Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2021 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2021 |
Entity Registrant Name | MEREO BIOPHARMA GROUP PLC |
Entity Central Index Key | 0001719714 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-38452 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Comprehensive Income - GBP (£) £ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of comprehensive income [abstract] | ||
Revenue | £ 36,464 | |
Cost of revenue | (18,137) | |
Research and development expenses | (9,858) | £ (8,479) |
Administrative expenses | (8,673) | (8,212) |
Operating loss | (204) | (16,691) |
Finance income | 1 | 39 |
Finance costs | (1,987) | (2,924) |
Changes in the fair value of financial instruments | 14,363 | (94,704) |
Loss on disposal of intangible assets | (11,302) | |
Net foreign exchange loss | (1,269) | (519) |
Profit/(loss) before tax | 10,904 | (126,101) |
Taxation | 1,184 | 1,482 |
Profit/(loss) for the period, attributable to equity holders of the parent | £ 12,088 | £ (124,619) |
Basic profit/(loss) per share for the period | £ 0.02 | £ (1.05) |
Diluted loss per share for the period | £ 0 | £ (1.05) |
Fair value changes on investments held at fair value through OCI | £ 3 | |
Currency translation of foreign operations | £ (26) | 1,324 |
Total comprehensive profit/(loss) for the period, attributable to equity holders of the parent | £ 12,062 | £ (123,292) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - GBP (£) £ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Non-current assets | ||
Property, plant and equipment | £ 2,390 | £ 1,573 |
Intangible assets | 22,192 | 31,648 |
Total non-current assets | 24,582 | 33,221 |
Current assets | ||
Prepayments | 4,420 | 1,619 |
R&D tax credits | 4,004 | 2,818 |
Other taxes receivable | 788 | 804 |
Other receivables | 1,030 | 1,016 |
Cash and short-term deposits | 110,093 | 23,469 |
Total current assets | 120,335 | 29,726 |
Total assets | 144,917 | 62,947 |
Non-current liabilities | ||
Provisions | 392 | 1,216 |
Interest-bearing loans and borrowings | 17,933 | 16,142 |
Other liabilities | 78 | 62 |
Warrant liability | 34,011 | 50,775 |
Lease liability | 1,950 | 1,158 |
Total non-current liabilities | 54,364 | 69,353 |
Current liabilities | ||
Trade and other payables | 2,187 | 3,333 |
Accruals | 4,206 | 4,178 |
Provisions | 1,256 | 418 |
Lease liability | 724 | 636 |
Other liabilities | 1,499 | |
Total current liabilities | 9,872 | 8,565 |
Total liabilities | 64,236 | 77,918 |
Net assets/(liabilities) | 80,681 | (14,971) |
Equity | ||
Issued capital | 1,634 | 1,017 |
Share premium | 240,552 | 161,785 |
Other capital reserves | 130,026 | 128,374 |
Other reserves | 7,401 | 5,001 |
Employee Benefit Trust | (1,151) | (1,305) |
Accumulated losses | (297,605) | (309,693) |
Translation reserve | (176) | (150) |
Total equity | £ 80,681 | £ (14,971) |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Cash Flows - GBP (£) £ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Profit/(loss) before tax | £ 10,904 | £ (126,101) |
Adjustments to reconcile profit/(loss) before tax to net cash flows from operating activities: | ||
– Depreciation and impairment of property, plant and equipment | 260 | 1,018 |
– Share-based payment expense | 1,760 | 911 |
– Net foreign exchange loss | 1,269 | 519 |
– Increase in provisions and other liabilities | 1,513 | 38 |
– Finance income | (1) | (39) |
– Finance costs | 1,915 | 2,813 |
– Loss on disposal of intangible assets | 11,302 | |
– Transaction costs relating to PIPE | 1,349 | |
– Gain on disposal of fixed assets | (53) | |
– Fair value remeasurement on warrants | (14,363) | 94,704 |
– Disposal of intangible asset | 9,457 | |
Working capital adjustments: | ||
– (Increase)/decrease in trade and other receivables | (1,675) | (553) |
– Increase/(decrease) in trade and other payables | (1,137) | (3,329) |
– Tax credits received | 6,263 | |
Net cash flows from/(used in) operating activities | 9,902 | (11,158) |
Investing activities | ||
Proceeds from sale of property, plant and equipment | 59 | |
Sale of intangible assets (net of transaction costs) | 1,965 | |
Acquisition of subsidiary | (354) | |
Interest earned | 1 | 39 |
Net cash flows received from investing activities | 1 | 1,709 |
Financing activities | ||
Proceeds from issue of ordinary shares | 78,532 | 20,136 |
Transaction costs on issue of shares | (234) | (1,307) |
Proceeds from issue of convertible loan | 44,375 | |
Transaction costs issue of convertible loan | (3,598) | |
Capital repayment of bank loan | (8,011) | |
Interest paid on bank loan | (581) | |
Payment of lease liabilities | (290) | (1,461) |
Net cash generated from financing activities | 78,008 | 49,553 |
Net increase in cash and cash equivalents | 87,911 | 40,104 |
Cash and cash equivalents at the beginning of the period | 23,469 | 16,347 |
Effect of exchange rate changes on cash and cash equivalents | (1,287) | 370 |
Cash and cash equivalents at the end of the period | £ 110,093 | £ 56,821 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Changes in Equity - GBP (£) £ in Thousands | Total | Issued capital [member] | Share premium [member] | Other capital reserves [member] | Other reserves [member] | Employee benefit trust [member] | Accumulated losses [member] | Translation reserve |
Beginning balance at Dec. 31, 2019 | £ 40,256 | £ 294 | £ 121,684 | £ 59,147 | £ 7,000 | £ (1,305) | £ (146,065) | £ (499) |
Profit (loss) for the period | (124,619) | (124,619) | ||||||
Other comprehensive income/(loss) | 1,327 | 3 | 1,324 | |||||
Share-based payments | 911 | 911 | ||||||
Issuance of share capital, net | 16,937 | 347 | 18,715 | (2,125) | ||||
Issuance of share capital for conversion of loan notes | 54,865 | 375 | 21,386 | 33,104 | ||||
Issuance of share capital on conversion of loan notes and warrants | 1,084 | 1,084 | ||||||
Reclassification of embedded derivative | 33,481 | 33,481 | ||||||
Ending balance at Jun. 30, 2020 | 24,242 | 1,016 | 161,785 | 127,727 | 4,875 | (1,305) | (270,681) | 825 |
Beginning balance at Dec. 31, 2020 | (14,971) | 1,017 | 161,785 | 128,374 | 5,001 | (1,305) | (309,693) | (150) |
Profit (loss) for the period | 12,088 | 12,088 | ||||||
Other comprehensive income/(loss) | (26) | (26) | ||||||
Share-based payments | 1,760 | 1,760 | ||||||
Issuance of share capital, net | 79,210 | 601 | 78,609 | |||||
Exercise of share options | 46 | (108) | 154 | |||||
Conversion of warrants | 2,574 | 16 | 158 | 2,400 | ||||
Ending balance at Jun. 30, 2021 | £ 80,681 | £ 1,634 | £ 240,552 | £ 130,026 | £ 7,401 | £ (1,151) | £ (297,605) | £ (176) |
Corporate information
Corporate information | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Corporate information | 1. Corporate information Mereo BioPharma Group plc (the “Company” or “Mereo”) is a clinical-stage, United Kingdom (“UK”) based biopharmaceutical company focused on oncology and rare diseases. The Company is a public limited company incorporated and domiciled in the UK, and registered in England, with shares publicly traded on the Nasdaq Global Market via American Depositary Shares (“ADSs”) under the ticker symbol MREO. The Company’s registered office is located at Fourth Floor, 1 Cavendish Place, London, W1G 0QF, United Kingdom. These financial statements are the unaudited condensed consolidated financial statements of Mereo BioPharma Group plc and its subsidiaries for the six months ended June 30, 2021. The principal activities of the Company are the development and commercialization of innovative therapeutic pharmaceutical products. |
Significant accounting policies
Significant accounting policies | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Basis of Presentation | 2. Significant accounting policies Basis of preparation The unaudited condensed consolidated financial statements for the six Interim Financial Reporting The financial information is presented in pound sterling (“£”), which is the presentational currency of the Company. The functional currencies of consolidated subsidiaries are pound sterling and US dollars (“$”). All amounts disclosed in the condensed consolidated financial statements and notes have been rounded to the nearest thousand, unless otherwise stated. The financial information for the year ended December 31, 2020 has been extracted from the Company’s audited financial statements for that year, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2021. These condensed consolidated financial statements are unaudited and do not constitute statutory accounts of the Company as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for financial year ended December 31, 2020 has been delivered to the Registrar of Companies. The auditors reported on those accounts and their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006. Segmental information The Company has one operating segment. The Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The Company has a single portfolio of product candidates, with only direct research and development expenses monitored at a product candidate level. The CODM makes decisions over resource allocation at an overall portfolio level and the Company’s financing is managed and monitored on a consolidated basis. Going Concern The Company expects to incur significant operating losses for the foreseeable future as it continues its research and development efforts, seeks to obtain regulatory approval of its product candidates and pursues any future product candidates the Company may develop. As a result of these anticipated expenditures, the Company will need additional financing to support its continuing operations. Until such time as the Company can generate significant revenue from product sales, or other commercialization revenues, if ever, in respect of its oncology or rare disease product candidates or through partnering and/or out-licensing The Company has adequate resources to meet its liabilities as they fall due for the foreseeable future and at least the subsequent 12 months. Therefore, the Company continues to adopt the going concern basis of accounting in preparing condensed consolidated financial statements for the six months ended June 30, 2021. Summary of significant accounting policies The accounting policies adopted in the preparation of the condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2020. Additional accounting policies relevant to the six months ended June 30, 2021 are disclosed below. Revenue The Company’s ordinary business activities are the development of product candidates to key clinical milestones and either strategically partnering them or further developing such product candidates through regulatory approval and potentially commercialization. The Company may enter into a range of different agreements with third parties, including: (i) licensing agreements where the global rights to a product candidate are licensed to a partner; and (ii) collaboration agreements where rights to a product candidate are licensed to a partner but the Company retains certain rights, for example to further develop or commercialize the product candidate in specified geographical territories. Under both licensing and collaboration agreements, rights to product candidates are provided to a partner typically in exchange for consideration in the form of upfront payments and/or development, regulatory, commercial or other similar milestones, and royalties on commercial sales, should regulatory approval be obtained for the product candidates. Revenue includes income from licensing and collaboration agreements. Consideration received up front is recognized at the point in time in which the right to use an intangible asset is transferred and further payments received are recognized upon the achievement of specified development, regulatory, commercial or other similar milestones. For agreements with a right to access an intangible asset, revenue is recognized over time, typically on a straight-line basis over the life of the license or collaboration agreement. When there are other performance obligations in such agreements, the consideration is allocated using the residual approach and recognized when the performance obligations are satisfied. Income from development, regulatory, commercial or similar milestones is recognized when considered highly probable that a significant reversal will not occur. Timing of the recognition of such milestones are considered to be a key judgment, as they are often dependent on third parties. In general, for milestones which are subject to the decisions of third parties (e.g. the acceptance or approval of a filing by a regulatory authority), the Company recognizes milestone income when the decision occurs. We do not currently have any approved product candidates. Accordingly, we have not generated any commercial sales revenue during the period. Intangible assets disposed of in a license or collaboration agreement are recorded within “Cost of revenue” in the Company’s consolidated statement of comprehensive income based on an allocation of cost or value to the rights that have been licensed. Payments to third parties arising as a direct consequence of the income recognized are also recorded within “Cost of revenue” in the Company’s consolidated statement of comprehensive income. Significant accounting estimates and judgments The preparation of these condensed consolidated financial statements requires the management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases its estimates and judgments on historical experience and on various other assumptions that it considers to be reasonable. Actual results may differ from these estimates under different assumptions or conditions. The significant accounting estimates and judgments adopted in the preparation of the condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2020. Judgment is required to determine the appropriate accounting policy for the license and collaboration agreement with Ultragenyx Pharmaceutical, Inc. (“Ultragenyx”). Management has determined that the upfront proceeds from the license and collaboration agreement represent proceeds from the Company’s ordinary business activities and, therefore, represent revenue within the scope of IFRS 15, Revenue from Contracts with Customers. Judgment is also required to determine the portion of the carrying amount of the intangible asset to derecognize, relative to the value retained, as a result of the license and collaboration agreement with Ultragenyx. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Revenue From Contracts With Customers [Abstract] | |
Revenue | 3. Revenue The Company recognized upfront proceeds of £36.5 million) from the license and collaboration agreement with Ultragenyx for setrusumab as revenue in the six month period ended June 30, 2021. The variable consideration relating to future milestones and sales royalties will be recognized in the statement of comprehensive income when the milestones are achieved or the underlying commercial sales are made, in the event regulatory approval is achieved. As a consequence of the license and collaboration agreement with Ultragenyx and in accordance with terms of the 2015 asset purchase with Novartis, the Company made a payment to Novartis of million of these deductions were recognized within “Cost of revenue” in the statement of comprehensive income. As of June 30, 2021 the remaining balance to be recognized of million is included within “Other liabilities” in the condensed consolidated balance sheet. |
Finance costs and changes in th
Finance costs and changes in the fair value of financial instruments | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Finance costs and changes in the fair value of financial instruments | 4. Finance costs and changes in the fair value of financial instruments Finance costs Six months £’000 Six months Interest on convertible loan (1,792 ) (606 ) Interest on bank loan — (581 ) Interest on lease liabilities (105 ) (873 ) Accreted interest on bank loan — (753 ) Discounting of provision for deferred cash consideration (72 ) (111 ) Other (18 ) — Total finance costs (1,987 ) (2,924 ) Changes in the fair value of financial instruments Six months £’000 Six months Changes in the fair value of warrants – placement 14,301 (31,493 ) Changes in the fair value of warrants – bank loan 62 (53 ) Changes in the fair value of embedded derivative — (63,158 ) Total changes in fair value of financial instruments 14,363 (94,704 ) |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Earnings per share | 5. Earnings per share For the six months ended June 30, 2021, basic profit per share of £0.02 is calculated by dividing the profit attributable for the period to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period of 494.6 million. Diluted profit per share of £0.00 is based on dividing the profit attributable for the period by 542.9 million ordinary share equivalents, which includes the weighted average number of ordinary shares outstanding and the effect of 48.3 million dilutive ordinary share equivalents. For the six months ended June 30, 2020, basic and diluted loss per share of £1.05 is calculated by dividing the profit attributable for the period to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period of 117.8 million. The potential shares issued through equity settled transactions were considered to be anti-dilutive as they would have decreased the loss per share and were therefore excluded from the calculation of diluted loss per share. Therefore, the weighted average shares outstanding used to calculate both the basic and diluted per share was the same. |
Property, plant and equipment
Property, plant and equipment | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Property, plant and equipment | 6. Property, plant and equipment Right-of-use Right-of-use asset (equipment) Leasehold Office IT equipment Total £’000 £’000 £’000 £’000 £’000 £’000 Cost or valuation At January 1, 2021 1,848 1,169 164 71 132 3,384 Additions 923 — — — 31 954 Lease modification 134 29 — — — 163 Disposals — (861 ) — — — (861 ) Currency translation effects (5 ) (35 ) — — — (40 ) At June 30, 2021 2,900 302 164 71 163 3,600 Depreciation and impairment At January 1, 2021 (531 ) (1,023 ) (85 ) (65 ) (107 ) (1,811 ) Disposals — 861 — — — 861 Depreciation for the year (199 ) (37 ) (8 ) (4 ) (12 ) (260 ) At June 30, 2021 (730 ) (199 ) (93 ) (69 ) (119 ) (1,210 ) Net book value At January 1, 2021 1,318 146 79 6 25 1,573 At June 30, 2021 2,170 103 71 2 44 2,390 In June 2021, the Company entered into a new lease agreement for additional office space in London, UK. The Company also extended the lease term of the existing office space, which resulted in the modification of the right-of-use asset. In relation to the leasehold improvements of the office space, the Company had commitments of £0.5 million as o f |
Intangible assets
Intangible assets | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Intangible assets | 7. Intangible assets Acquired Cost At January 1, 2021 33,005 Disposal (9,456 ) At June 30, 2021 23,549 Accumulated revision to estimated value At January 1, 2021 and June 30, 2021 (1,357 ) Net book value At January 1, 2021 31,648 At June 30, 2021 22,192 On January 25, 2021, the Company’s l c l c a million was derecognized and recorded within “Cost of revenue” in the Company’s condensed consolidated statement of comprehensive income. The present value of the provision for deferred cash consideration relating to the agreement with AstraZeneca was reviewed at June 30, 2021 (see Note 9). There were no changes in the period due to changes in timelines or probability of contractual milestones being achieved (2020: £67,000) to recognize as a reduction of the intangible asset in line with our accounting policies. During the period the Company did not revise the value of any other intangible assets (2020: £nil). As the intangible assets remain under development, no amortization charge has been recognized (2020: £nil). |
Issued capital and reserves
Issued capital and reserves | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Issued capital and reserves | 8. Issued capital and reserves Number of ordinary Ordinary share £’000 Share premium £’000 At January 1, 2021 338,953,141 1,017 161,785 Issued during the period 205,557,122 617 79,001 Transaction costs for issued share capital — — (234 ) At June 30, 2021 544,510,263 1,634 240,552 At January 1, 2020 97,959,622 294 121,684 Issued during the period 240,754,340 722 41,408 Transaction costs for issued share capital — — (1,307 ) At June 30, 2020 338,713,962 1,016 161,785 Since January 1, 2021, the following alterations to the Company’s share capital have been made: i) On February 12, 2021, the Company issued and allotted 198,375,000 ordinary shares of £0.003 in nominal value in the capital of the Company at a price of £0.395 per share, equivalent to 39,675,000 ADS at a price of $2.726 per ADS, which resulted in proceeds of £78,358,125. Transaction costs incurred for the issuance of share capital was £0.2 million. ii) During the six months ended June 30, 2021, 14,954,491 warrants (equivalent to 2,990,898 ADSs) were exercised. These transactions were completed by way of a cashless exercise resulting in 4,621,147 ordinary shares (924,229 ADSs) being issued at the aggregate nominal value of the ordinary shares underlying the ADSs issued, in place of the exercise price of £0.348 per ordinary share. A further 460,135 warrants were also exercised on a cash basis at the exercise price of £0.348, which resulted in aggregate proceeds of £160,127. iii) On May 4, 2021 the Company issued and allotted 2,100,840 ordinary shares of £0.003 in nominal value in the capital of the Company at a price of £0.517 per share to Cancer Focus Fund. Other capital reserves Share- Equity £’000 Other Merger £’000 Other reserve Total £’000 At January 1, 2021 19,843 34,565 44 40,818 33,104 128,374 Share-based payments expense during the period 1,760 — — — — 1,760 Share option exercise (108 ) — — — — (108 ) At June 30, 2021 21,495 34,565 44 40,818 33,104 130,026 At January 1, 2020 18,285 — 44 40,818 — 59,147 Share-based payments expense during the period 1,061 — — — — 1,061 Shares issued (150 ) — — — — (150 ) Equity component of the Novartis convertible loan instrument and warrants — 1,084 — — — 1,084 Conversion of the Loan Notes following the Resolutions passing on 30 June 2020 — — — — 33,104 33,104 Reclassification of the remaining embedded derivative following the Resolutions passing on 30 June 2020 — 33,481 — — — 33,481 At June 30, 2020 19,196 34,565 44 40,818 33,104 127,727 Share-based payments The Company has a share option scheme under which options to subscribe for the Company’s shares have been granted to certain executives, non-executive The total charge for the six months to June 30, 2021 in respect of all share option schemes was £1.8 million (June 30, 2020: £0.9 million). During the six non-executive directors The weighted average Options over ADSs issued during the six months ended June 30, 2021 were valued using the Black-Scholes model with the following weighted average inputs: expected volatility of 98%; risk free interest rate of 1%; expected life of 10 years; and market price per ADS of $2.87. |
Provisions
Provisions | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Provisions | 9. Provisions June 30, £’000 December 31, Social security contributions on share options 51 109 Provision for deferred cash consideration 1,597 1,525 Total 1,648 1,634 Current 1,256 418 Non-current 392 1,216 The provision for social security contributions on share options is calculated based on the number of options outstanding at the reporting date that are expected to be exercised. The provision is based on the estimated gain arising on exercise of the share options, using the best estimate of the market price at the balance sheet date. The deferred cash consideration is the estimate of the quantifiable but not certain future cash payment obligations due to AstraZeneca for the acquisition of certain assets. This liability is calculated as the risk adjusted net present value of future cash payments to be made by the Company. The payments are dependent on reaching certain milestones based on the commencement and outcome of clinical trials. The likelihood of achieving such milestones is reviewed at the balance sheet date and increased or decreased as appropriate (see Note 7). |
Warrant liability
Warrant liability | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Warrant liability | 10. Warrant liability Six months £’000 Year ended Opening balance 50,775 131 Warrants issued — 4,080 Warrants exercised (2,400 ) (127 ) Fair value changes during the period (14,364 ) 46,691 Closing balance 34,011 50,775 The change in fair value of the warrant liability represents an unrealized gain for the six months ended June 30, 2021 and an unrealized loss for the six months ended June 30, 2020. Warrants - private placement As a part of the private placement transaction on June 3, 2020, the participating investors received conditional warrants entitling them to subscribe for an aggregate of 161,048,366 ordinary shares in the Company. The warrants were conditional on certain resolutions being passed at the Company’s general meeting on June 30, 2020. On the passing of the resolutions, the warrants entitled the investors to subscribe for ordinary shares at an exercise price of £0.348 per warrant and are exercisable until June 2023. The warrants are classified as liabilities as the Company does not have an unconditional right to avoid redeeming the instruments for cash. The fair value of the warrant liability was £33.2 million as of June 30, 2021 (£49.9 million as of December 31, 2020). The change in the fair value of £14.4 million was recognized as a gain in the consolidated statement of comprehensive income. In the six months ended June 30, 2021, 15,414,626 warrants were exercised. Warrants - bank loan Pursuant to the terms of its loan facility, the Company issued warrants to its two former lenders constituted by Warrant Instruments dated August 21, 2017 and October 1, 2018 (the “Warrant Instruments”). The terms of the Warrant Instruments allow for a cashless exercise and provide for ‘adjustment’ of the warrants in the event that the Company takes certain corporate actions, including issuing further equity securities or effecting a consolidation or subdivision of its shares, among others. There have been several adjustments to the Warrants Instruments to date to address issuances of ordinary shares by the Company, and in each case additional warrants were issued, resulting in each of the former lenders holding 621,954 warrants , Subsequently, on December 15, 2020, the Company prepaid all amounts due and owing to the former lenders and also issued further warrants giving each of the former lenders the right to subscribe for an additional 621,954 ordinary shares at a price of $0.4144 per ordinary share (the “2020 Warrants”). As of June 30, 2021, the former lenders have warrants outstanding to purchase a total of 1,243,908 ordinary shares at an exercise price of £2.95 per share for the Warrant Instruments and a total of 1,243,908 ordinary shares at an exercise price of $0.4144 per share for the 2020 Warrants. At June 30, 2021 the fair value of the warrants was £0.8 million. There were no warrants exercised as at June 30, 2021. Total outstanding warrants At June 30, 2021, a total of 147,431,351 warrants are outstanding. The warrants outstanding are equivalent to 27% of the ordinary share capital of the Company. The following table lists the weighted average inputs to the models used for the fair value of warrants: Six months to Year ended Expected volatility (%) 79 84-85 Risk-free interest rate (%) 0.19 0.25-(0.05 ) Expected life of share options (years) 2 3 Market price of ADS($) $ 3.17 $ 3.58 Model used Black-Scholes Black-Scholes Volatility was estimated by reference to the one year historical volatility of the historical share price of the company. |
Financial instruments fair valu
Financial instruments fair value disclosures | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Financial instruments fair value disclosures | 11. Financial instruments fair value disclosures The Company held the following financial instruments at fair value at June 30, 2021. There are no non-recurring Financial liabilities measured at fair value Fair value £’000 Fair value £’000 Fair value £’000 Warrant liabilities (note 10) — 783 33,228 Deferred consideration — — 1,597 Total — 783 34,825 There were no transfers between Level 1 and Level 2 during 2021. The management of the Company assessed that the fair values of cash and short-term deposits, other receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The movements for level 3 instruments during the period are detailed in the table below: Provision for £’000 Warrant £’000 At January 1, 2021 1,525 49,930 Settled during the period — (2,400 ) Movement during the period 72 (14,302 ) At June 30, 2021 1,597 33,228 The warrant liability is estimated using a Black Scholes model, taking into account appropriate amendments to inputs in respect of volatility, remaining expected life of the warrants and rates of interest at each reporting date. The fair value of the provision for deferred cash consideration is estimated by discounting future cash flows using rates currently available for debt on similar terms and credit risk. In addition to being sensitive to a reasonably possible change in the forecast cash flows or the discount rate, the fair value of the deferred cash consideration is also sensitive to a reasonably possible change in the probability of reaching certain milestones. The valuation requires management to use unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value. Valuation technique Significant unobservable inputs Input range Sensitivity of the input to fair value Provision for deferred cash consideration DCF WACC 2021: 12.0% 1% increase/decrease would result in a decrease/increase in fair value by £18,000. WACC 2020: 12.0% 1% increase/decrease would result in a decrease/increase in fair value by £25,000. Probability of success 2021: 13.8%–95% 10% increase/decrease would result in an increase/decrease in fair value by £0.5 million. Probability of success 2020: 13.8%–95% 10% increase/decrease would result in a increase/decrease in fair value by £0.4 million. Warrant Liability related to the PIPE Black- Scholes model Expected volatility 2021: 79.0% Volatility was estimated by reference to the one year (2020: six month) historical volatility of the historical share price of the C by |
Related party disclosures
Related party disclosures | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Related party disclosures | 12. Related party disclosures Transactions between the parent and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. Employee benefit trust In 2016 the Company set up an Employee Benefit Trust (“EBT”). The EBT holds ADS’s to satisfy the exercise of options by employees under the Company’s share-based incentive schemes. No funding was loaned to the EBT by the Company during the period to June 30, 2021 (June 30, 2020: nil). The EBT repaid £45,493 of the funding previously loaned by the Company during the period ended June 30, 2021. The EBT did not purchase any ordinary shares during the period to June 30, 2021 (2020: 7 ordinary shares). 145,830 ordinary shares owned by the EBT were used to satisfy exercise of options by employees under the Company’s share-based incentive schemes during the period. As at June 30, 2021 a cash balance of £17,866 was held by the EBT. As at December 31, 2020 a cash balance of £21,525 was held by the EBT. |
Significant accounting polici_2
Significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Basis of preparation | Basis of preparation The unaudited condensed consolidated financial statements for the six Interim Financial Reporting The financial information is presented in pound sterling (“£”), which is the presentational currency of the Company. The functional currencies of consolidated subsidiaries are pound sterling and US dollars (“$”). All amounts disclosed in the condensed consolidated financial statements and notes have been rounded to the nearest thousand, unless otherwise stated. The financial information for the year ended December 31, 2020 has been extracted from the Company’s audited financial statements for that year, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2021. These condensed consolidated financial statements are unaudited and do not constitute statutory accounts of the Company as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for financial year ended December 31, 2020 has been delivered to the Registrar of Companies. The auditors reported on those accounts and their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006. |
Segmental information | Segmental information The Company has one operating segment. The Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The Company has a single portfolio of product candidates, with only direct research and development expenses monitored at a product candidate level. The CODM makes decisions over resource allocation at an overall portfolio level and the Company’s financing is managed and monitored on a consolidated basis. |
Going concern | Going Concern The Company expects to incur significant operating losses for the foreseeable future as it continues its research and development efforts, seeks to obtain regulatory approval of its product candidates and pursues any future product candidates the Company may develop. As a result of these anticipated expenditures, the Company will need additional financing to support its continuing operations. Until such time as the Company can generate significant revenue from product sales, or other commercialization revenues, if ever, in respect of its oncology or rare disease product candidates or through partnering and/or out-licensing The Company has adequate resources to meet its liabilities as they fall due for the foreseeable future and at least the subsequent 12 months. Therefore, the Company continues to adopt the going concern basis of accounting in preparing condensed consolidated financial statements for the six months ended June 30, 2021. |
Summary of significant accounting policies | Summary of significant accounting policies The accounting policies adopted in the preparation of the condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2020. Additional accounting policies relevant to the six months ended June 30, 2021 are disclosed below. Revenue The Company’s ordinary business activities are the development of product candidates to key clinical milestones and either strategically partnering them or further developing such product candidates through regulatory approval and potentially commercialization. The Company may enter into a range of different agreements with third parties, including: (i) licensing agreements where the global rights to a product candidate are licensed to a partner; and (ii) collaboration agreements where rights to a product candidate are licensed to a partner but the Company retains certain rights, for example to further develop or commercialize the product candidate in specified geographical territories. Under both licensing and collaboration agreements, rights to product candidates are provided to a partner typically in exchange for consideration in the form of upfront payments and/or development, regulatory, commercial or other similar milestones, and royalties on commercial sales, should regulatory approval be obtained for the product candidates. Revenue includes income from licensing and collaboration agreements. Consideration received up front is recognized at the point in time in which the right to use an intangible asset is transferred and further payments received are recognized upon the achievement of specified development, regulatory, commercial or other similar milestones. For agreements with a right to access an intangible asset, revenue is recognized over time, typically on a straight-line basis over the life of the license or collaboration agreement. When there are other performance obligations in such agreements, the consideration is allocated using the residual approach and recognized when the performance obligations are satisfied. Income from development, regulatory, commercial or similar milestones is recognized when considered highly probable that a significant reversal will not occur. Timing of the recognition of such milestones are considered to be a key judgment, as they are often dependent on third parties. In general, for milestones which are subject to the decisions of third parties (e.g. the acceptance or approval of a filing by a regulatory authority), the Company recognizes milestone income when the decision occurs. We do not currently have any approved product candidates. Accordingly, we have not generated any commercial sales revenue during the period. Intangible assets disposed of in a license or collaboration agreement are recorded within “Cost of revenue” in the Company’s consolidated statement of comprehensive income based on an allocation of cost or value to the rights that have been licensed. Payments to third parties arising as a direct consequence of the income recognized are also recorded within “Cost of revenue” in the Company’s consolidated statement of comprehensive income. |
Significant accounting estimates and judgments | Significant accounting estimates and judgments The preparation of these condensed consolidated financial statements requires the management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases its estimates and judgments on historical experience and on various other assumptions that it considers to be reasonable. Actual results may differ from these estimates under different assumptions or conditions. The significant accounting estimates and judgments adopted in the preparation of the condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2020. Judgment is required to determine the appropriate accounting policy for the license and collaboration agreement with Ultragenyx Pharmaceutical, Inc. (“Ultragenyx”). Management has determined that the upfront proceeds from the license and collaboration agreement represent proceeds from the Company’s ordinary business activities and, therefore, represent revenue within the scope of IFRS 15, Revenue from Contracts with Customers. Judgment is also required to determine the portion of the carrying amount of the intangible asset to derecognize, relative to the value retained, as a result of the license and collaboration agreement with Ultragenyx. |
Finance costs and changes in _2
Finance costs and changes in the fair value of financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Summary of Finance Costs | Finance costs Six months £’000 Six months Interest on convertible loan (1,792 ) (606 ) Interest on bank loan — (581 ) Interest on lease liabilities (105 ) (873 ) Accreted interest on bank loan — (753 ) Discounting of provision for deferred cash consideration (72 ) (111 ) Other (18 ) — Total finance costs (1,987 ) (2,924 ) |
Summary of Changes in the Fair Value of Financial Instruments | Changes in the fair value of financial instruments Six months £’000 Six months Changes in the fair value of warrants – placement 14,301 (31,493 ) Changes in the fair value of warrants – bank loan 62 (53 ) Changes in the fair value of embedded derivative — (63,158 ) Total changes in fair value of financial instruments 14,363 (94,704 ) |
Property, plant and equipment (
Property, plant and equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Summary of Property, Plant and Equipment | Right-of-use Right-of-use asset (equipment) Leasehold Office IT equipment Total £’000 £’000 £’000 £’000 £’000 £’000 Cost or valuation At January 1, 2021 1,848 1,169 164 71 132 3,384 Additions 923 — — — 31 954 Lease modification 134 29 — — — 163 Disposals — (861 ) — — — (861 ) Currency translation effects (5 ) (35 ) — — — (40 ) At June 30, 2021 2,900 302 164 71 163 3,600 Depreciation and impairment At January 1, 2021 (531 ) (1,023 ) (85 ) (65 ) (107 ) (1,811 ) Disposals — 861 — — — 861 Depreciation for the year (199 ) (37 ) (8 ) (4 ) (12 ) (260 ) At June 30, 2021 (730 ) (199 ) (93 ) (69 ) (119 ) (1,210 ) Net book value At January 1, 2021 1,318 146 79 6 25 1,573 At June 30, 2021 2,170 103 71 2 44 2,390 |
Intangible assets (Tables)
Intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Summary of Detailed Information about Intangible Assets | Acquired Cost At January 1, 2021 33,005 Disposal (9,456 ) At June 30, 2021 23,549 Accumulated revision to estimated value At January 1, 2021 and June 30, 2021 (1,357 ) Net book value At January 1, 2021 31,648 At June 30, 2021 22,192 |
Issued capital and reserves (Ta
Issued capital and reserves (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Summary of Detailed Information of Ordinary Share Capital | Number of ordinary Ordinary share £’000 Share premium £’000 At January 1, 2021 338,953,141 1,017 161,785 Issued during the period 205,557,122 617 79,001 Transaction costs for issued share capital — — (234 ) At June 30, 2021 544,510,263 1,634 240,552 At January 1, 2020 97,959,622 294 121,684 Issued during the period 240,754,340 722 41,408 Transaction costs for issued share capital — — (1,307 ) At June 30, 2020 338,713,962 1,016 161,785 |
Summary of Other Capital Reserves | Other capital reserves Share- Equity £’000 Other Merger £’000 Other reserve Total £’000 At January 1, 2021 19,843 34,565 44 40,818 33,104 128,374 Share-based payments expense during the period 1,760 — — — — 1,760 Share option exercise (108 ) — — — — (108 ) At June 30, 2021 21,495 34,565 44 40,818 33,104 130,026 At January 1, 2020 18,285 — 44 40,818 — 59,147 Share-based payments expense during the period 1,061 — — — — 1,061 Shares issued (150 ) — — — — (150 ) Equity component of the Novartis convertible loan instrument and warrants — 1,084 — — — 1,084 Conversion of the Loan Notes following the Resolutions passing on 30 June 2020 — — — — 33,104 33,104 Reclassification of the remaining embedded derivative following the Resolutions passing on 30 June 2020 — 33,481 — — — 33,481 At June 30, 2020 19,196 34,565 44 40,818 33,104 127,727 |
Provisions (Tables)
Provisions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Summary of Provisions | June 30, £’000 December 31, Social security contributions on share options 51 109 Provision for deferred cash consideration 1,597 1,525 Total 1,648 1,634 Current 1,256 418 Non-current 392 1,216 |
Warrant liability (Tables)
Warrant liability (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Summary of Warrant Liability | Six months £’000 Year ended Opening balance 50,775 131 Warrants issued — 4,080 Warrants exercised (2,400 ) (127 ) Fair value changes during the period (14,364 ) 46,691 Closing balance 34,011 50,775 |
Summary of Weighted Average Inputs to the Models Used for the Fair Value of Warrants Granted | The following table lists the weighted average inputs to the models used for the fair value of warrants: Six months to Year ended Expected volatility (%) 79 84-85 Risk-free interest rate (%) 0.19 0.25-(0.05 ) Expected life of share options (years) 2 3 Market price of ADS($) $ 3.17 $ 3.58 Model used Black-Scholes Black-Scholes |
Financial instruments fair va_2
Financial instruments fair value disclosures (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Text block [abstract] | |
Summary of Fair Value Hierarchy | The Company held the following financial instruments at fair value at June 30, 2021. There are no non-recurring Financial liabilities measured at fair value Fair value £’000 Fair value £’000 Fair value £’000 Warrant liabilities (note 10) — 783 33,228 Deferred consideration — — 1,597 Total — 783 34,825 |
Summary of Changes in Level 3 | The movements for level 3 instruments during the period are detailed in the table below: Provision for £’000 Warrant £’000 At January 1, 2021 1,525 49,930 Settled during the period — (2,400 ) Movement during the period 72 (14,302 ) At June 30, 2021 1,597 33,228 |
Summary of Changes in Significant Unobservable Inputs Under Valuation Model Used in Level Fair Value Measurement | Valuation technique Significant unobservable inputs Input range Sensitivity of the input to fair value Provision for deferred cash consideration DCF WACC 2021: 12.0% 1% increase/decrease would result in a decrease/increase in fair value by £18,000. WACC 2020: 12.0% 1% increase/decrease would result in a decrease/increase in fair value by £25,000. Probability of success 2021: 13.8%–95% 10% increase/decrease would result in an increase/decrease in fair value by £0.5 million. Probability of success 2020: 13.8%–95% 10% increase/decrease would result in a increase/decrease in fair value by £0.4 million. Warrant Liability related to the PIPE Black- Scholes model Expected volatility 2021: 79.0% Volatility was estimated by reference to the one year (2020: six month) historical volatility of the historical share price of the C by |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - Ultragenyx Collaboration Agreement [Member] £ in Millions, $ in Millions | Jan. 25, 2021GBP (£) | Jan. 25, 2021USD ($) | Jun. 30, 2021GBP (£) | Jun. 30, 2021USD ($) |
Disclosure Of Revenue From Contracts With Customers [Line Items] | ||||
Upfront Payment Received | £ 36.5 | $ 50 | £ 36.5 | $ 50 |
Milestone payment to ultragenyx collaboration agreement deductions costs | 2.4 | |||
Milestone payment to ultragenyx collaboraation agreement deductions costs recognised | 0.9 | |||
Milestone payment to ultragenyx collaboration agreement deductions costs yet to be recogised | 1.5 | |||
Novartis [member] | ||||
Disclosure Of Revenue From Contracts With Customers [Line Items] | ||||
Milestone payment for regulatory and commercial achievements | £ 7.2 | $ 10 |
Finance costs and changes in _3
Finance costs and changes in the fair value of financial instruments - Summary of Finance Costs (Detail) - GBP (£) £ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of Other Income Expenses And Adjustment [Line Items] | ||
Interest on convertible loan | £ (1,792) | £ (606) |
Interest on bank loan | (581) | |
Interest on lease liabilities | (105) | (873) |
Accreted interest on bank loan | (753) | |
Discounting of provision for deferred cash consideration | (72) | (111) |
Other interest | (18) | |
Total finance costs | £ (1,987) | £ (2,924) |
Finance costs and changes in _4
Finance costs and changes in the fair value of financial instruments - Summary of Changes in the Fair Value of Financial Instruments (Detail) - GBP (£) £ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of Changes in the fair value of financial instruments [Line Items] | ||
Changes in the fair value of warrants | £ 14,363 | £ (94,704) |
Placement [Member] | ||
Disclosure of Changes in the fair value of financial instruments [Line Items] | ||
Changes in the fair value of warrants | 14,301 | (31,493) |
Bank Loan [member] | ||
Disclosure of Changes in the fair value of financial instruments [Line Items] | ||
Changes in the fair value of warrants | £ 62 | (53) |
Embedded Derivative [Member] | ||
Disclosure of Changes in the fair value of financial instruments [Line Items] | ||
Changes in the fair value of warrants | £ (63,158) |
Earnings per share - Additional
Earnings per share - Additional information (Detail) - £ / shares shares in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings per share [abstract] | ||
Basic profit per share | £ 0.02 | £ (1.05) |
Weighted average number of ordinary shares outstanding | 494.6 | 117.8 |
Diluted profit per share | £ 0 | £ (1.05) |
Adjusted weighted average number of ordinary shares outstanding | 542.9 | |
Dilutive ordinary share equivalents | 48.3 | |
Basic and diluted loss per share | £ 1.05 |
Property, plant and equipment -
Property, plant and equipment - Additional information (Detail) £ in Millions | Jun. 30, 2021GBP (£) |
Disclosure of detailed information about property, plant and equipment [line items] | |
Commitments | £ 0.5 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) £ in Thousands | 6 Months Ended |
Jun. 30, 2021GBP (£) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | £ 1,573 |
Ending balance | 2,390 |
Cost or valuation member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 3,384 |
Additions | 954 |
Lease modification | 163 |
Disposals | (861) |
Currency translation effects | (40) |
Ending balance | 3,600 |
Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | (1,811) |
Disposals | 861 |
Depreciation for the year | (260) |
Ending balance | (1,210) |
Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 79 |
Ending balance | 71 |
Leasehold improvements [member] | Cost or valuation member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 164 |
Ending balance | 164 |
Leasehold improvements [member] | Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | (85) |
Depreciation for the year | (8) |
Ending balance | (93) |
Office equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 6 |
Ending balance | 2 |
Office equipment [member] | Cost or valuation member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 71 |
Ending balance | 71 |
Office equipment [member] | Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | (65) |
Depreciation for the year | (4) |
Ending balance | (69) |
IT equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 25 |
Ending balance | 44 |
IT equipment [member] | Cost or valuation member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 132 |
Additions | 31 |
Ending balance | 163 |
IT equipment [member] | Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | (107) |
Depreciation for the year | (12) |
Ending balance | (119) |
Right-of-use asset (building) [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 1,318 |
Ending balance | 2,170 |
Right-of-use asset (building) [member] | Cost or valuation member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 1,848 |
Additions | 923 |
Lease modification | 134 |
Currency translation effects | (5) |
Ending balance | 2,900 |
Right-of-use asset (building) [member] | Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | (531) |
Depreciation for the year | (199) |
Ending balance | (730) |
Right-of-use asset (equipment) [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 146 |
Ending balance | 103 |
Right-of-use asset (equipment) [member] | Cost or valuation member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 1,169 |
Lease modification | 29 |
Disposals | (861) |
Currency translation effects | (35) |
Ending balance | 302 |
Right-of-use asset (equipment) [member] | Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | (1,023) |
Disposals | 861 |
Depreciation for the year | (37) |
Ending balance | £ (199) |
Intangible Assets - Summary of
Intangible Assets - Summary of Detailed Information about Intangible Assets (Detail) £ in Thousands | 6 Months Ended |
Jun. 30, 2021GBP (£) | |
Disclosure of detailed information about intangible assets [line items] | |
Beginning balance | £ 31,648 |
Ending balance | 22,192 |
Cost or valuation member] | |
Disclosure of detailed information about intangible assets [line items] | |
Beginning balance | 33,005 |
Disposals | (9,456) |
Ending balance | 23,549 |
Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Beginning balance | (1,357) |
Ending balance | £ (1,357) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) £ in Thousands, $ in Millions | Jan. 25, 2021GBP (£) | Jan. 25, 2021USD ($) | Jun. 30, 2021GBP (£) | Jun. 30, 2021USD ($) | Dec. 31, 2020GBP (£) |
Disclosure of detailed information about intangible assets [line items] | |||||
Amortisation charge recognised on intangible assets | £ 0 | £ 0 | |||
Ultragenyx Collaboration Agreement [Member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Upfront Payment Received | £ 36,500 | $ 50 | 36,500 | $ 50 | |
Derecognized intangible assets other than goodwill | £ 9,500 | ||||
Potential future milestones to be received | $ | $ 254 | ||||
MPH-966 [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Contractual milestones achieved | 67,000 | ||||
Other intangible assets [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Revision in the value of any other intangible assets | £ 0 | £ 0 |
Issued Capital and Reserves - S
Issued Capital and Reserves - Summary of Detailed Information of Ordinary Share Capital (Detail) - GBP (£) £ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of classes of share capital [line items] | ||
Beginning balance | £ (14,971) | £ 40,256 |
Issued during the period | 79,210 | 16,937 |
Ending balance | 80,681 | 24,242 |
Beginning balance | 161,785 | |
Ending balance | 240,552 | |
Share premium [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | 161,785 | 121,684 |
Issued during the period | 78,609 | 18,715 |
Ending balance | 240,552 | 161,785 |
Beginning balance | 161,785 | 121,684 |
Issued for public offering | 79,001 | 41,408 |
Transaction costs for issued share capital | (234) | (1,307) |
Ending balance | 240,552 | 161,785 |
Ordinary shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | 1,017 | 294 |
Issued during the period | 617 | 722 |
Ending balance | £ 1,634 | £ 1,016 |
Ordinary shares issued and fully paid, Beginning balance | 338,953,141 | 97,959,622 |
Issued | 205,557,122 | 240,754,340 |
Ordinary shares issued and fully paid, Ending balance | 544,510,263 | 338,713,962 |
Issued Capital and Reserves - A
Issued Capital and Reserves - Additional Information (Detail) £ / shares in Units, £ in Thousands | May 04, 2021£ / sharesshares | Feb. 12, 2021$ / shares£ / sharesshares | Feb. 12, 2021GBP (£)£ / sharesshares | Jun. 30, 2021$ / shares | Jun. 30, 2021GBP (£)sharesyr£ / shares | Jun. 30, 2020GBP (£) |
Disclosure of classes of share capital [line items] | ||||||
Exercise price, share options granted | £ / shares | $ / shares | $ 2.87 | |||||
Number of warrants exercised during period | 14,954,491 | |||||
Number of ADS equivalents to warrants issued during period | 2,990,898 | |||||
Share-based payment expenses | £ | £ 1,800 | £ 900 | ||||
Expected volatility (%) | 98.00% | |||||
Risk-free interest rate (%) | 1.00% | |||||
Expected life of share options | yr | 10 | |||||
Noncash Warrant Exercises [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of warrants exercised during period | 460,135 | |||||
Exercise price per warrants | 0.348 | 0.348 | ||||
Proceeds from issue of warrants | £ | £ 160,127 | |||||
2019 Equity Incentive Plan [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of options granted | 2,378,060 | |||||
Share based compensation by share based payment arrangement exercise price per option | $ / shares | $ 2.88 | |||||
Weighted average fair value of options granted | £ / shares | £ 1.84 | |||||
2019 Non-Executive Director Equity Incentive Plan [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of options granted | 296,000 | |||||
Share based compensation by share based payment arrangement exercise price per option | $ / shares | $ 2.81 | |||||
Weighted average fair value of options granted | £ / shares | £ 1.80 | |||||
Conversion Of Warrants [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Exercise price per warrants | 0.348 | 0.348 | ||||
Ordinary shares [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Ordinary shares issued and allotted | 2,100,840 | 198,375,000 | 198,375,000 | |||
Nominal value | £ / shares | £ 0.003 | £ 0.003 | £ 0.003 | |||
Ordinary shares price per share | £ / shares | £ 0.517 | £ 0.395 | ||||
Proceeds from issue of ordinary shares | £ | £ 78,358,125 | |||||
Transaction costs associated with issue of share capital | £ | £ 200 | |||||
Ordinary shares [member] | Conversion Of Warrants [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number Of Warrants converted | 4,621,147 | |||||
ADS [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Ordinary shares issued and allotted | 39,675,000 | 39,675,000 | ||||
Ordinary shares price per share | $ / shares | £ 2.726 | |||||
ADS [Member] | Conversion Of Warrants [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number Of Warrants converted | 924,229 |
Issued Capital and Reserves -_2
Issued Capital and Reserves - Summary of Other Capital Reserves (Detail) - GBP (£) £ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of classes of share capital [line items] | ||
Beginning balance | £ 5,001 | |
Share-based payments expense during the period | 1,760 | £ 911 |
Shares issued | 79,210 | 16,937 |
Equity component of the Novartis convertible loan instrument and warrants | 54,865 | |
Ending balance | 7,401 | |
Capital reserve [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | 128,374 | 59,147 |
Share-based payments expense during the period | 1,760 | 1,061 |
Share option exercise | (108) | |
Shares issued | (150) | |
Equity component of the Novartis convertible loan instrument and warrants | 1,084 | |
Conversion of the Loan Notes following the Resolutions passing on 30 June 2020 | 33,104 | |
Reclassification of the remaining embedded derivative following the Resolutions passing on 30 June 2020 | 33,481 | |
Ending balance | 130,026 | 127,727 |
Share-based payments [member] | Capital reserve [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | 19,843 | 18,285 |
Share-based payments expense during the period | 1,760 | 1,061 |
Share option exercise | (108) | |
Shares issued | (150) | |
Ending balance | 21,495 | 19,196 |
Equity component of convertible loan [member] | Capital reserve [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | 34,565 | |
Equity component of the Novartis convertible loan instrument and warrants | 1,084 | |
Reclassification of the remaining embedded derivative following the Resolutions passing on 30 June 2020 | 33,481 | |
Ending balance | 34,565 | 34,565 |
Other Warrents Issued [Member] | Capital reserve [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | 44 | 44 |
Ending balance | 44 | 44 |
Merger reserve [member] | Capital reserve [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | 40,818 | 40,818 |
Ending balance | 40,818 | 40,818 |
Other Reserve [Member] | Capital reserve [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | 33,104 | |
Conversion of the Loan Notes following the Resolutions passing on 30 June 2020 | 33,104 | |
Ending balance | £ 33,104 | £ 33,104 |
Provisions - Summary of Provisi
Provisions - Summary of Provisions (Detail) - GBP (£) £ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Disclosure provisions [line items] | ||
Provisions | £ 1,648 | £ 1,634 |
Current | 1,256 | 418 |
Non-current | 392 | 1,216 |
Social security contributions on share options [member] | ||
Disclosure provisions [line items] | ||
Provisions | 51 | 109 |
Provision for deferred cash consideration [member] | ||
Disclosure provisions [line items] | ||
Provisions | £ 1,597 | £ 1,525 |
Warrant Liability - Summary of
Warrant Liability - Summary of Warrant Liability (Detail) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Warrant Liability [Abstract] | ||
Opening balance | £ 50,775 | £ 131 |
Warrants issued | 0 | 4,080 |
Warrants exercised | (2,400) | (127) |
Fair value changes during the period | (14,364) | 46,691 |
Closing balance | £ 34,011 | £ 50,775 |
Warrant Liability - Additional
Warrant Liability - Additional Information (Detail) £ in Thousands | 6 Months Ended | |||||
Jun. 30, 2021GBP (£)shares | Dec. 31, 2020GBP (£) | Dec. 15, 2020shares | Jun. 30, 2020sharesPence | Jun. 03, 2020shares | Dec. 31, 2019GBP (£) | |
Disclosure of classes of share capital [line items] | ||||||
Percentage of ordinary share capital | 27.00% | |||||
Warrant liability | £ | £ 34,011 | £ 50,775 | £ 131 | |||
fair value of the warrant liability | £ | £ 33,200 | £ 49,900 | ||||
Number of warrants exercised during period | 14,954,491 | |||||
Private placement [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Warrants issued | 161,048,366 | |||||
Fair Value Adjustments Of Warrants | £ | £ 14,400 | |||||
Exercise price per warrants | Pence | 0.348 | |||||
Number of warrants exercised during period | 15,414,626 | |||||
Bank loan [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Warrant liability | £ | £ 800 | |||||
Bank loan [member] | Warrants Subscribed [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Warrants issued | 621,954 | |||||
Exercise price per warrants | 2.95 | |||||
Bank loan [member] | Warrants Subscribed [Member] | Ordinary shares [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Exercise price per warrants | 2.95 | |||||
Class Of Warrant Number Of Securities Called By Warrants | 1,243,908 | |||||
Bank loan [member] | Two Thousand and Twenty Warrants [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Warrants issued | 621,954 | |||||
Exercise price per warrants | 0.4144 | |||||
Bank loan [member] | Two Thousand and Twenty Warrants [Member] | Ordinary shares [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Exercise price per warrants | 0.4144 | |||||
Class Of Warrant Number Of Securities Called By Warrants | 1,243,908 | |||||
Warrant [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of warrants outstanding | 147,431,351 |
Warrant Liability - Summary o_2
Warrant Liability - Summary of Weighted Average Inputs to the Models Used for the Fair Value of Warrants Granted (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021$ / shares | Dec. 31, 2020£ / shares | |
Disclosure of classes of share capital [line items] | ||
Expected volatility (%) | 98.00% | |
Risk-free interest rate (%) | 1.00% | |
Warrant liability [member] | ||
Disclosure of classes of share capital [line items] | ||
Expected volatility (%) | 79.00% | |
Risk-free interest rate (%) | 0.19% | |
Expected life of share options (years) | 2 years | 3 years |
Market price of ADS($)/ ordinary shares (£) | (per share) | $ 3.17 | £ 3.58 |
Model used | Black-Scholes | Black-Scholes |
Bottom of range [member] | Warrant liability [member] | ||
Disclosure of classes of share capital [line items] | ||
Expected volatility (%) | 84.00% | |
Risk-free interest rate (%) | 0.25% | |
Top of range [member] | Warrant liability [member] | ||
Disclosure of classes of share capital [line items] | ||
Expected volatility (%) | 85.00% | |
Risk-free interest rate (%) | (0.05%) |
Financial instruments fair va_3
Financial instruments fair value disclosures - Summary of Fair Value Hierarchy (Detail) £ in Thousands | Jun. 30, 2021GBP (£) |
Level 2 of fair value hierarchy [member] | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | |
Disclosure of fair value measurement of liabilities [line items] | |
Total | £ 783 |
Level 2 of fair value hierarchy [member] | Warrant liability [member] | |
Disclosure of fair value measurement of liabilities [line items] | |
Financial liabilities at fair value | 783 |
Level 3 of fair value hierarchy [member] | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | |
Disclosure of fair value measurement of liabilities [line items] | |
Total | 34,825 |
Level 3 of fair value hierarchy [member] | Warrant liability [member] | |
Disclosure of fair value measurement of liabilities [line items] | |
Financial liabilities at fair value | 33,228 |
Level 3 of fair value hierarchy [member] | Deferred consideration | |
Disclosure of fair value measurement of liabilities [line items] | |
Financial liabilities at fair value | £ 1,597 |
Financial instruments fair va_4
Financial instruments fair value disclosures - Summary of Changes in Level 3 (Detail) £ in Thousands | 6 Months Ended |
Jun. 30, 2021GBP (£) | |
Summary of changes in level 3 of fair value of hierarchy [Line Items] | |
Beginning balance | £ 1,634 |
Ending balance | 1,648 |
Deferred consideration | |
Summary of changes in level 3 of fair value of hierarchy [Line Items] | |
Beginning balance | 1,525 |
Ending balance | 1,597 |
Level 3 of fair value hierarchy [member] | |
Summary of changes in level 3 of fair value of hierarchy [Line Items] | |
Beginning balance | 49,930 |
Settled during the period | (2,400) |
Movement during the period | (14,302) |
Ending balance | 33,228 |
Level 3 of fair value hierarchy [member] | Deferred consideration | |
Summary of changes in level 3 of fair value of hierarchy [Line Items] | |
Beginning balance | 1,525 |
Movement during the period | 72 |
Ending balance | £ 1,597 |
Financial instruments fair va_5
Financial instruments fair value disclosures- Summary of Changes In Significant Unobservable Inputs Under Valuation Model Used In Level Fair Value Measurement (Detail) - GBP (£) £ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Weighted average cost of capital [member] | Provision for deferred cash consideration [member] | Discounted cash flow model [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement [line items] | ||
WACC | 12.00% | 12.00% |
Percentage of increase decrease in sensitivity analysis affecting input to fair value | 1.00% | 1.00% |
Increase decrease in sensitivity analysis affecting input to fair value | £ 18,000 | £ 25,000 |
Probability of success [member] | Provision for deferred cash consideration [member] | Discounted cash flow model [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement [line items] | ||
Percentage of increase decrease in sensitivity analysis affecting input to fair value | 10.00% | 10.00% |
Increase decrease in sensitivity analysis affecting input to fair value | £ 500 | £ 400 |
Expected Volatility One [Member] | ||
Disclosure of significant unobservable inputs used in fair value measurement [line items] | ||
Expected Volatility | 72.50% | |
Financial liabilities, at fair value | £ 1,700 | |
Bottom of range [member] | Probability of success [member] | Provision for deferred cash consideration [member] | Discounted cash flow model [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement [line items] | ||
Probability of success | 13.80% | 13.80% |
Top of range [member] | Probability of success [member] | Provision for deferred cash consideration [member] | Discounted cash flow model [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement [line items] | ||
Probability of success | 95.00% | 95.00% |
Weighted average [member] | Expected Volatility Member [Member] | Warrants Related To Pipe member [Member] | Black And Scholes Method [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement [line items] | ||
Expected Volatility | 79.00% | 85.10% |
Related Party Disclosures - Add
Related Party Disclosures - Additional Information (Detail) - GBP (£) £ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | |||
Amount paid to trust by the company | £ 0 | £ 0 | |
Shares purchased by the EBT | 0 | 7 | |
Repayment of debt by Employee benefit trust | £ 45,493 | ||
Cash balance held by the EBT | £ 17,866 | £ 21,525 | |
Ordinary Shares [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Stock Held By Employee Benefit Trust | 145,830 |