | |
Charge for year | 102 | 85 |
Ending balance | £ 413 | £ 311 |
Intangible assets - Narrative (
Intangible assets - Narrative (Details) - GBP (£) | 12 Months Ended | ||||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Disclosure of detailed information about intangible assets [line items] | |||||
Market capitalization | £ 65,300,000 | £ 92,200,000 | |||
Net assets | 33,865,000 | £ 63,398,000 | £ 63,418,000 | £ 80,365,000 | £ 34,953,000 |
Impairment | £ 0 | ||||
Patents | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Amortization period | 10 years |
Property, plant and equipment_2
Property, plant and equipment (Details) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cost | ||
Property, plant and equipment beginning balance | £ 21 | |
Property, plant and equipment ending balance | 43 | £ 21 |
Accumulated depreciation | ||
Property, plant and equipment beginning balance | 21 | |
Property, plant and equipment ending balance | 43 | 21 |
Net book value | ||
Property plant and equipment | 43 | 21 |
Cost | ||
Cost | ||
Property, plant and equipment beginning balance | 39 | 26 |
Additions | 38 | 13 |
Property, plant and equipment ending balance | 77 | 39 |
Accumulated depreciation | ||
Property, plant and equipment beginning balance | 39 | 26 |
Property, plant and equipment ending balance | 77 | 39 |
Net book value | ||
Property plant and equipment | 77 | 39 |
Accumulated depreciation | ||
Cost | ||
Property, plant and equipment beginning balance | 18 | 10 |
Property, plant and equipment ending balance | 34 | 18 |
Accumulated depreciation | ||
Property, plant and equipment beginning balance | 18 | 10 |
Charge for the year | 16 | 8 |
Property, plant and equipment ending balance | 34 | 18 |
Net book value | ||
Property plant and equipment | 34 | 18 |
Computer hardware | ||
Cost | ||
Property, plant and equipment beginning balance | 21 | |
Property, plant and equipment ending balance | 43 | 21 |
Accumulated depreciation | ||
Property, plant and equipment beginning balance | 21 | |
Property, plant and equipment ending balance | 43 | 21 |
Net book value | ||
Property plant and equipment | 43 | 21 |
Computer hardware | Cost | ||
Cost | ||
Property, plant and equipment beginning balance | 39 | 26 |
Additions | 38 | 13 |
Property, plant and equipment ending balance | 77 | 39 |
Accumulated depreciation | ||
Property, plant and equipment beginning balance | 39 | 26 |
Property, plant and equipment ending balance | 77 | 39 |
Net book value | ||
Property plant and equipment | 77 | 39 |
Computer hardware | Accumulated depreciation | ||
Cost | ||
Property, plant and equipment beginning balance | 18 | 10 |
Property, plant and equipment ending balance | 34 | 18 |
Accumulated depreciation | ||
Property, plant and equipment beginning balance | 18 | 10 |
Charge for the year | 16 | 8 |
Property, plant and equipment ending balance | 34 | 18 |
Net book value | ||
Property plant and equipment | £ 34 | £ 18 |
Right-of-use assets - propert_3
Right-of-use assets - property leases - Additional Information (Details) £ in Thousands | 12 Months Ended |
Dec. 31, 2019GBP (£) | |
Disclosure of leases [Abstract] | |
Additions to right-of-use assets | £ 1,047 |
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16 | 8.00% |
Cash outflow for leases | £ 492 |
Right-of-use assets - propert_4
Right-of-use assets - property leases - Statement of financial position, Right-of-use Asset (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure of leases [Abstract] | ||
Right-of-use assets | £ 971 | £ 326 |
Current | (460) | (316) |
Non Current | (491) | 0 |
Lease liabilities | £ 951 | £ 316 |
Right-of-use assets - propert_5
Right-of-use assets - property leases - Statement of comprehensive income, Right-of-use Asset (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of leases [Abstract] | |||
Depreciation charge of right-of-use assets | £ (382) | £ 0 | |
Interest expense (including finance cost) | 50 | 0 | £ 0 |
Expense relating to short-term leases (included in general and administrative expenses) | £ 78 | £ 0 |
Prepayments and other receiva_3
Prepayments and other receivables (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Prepayments | £ 1,309 | £ 1,362 |
Other receivables | 1,461 | 1,101 |
Total prepayments and other receivables | £ 2,770 | £ 2,463 |
Share Capital - Movements in th
Share Capital - Movements in the Company's share capital (Details) £ in Thousands | Sep. 20, 2018GBP (£)shares | Aug. 09, 2018GBP (£)shares | Dec. 31, 2019GBP (£)shares | Dec. 31, 2018GBP (£)shares | Dec. 31, 2017GBP (£)shares |
Number of shares | |||||
Beginning balance (in shares) | 105,326,638 | 105,017,401 | |||
Issuance of shares (in shares) | 251,125 | 58,112 | 5,569,050 | ||
Ending balance (in shares) | 105,326,638 | 105,326,638 | 105,017,401 | ||
Share Capital amounts in £'000s | |||||
Issued capital | £ | £ 5,266 | £ 5,266 | £ 5,251 | ||
Issuance of shares | £ | £ 12 | £ 3 | £ 15 | £ 70,325 |
Share Capital - Narrative (Deta
Share Capital - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2018shares | Dec. 31, 2019GBP (£)£ / sharesshares | Dec. 31, 2017shares | |
Disclosure of classes of share capital [line items] | |||
Price per share (in pounds per share) | £ / shares | £ 0.05 | ||
Number of shares authorized | 200,000,000 | ||
Share capital | £ | £ 10,000,000 | ||
Number of shares allotted, unrestricted, called up and fully paid (in shares) | 105,326,638 | 105,326,638 | 105,017,401 |
Restricted Stock Units | |||
Disclosure of classes of share capital [line items] | |||
Number of shares subscribed from warrant maximum (in shares) | 309,237 |
Share-based payments charge - N
Share-based payments charge - Narrative (Details) £ / shares in Units, £ in Thousands | Sep. 20, 2018shares | Aug. 09, 2018shares | Dec. 31, 2019GBP (£)shares£ / shares | Dec. 31, 2018GBP (£)shares£ / shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share-based payment charge | £ | £ 2,440 | £ 2,900 | ||
Number of share options granted (in shares) | 251,125 | 58,112 | 5,569,050 | |
Weighted average remaining contractual life of outstanding share options | 7 years 8 months 12 days | 8 years | ||
Incentive Award Plan 2017 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Fair value of equity instruments | £ | £ 2,250 | £ 2,320 | ||
Restricted Stock Units | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vesting period | 5 years | |||
Vesting trigger, share price to be maintained for 30 days | £ / shares | £ 2 | |||
Number of other equity instruments exercisable in share-based payment arrangement (in shares) | 0 | 0 | ||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | £ / shares | £ 0.57 | £ 1.46 | ||
Restricted Stock Units | Bottom of range | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vesting period | 1 year | 1 year | ||
Restricted Stock Units | Top of range | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vesting period | 4 years | 4 years | ||
Restricted Stock Units | Incentive Award Plan 2017 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of share options granted (in shares) | 740,496 | |||
Unapproved Scheme | Bottom of range | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vesting period | 1 year | 1 year | ||
Unapproved Scheme | Top of range | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vesting period | 4 years | 4 years | ||
Unapproved Scheme | Incentive Award Plan 2017 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of share options granted (in shares) | 5,569,050 | 273,390 | ||
EMI | Incentive Award Plan 2017 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of share options granted (in shares) | 2,090,847 |
Share-based payments charge - D
Share-based payments charge - Disclosure of indirect measurement of fair value of goods or services received, share options granted during period (Details) | Sep. 20, 2018shares | Aug. 09, 2018shares | Dec. 31, 2019sharesyear | Dec. 31, 2018year |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Options granted (in shares) | shares | 251,125 | 58,112 | 5,569,050 | |
Restricted Stock Units | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Dividend rate | 0.00% | 0.00% | ||
Vesting period | 5 years | |||
Unapproved Scheme | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Dividend rate | 0.00% | 0.00% | ||
Bottom of range | Restricted Stock Units | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Risk-free interest rate | 39.00% | 1.08% | ||
Expected life of options | 5.5 | 5.5 | ||
Annualized volatility | 67.98% | 69.88% | ||
Vesting period | 1 year | 1 year | ||
Bottom of range | Unapproved Scheme | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Risk-free interest rate | 76.00% | 1.08% | ||
Expected life of options | 5.5 | 5.5 | ||
Annualized volatility | 63.82% | 69.88% | ||
Vesting period | 1 year | 1 year | ||
Top of range | Restricted Stock Units | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Risk-free interest rate | 82.00% | 1.22% | ||
Expected life of options | 7 | 7 | ||
Annualized volatility | 69.71% | 71.35% | ||
Vesting period | 4 years | 4 years | ||
Top of range | Unapproved Scheme | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Risk-free interest rate | 82.00% | 1.22% | ||
Expected life of options | 7 | 7 | ||
Annualized volatility | 69.71% | 71.35% | ||
Vesting period | 4 years | 4 years |
Share-based payments charge - S
Share-based payments charge - Share options movements (Details) | Sep. 20, 2018shares | Aug. 09, 2018shares | Dec. 31, 2019shares£ / shares | Dec. 31, 2018shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Beginning balance (in shares) | 8,752,114 | 7,527,458 | ||
Options granted (in shares) | 251,125 | 58,112 | 5,569,050 | |
Options forfeited (in shares) | (121,970) | (799,524) | ||
Options expired (in shares) | (19,998) | (66,667) | ||
Ending balance (in shares) | 14,179,196 | 8,752,114 | ||
Year Of Issue, 2012, Expiry Date June 1, 2022 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Beginning balance (in shares) | 99,993 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 99,993 | 99,993 | ||
Year Of Issue, 2012, Expiry Date June 1, 2022 | Bottom of range | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 2.50 | |||
Year Of Issue, 2012, Expiry Date June 1, 2022 | Top of range | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | 7.50 | |||
Year Of Issue, 2013, Expiry Date April 15, 2023 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 2 | |||
Beginning balance (in shares) | 99,990 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | (19,998) | |||
Ending balance (in shares) | 79,992 | 99,990 | ||
Year Of Issue, 2013, Expiry Date July 29, 2023 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 2 | |||
Beginning balance (in shares) | 159,999 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 159,999 | 159,999 | ||
Year Of Issue, 2014, Expiry Date May 15, 2024 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 1.75 | |||
Beginning balance (in shares) | 109,998 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 109,998 | 109,998 | ||
Year Of Issue, 2015, Expiry Date January 29, 2025 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 1.25 | |||
Beginning balance (in shares) | 549,999 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 549,999 | 549,999 | ||
Year Of Issue, 2016, Expiry Date February 2, 2026 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 2 | |||
Beginning balance (in shares) | 240,000 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 240,000 | 240,000 | ||
Year Of Issue, 2016, Expiry Date August 3, 2026 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 1.80 | |||
Beginning balance (in shares) | 676,664 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 676,664 | 676,664 | ||
Year Of Issue, 2016, Expiry Date September 13, 2026 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 1.89 | |||
Beginning balance (in shares) | 299,997 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 299,997 | 299,997 | ||
Year Of Issue, 2016, Expiry Date September 16, 2026 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 2.04 | |||
Beginning balance (in shares) | 300,000 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 300,000 | 300,000 | ||
Year Of Issue, 2017, Expiry Date April 26, 2027 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Beginning balance (in shares) | 4,093,164 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 4,093,164 | 4,093,164 | ||
Year Of Issue, 2017, Expiry Date April 26, 2027 | Bottom of range | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 1.32 | |||
Year Of Issue, 2017, Expiry Date April 26, 2027 | Top of range | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | 1.525 | |||
Year Of Issue, 2018, Expiry Date March 8, 2028 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 1.46 | |||
Beginning balance (in shares) | 2,008,319 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | (34,614) | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 1,973,705 | 2,008,319 | ||
Year Of Issue, 2019, Expiry Date March 29, 2029 [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 570 | |||
Beginning balance (in shares) | 0 | |||
Options granted (in shares) | 3,903,050 | |||
Options forfeited (in shares) | (87,356) | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 3,815,694 | 0 | ||
Year Of Issue, 2019, Expiry Date June 11, 2029 [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 595 | |||
Beginning balance (in shares) | 0 | |||
Options granted (in shares) | 346,000 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 346,000 | 0 | ||
Year Of Issue, 2019, Expiry Date August 22, 2029 [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 457 | |||
Beginning balance (in shares) | 0 | |||
Options granted (in shares) | 100,000 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 100,000 | 0 | ||
Year Of Issue, 2019, Expiry Date November 6, 2029 [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 436 | |||
Beginning balance (in shares) | 0 | |||
Options granted (in shares) | 720,000 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 720,000 | 0 | ||
Year Of Issue, 2019, Expiry Date November 26, 2029 [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 445 | |||
Beginning balance (in shares) | 0 | |||
Options granted (in shares) | 500,000 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 500,000 | 0 | ||
EMI | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Ending balance (in shares) | 213,984 | |||
EMI | Year Of Issue, 2014, Expiry Date May 15, 2024 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 1.75 | |||
Beginning balance (in shares) | 49,998 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 49,998 | 49,998 | ||
EMI | Year Of Issue, 2015, Expiry Date January 29, 2025 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 1.25 | |||
Beginning balance (in shares) | 41,997 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 41,997 | 41,997 | ||
EMI | Year Of Issue, 2016, Expiry Date February 2, 2026 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | £ / shares | £ 2 | |||
Beginning balance (in shares) | 21,996 | |||
Options granted (in shares) | 0 | |||
Options forfeited (in shares) | 0 | |||
Options expired (in shares) | 0 | |||
Ending balance (in shares) | 21,996 | 21,996 |
Share-based payments charge -_2
Share-based payments charge - Disclosure of number and weighted average exercise prices of other equity instruments (Details) - Restricted Stock Units - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Beginning balance (in shares) | 862,473 | 1,052,236 |
Options granted (in shares) | 740,496 | |
Options exercised (in shares) | 0 | (309,237) |
Options forfeited (in shares) | 0 | (153,916) |
Ending balance (in shares) | 1,602,969 | 862,473 |
Year Of Issue, 2017, Expiry Date April 26, 2027 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Beginning balance (in shares) | 729,987 | |
Options granted (in shares) | 0 | |
Options exercised (in shares) | 0 | |
Options forfeited (in shares) | 0 | |
Ending balance (in shares) | 729,987 | 729,987 |
Year Of Issue, 2018, Expiry Date March 8, 2028 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Beginning balance (in shares) | 132,486 | |
Options granted (in shares) | 0 | |
Options exercised (in shares) | 0 | |
Options forfeited (in shares) | 0 | |
Ending balance (in shares) | 132,486 | 132,486 |
Year Of Issue, 2019, Expiry Date March 29, 2027 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted (in shares) | 740,496 | |
Options exercised (in shares) | 0 | |
Options forfeited (in shares) | 0 | |
Ending balance (in shares) | 740,496 |
Share-based payments charge - O
Share-based payments charge - Outstanding and exercisable share options by scheme (Details) | Dec. 31, 2019shares£ / shares | Dec. 31, 2018shares£ / shares | Dec. 31, 2017shares£ / shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding (in shares) | shares | 14,179,196 | 8,752,114 | 7,527,458 |
Exercisable (in shares) | shares | 5,766,277 | 3,542,884 | |
Exercise price, outstanding (per share) | £ / shares | £ 1.15 | £ 1.53 | £ 1.53 |
Exercise price, exercisable (per share) | £ / shares | £ 1.60 | £ 1.66 | |
Unapproved Scheme | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding (in shares) | shares | 13,965,212 | ||
Exercisable (in shares) | shares | 5,552,293 | ||
Exercise price, outstanding (per share) | £ / shares | £ 1.12 | ||
Exercise price, exercisable (per share) | £ / shares | £ 1.55 | ||
EMI | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding (in shares) | shares | 213,984 | ||
Exercisable (in shares) | shares | 213,984 | ||
Exercise price, outstanding (per share) | £ / shares | £ 3.06 | ||
Exercise price, exercisable (per share) | £ / shares | £ 3.06 | ||
Unapproved And EMI Share Option Schemes | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding (in shares) | shares | 14,179,196 | ||
Exercisable (in shares) | shares | 5,766,277 | ||
Exercise price, outstanding (per share) | £ / shares | £ 1.15 | ||
Exercise price, exercisable (per share) | £ / shares | £ 1.61 |
Share-based payments charge -_3
Share-based payments charge - Number of options granted, expired and the weighted average exercise price of options (Details) | Sep. 20, 2018shares | Aug. 09, 2018shares | Dec. 31, 2019shares£ / shares | Dec. 31, 2018shares£ / shares | Dec. 31, 2017£ / shares |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Beginning balance (in shares) | 8,752,114 | 7,527,458 | |||
Options granted (in shares) | 251,125 | 58,112 | 5,569,050 | ||
Options forfeited (in shares) | (121,970) | (799,524) | |||
Options expired (in shares) | (19,998) | (66,667) | |||
Ending balance (in shares) | 14,179,196 | 8,752,114 | |||
Exercisable (in shares) | 5,766,277 | 3,542,884 | |||
Exercise price, outstanding (per share) | £ / shares | £ 1.15 | £ 1.53 | £ 1.53 | ||
Exercise price, forfeited (per share) | £ / shares | 0.82 | 1.43 | |||
Exercise price, expired (per share) | £ / shares | 2 | 1.75 | |||
Exercise price, exercisable (per share) | £ / shares | £ 1.60 | £ 1.66 | |||
Employees | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Options granted (in shares) | 4,042,106 | 1,222,089 | |||
Exercise price, granted (per share) | £ / shares | £ 0.55 | £ 1.46 | |||
Directors | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Options granted (in shares) | 1,526,944 | 868,758 | |||
Exercise price, granted (per share) | £ / shares | £ 0.53 | £ 1.46 |
Share-based payments charge - E
Share-based payments charge - Equity instruments other than options granted (Details) - Restricted Stock Units - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Beginning balance (in shares) | 862,473 | 1,052,236 |
Options granted (in shares) | 740,496 | |
Number of other equity instruments exercised or vested in share-based payment arrangement | 0 | (309,237) |
Restricted stock units forfeited (in shares) | 0 | (153,916) |
Ending balance (in shares) | 1,602,969 | 862,473 |
Employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted (in shares) | 474,072 | 136,404 |
Directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted (in shares) | 266,424 | 136,986 |
Warrants - Narrative (Details)
Warrants - Narrative (Details) £ / shares in Units, £ in Thousands | Feb. 10, 2017 | Dec. 31, 2019GBP (£)shareswarrant£ / shares | Dec. 31, 2018GBP (£)shareswarrant | Dec. 31, 2017GBP (£) | Jul. 31, 2016shareswarrant | Jul. 29, 2016shareswarrant£ / shares |
Disclosure of classes of share capital [line items] | ||||||
Number of units issued (in shares) | 31,115,926 | 31,115,926 | ||||
Placing price (in pounds per unit) | £ / shares | £ 1.4365 | |||||
Number of ordinary shares (in shares) | 1 | 1 | ||||
Number warrants (in warrants) | warrant | 1 | 1 | ||||
Number of shares subscribed (in shares) | 0.4 | |||||
Transaction costs allocated to the issue of warrants (note 19) | £ | £ 7,453 | |||||
Warrants forfeited (in shares) | 121,970 | 799,524 | ||||
Consolidation of shares | 0.02 | |||||
Fair value warrant | £ | £ 895 | £ 2,492 | 1,273 | |||
Fair value adjustments recognized in loss | £ | 0 | 1,219 | 0 | |||
Fair value adjustment on derivative financial instruments (note 18) | £ | £ 1,597 | £ 0 | £ 6,650 | |||
Warrants | ||||||
Disclosure of classes of share capital [line items] | ||||||
Exercise price (pounds per share) | £ / shares | £ 1.7238 | |||||
Number of shares subscribed from warrant maximum (in shares) | 12,401,262 | 12,401,262 | ||||
Warrants forfeited (in shares) | warrant | 0 | 0 |
Warrants - Assumptions in apply
Warrants - Assumptions in applying the Black-Scholes model, fair value warrants (Details) - Warrants - £ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of classes of share capital [line items] | ||
Warrants (in shares) | 12,401,262 | 12,401,262 |
Exercise price (pounds per share) | £ 1.7238 | |
Risk-free interest rate | 0.54% | 0.76% |
Expected term to exercise | 2 years 4 months 2 days | 3 years 4 months 2 days |
Annualized volatility | 65.56% | 60.72% |
Dividend rate | 0.00% | 0.00% |
Warrants - Fair value adjustmen
Warrants - Fair value adjustments (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation Of Changes in Warrants Outstanding [Roll Forward] | |||
Beginning balance | £ 2,492 | £ 1,273 | |
Fair value adjustments recognized in loss | 0 | 1,219 | £ 0 |
Fair value adjustments recognized in profit | (1,597) | 0 | (6,650) |
Ending balance | £ 895 | £ 2,492 | £ 1,273 |
Warrants - Effect when underlyi
Warrants - Effect when underlying parameters deviate (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of share capital, reserves and other equity interest [Abstract] | |||
Variable up, Volatility (up / down 10% pts) | £ 1,306 | ||
Base case, Volatility (up / down 10% pts) | 895 | £ 2,492 | £ 1,273 |
Variable down, Volatility (up / down 10% pts) | £ 535 |
Trade and other payables (Detai
Trade and other payables (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade payables | £ 1,455 | £ 2,839 |
Other payables | 0 | 12 |
Accruals | 6,806 | 4,882 |
Total trade and other payables | £ 8,261 | £ 7,733 |
Assumed contingent obligation_3
Assumed contingent obligation related to the business combination - Narrative (Details) - GBP (£) £ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2006 | Dec. 31, 2017 | |
Disclosure of detailed information about business combination [line items] | ||||
Assumed contingent liability | £ 1,103 | £ 996 | £ 875 | |
Rhinopharma Limited | ||||
Disclosure of detailed information about business combination [line items] | ||||
Increase in value of the assumed contingent obligation | £ 107 | £ 121 | ||
Discount percent | 12.00% |
Assumed contingent obligation_4
Assumed contingent obligation related to the business combination - Reconciliation of changes in contingent liabilities (Details) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in contingent liabilities recognised in business combination [abstract] | ||
Beginning balance | £ 996 | £ 875 |
Impact of changes in foreign exchange rates | (12) | 15 |
Unwinding of discount factor | 119 | 106 |
Ending balance | £ 1,103 | £ 996 |
Assumed contingent obligation_5
Assumed contingent obligation related to the business combination - Reported change to the value of the liability (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about business combination [line items] | |||
Assumed contingent liability | £ 1,103 | £ 996 | £ 875 |
Rhinopharma Limited | |||
Disclosure of detailed information about business combination [line items] | |||
Revenue assumption, % lower | 10.00% | ||
Revenue assumption, % higher | 10.00% | ||
Risk assumption, % lower | 1.00% | ||
Risk assumption, % higher | 1.00% | ||
Discount Rate, 1% Variable | Rhinopharma Limited | |||
Disclosure of detailed information about business combination [line items] | |||
Contingent liabilities recognised in business combination, variable up | £ 1,067 | ||
Assumed contingent liability | 1,103 | ||
Contingent liabilities recognised in business combination, variable down | 1,141 | ||
Revenue Concentration Risk, 10% Variable | Rhinopharma Limited | |||
Disclosure of detailed information about business combination [line items] | |||
Contingent liabilities recognised in business combination, variable up | 1,135 | ||
Assumed contingent liability | 1,103 | ||
Contingent liabilities recognised in business combination, variable down | £ 1,071 |
Related parties transactions _2
Related parties transactions and other shareholder matters (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Chief financial officer | |||
Disclosure of transactions between related parties [line items] | |||
Number of ordinary shares purchased in related party transaction (in shares) | 88,415 | ||
Amount of ordinary shares purchased in related party transaction | £ 53 | £ 0 | |
Chief executive officer | |||
Disclosure of transactions between related parties [line items] | |||
Number of ordinary shares purchased in related party transaction (in shares) | 3,250 | ||
Amount of ordinary shares purchased in related party transaction | £ 5 | ||
Board of Directors Chairman | |||
Disclosure of transactions between related parties [line items] | |||
Number of ordinary shares purchased in related party transaction (in shares) | 247,600 | ||
Amount of ordinary shares purchased in related party transaction | £ 124 | 14 | |
Key management personnel of entity or parent | |||
Disclosure of transactions between related parties [line items] | |||
Amounts receivable, related party transactions | £ 126 | ||
Amounts Receivable, Related Party Transactions, Interest Rate | 3.90% | ||
Other employee expense | £ 26 | £ 26 | £ 0 |
Vivo Capital, OrbiMed And Abingworth | Entities with joint control or significant influence over entity | |||
Disclosure of transactions between related parties [line items] | |||
Percent of issued ordinary shares | 6.50% |
Uncategorized Items - vrna-2019
Label | Element | Value |
Increase (decrease) due to changes in accounting policy [member] | ||
Equity attributable to owners of parent | ifrs-full_EquityAttributableToOwnersOfParent | £ 484,000 |
Equity attributable to owners of parent | ifrs-full_EquityAttributableToOwnersOfParent | (20,000) |
Share capital [member] | ||
Equity attributable to owners of parent | ifrs-full_EquityAttributableToOwnersOfParent | 2,568,000 |
Equity attributable to owners of parent | ifrs-full_EquityAttributableToOwnersOfParent | 5,266,000 |
Retained earnings [member] | ||
Equity attributable to owners of parent | ifrs-full_EquityAttributableToOwnersOfParent | (28,244,000) |
Equity attributable to owners of parent | ifrs-full_EquityAttributableToOwnersOfParent | (68,653,000) |
Retained earnings [member] | Increase (decrease) due to changes in accounting policy [member] | ||
Equity attributable to owners of parent | ifrs-full_EquityAttributableToOwnersOfParent | 484,000 |
Equity attributable to owners of parent | ifrs-full_EquityAttributableToOwnersOfParent | (20,000) |
Reserve of share-based payments [member] | ||
Equity attributable to owners of parent | ifrs-full_EquityAttributableToOwnersOfParent | 2,103,000 |
Equity attributable to owners of parent | ifrs-full_EquityAttributableToOwnersOfParent | 7,923,000 |
Share premium [member] | ||
Equity attributable to owners of parent | ifrs-full_EquityAttributableToOwnersOfParent | 58,526,000 |
Equity attributable to owners of parent | ifrs-full_EquityAttributableToOwnersOfParent | £ 118,862,000 |