Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2022 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2022 |
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 Statements of Comprehensive (Loss)/Income - GBP (£) £ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of comprehensive income [abstract] | ||
Revenue | £ 36,464 | |
Cost of revenue | £ 352 | (18,137) |
Research and development expenses | (13,322) | (9,858) |
Administrative expenses | (8,840) | (8,673) |
Operating loss | (21,810) | (204) |
Finance income | 173 | 1 |
Finance costs | (1,859) | (1,987) |
Changes in the fair value of financial instruments | 1,210 | 14,363 |
Net foreign exchange gain/(loss) | 1,582 | (1,269) |
Other income and expenses | 811 | 0 |
(Loss)/profit before tax | (19,893) | 10,904 |
Taxation | 735 | 1,184 |
(Loss)/profit for the period, attributable to equity holders of the parent | (19,158) | 12,088 |
Items that may be reclassified subsequently to profit or loss: | ||
Currency translation of foreign operations | (1,775) | (26) |
Total comprehensive (loss)/income for the period, attributable to equity holders of the parent | £ (20,933) | £ 12,062 |
Basic (loss)/profit per share for the period (in £) | £ (0.03) | £ 0.02 |
Diluted loss per share for the period (in £) | £ (0.03) | £ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - GBP (£) £ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Non-current assets | ||
Property, plant and equipment | £ 2,114 | £ 2,530 |
Intangible assets | 24,116 | 24,564 |
Total non-current assets | 26,230 | 27,094 |
Current assets | ||
Prepayments | 2,741 | 2,799 |
R&D tax credits | 740 | |
Other taxes receivable | 900 | 809 |
Other receivables | 1,010 | 1,419 |
Cash and short-term deposits | 76,415 | 94,296 |
Total current assets | 81,806 | 99,323 |
Total assets | 108,036 | 126,417 |
Non-current liabilities | ||
Provisions | 1,389 | 1,320 |
Convertible loan notes | 14,384 | |
Warrant liability | 222 | 8,336 |
Lease liability | 1,456 | 1,754 |
Other liabilities | 177 | 80 |
Total non-current liabilities | 3,244 | 25,874 |
Current liabilities | ||
Trade and other payables | 2,821 | 2,499 |
Accruals | 5,088 | 3,826 |
Current tax liabilities | 1,522 | |
Provisions | 2,945 | 2,803 |
Convertible loan notes | 15,952 | |
Warrant liability | 6,904 | |
Lease liability | 580 | 622 |
Other liabilities | 917 | 1,269 |
Total current liabilities | 35,207 | 12,541 |
Total liabilities | 38,451 | 38,415 |
Net assets | 69,585 | 88,002 |
Equity | ||
Issued capital | 1,755 | 1,755 |
Share premium | 247,460 | 247,460 |
Other capital reserves | 132,269 | 129,835 |
Employee Benefit Trust shares | (1,058) | (1,140) |
Other reserves | 7,401 | 7,401 |
Accumulated losses | (316,126) | (296,968) |
Translation reserve | (2,116) | (341) |
Total equity | £ 69,585 | £ 88,002 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - GBP (£) £ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities | ||
(Loss)/profit before tax | £ (19,893) | £ 10,904 |
Adjustments to reconcile (loss)/profit to net cash flows from operating activities | ||
- Depreciation and impairment of property, plant and equipment | 436 | 260 |
- Share-based payment expense | 2,446 | 1,760 |
- Net foreign exchange (gain) loss | (2,100) | 1,269 |
- Increase in provisions and other liabilities | 307 | 1,513 |
- Finance income | (173) | (1) |
- Finance costs | 1,696 | 1,915 |
- Changes in the fair value of financial instruments | (1,210) | (14,363) |
- Other income and expenses | (811) | 0 |
- Out-license of intangible asset | 9,457 | |
- Other non-cash movements | 330 | |
Working capital adjustments: | ||
- Decrease/(increase) in receivables and prepayments | 331 | (1,675) |
- Increase/(decrease) in trade and other payables and accruals | 1,364 | (1,137) |
- Taxation | (1,529) | |
Net cash flows (used in)/from operating activities | (18,806) | 9,902 |
Investing activities | ||
Purchase of property, plant and equipment | (10) | |
Proceeds from intangible asset | 1,484 | |
Payments to CVR holders | (673) | |
Interest earned | 173 | 1 |
Net cash flows from investing activities | 974 | 1 |
Financing activities | ||
Proceeds from issuance of ordinary shares | 78,532 | |
Transaction costs on issuance of shares | (234) | |
Proceeds from TAP agreement | 153 | |
Payment of lease liabilities | (445) | (290) |
Net cash flows (used in)/from financing activities | (292) | 78,008 |
Net (decrease)/increase in cash and cash equivalents | (18,124) | 87,911 |
Cash and cash equivalents at the beginning of the period | 94,296 | 23,469 |
Effect of exchange rate changes on cash and cash equivalents | 243 | (1,287) |
Cash and cash equivalents at the end of the period | £ 76,415 | £ 110,093 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - GBP (£) £ in Thousands | Total | Issued capital [member] | Share premium [member] | Other capital reserves [member] | Employee benefit trust [member] | Other reserves [member] | Accumulated losses [member] | Translation reserve |
Beginning balance at Dec. 31, 2020 | £ (14,971) | £ 1,017 | £ 161,785 | £ 128,374 | £ (1,305) | £ 5,001 | £ (309,693) | £ (150) |
Profit (loss) for the period | 12,088 | 12,088 | ||||||
Other comprehensive income/(loss) | (26) | (26) | ||||||
Total comprehensive (loss)/income for the period, attributable to equity holders of the parent | 12,062 | 12,088 | (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 | (1,151) | 7,401 | (297,605) | (176) |
Beginning balance at Dec. 31, 2021 | 88,002 | 1,755 | 247,460 | 129,835 | (1,140) | 7,401 | (296,968) | (341) |
Profit (loss) for the period | (19,158) | (19,158) | ||||||
Other comprehensive income/(loss) | (1,775) | (1,775) | ||||||
Total comprehensive (loss)/income for the period, attributable to equity holders of the parent | (20,933) | (19,158) | (1,775) | |||||
Share-based payments | 2,446 | 2,446 | ||||||
Exercise of share options | (82) | 82 | ||||||
Issuance of warrants | 70 | 70 | ||||||
Ending balance at Jun. 30, 2022 | £ 69,585 | £ 1,755 | £ 247,460 | £ 132,269 | £ (1,058) | £ 7,401 | £ (316,126) | £ (2,116) |
Corporate information
Corporate information | 6 Months Ended |
Jun. 30, 2022 | |
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 rare diseases and oncology. 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, 2022. 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, 2022 | |
Text block [abstract] | |
Significant accounting policies | 2. Significant accounting policies Basis of preparation The unaudited condensed consolidated financial statements for the six-month period ended June 30, 2022 have been prepared in accordance with International Accounting Standards (IAS) 34, 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, 2021 has been extracted from the Company’s audited financial statements for that year, filed with the SEC on March 31, 2022. 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, 2021 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 by product candidate. 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 going concern basis has been applied in these condensed consolidated financial statements as the Company has adequate resources to meet its liabilities as they fall due for the foreseeable future and at least 12 months from the issuance date of these condensed consolidated financial statements. 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. Until such time as the Company can generate significant revenue from product sales, or other commercial revenues, if ever, or through licensing and/or collaboration agreements for its rare disease or oncology product candidates, the Company will seek to finance its operations through a combination of public or private equity or debt financings or other sources. 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, 2021. 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, 2021. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Revenue From Contracts With Customers [Abstract] | |
Revenue | 3. Revenue The Company recognized upfront proceeds of £36.5 million ($50.0 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 obtained. 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 £7.2 million ($10.0 million). The payment included a deduction for costs of £2.4 million which was deferred to be recognized in the statement of comprehensive income when the associated costs are incurred. In the six-month period ended June 30, 2022, £0.4 million (six months ended June 30, 2021: £0.9 million) of these deductions were recognized within “Cost of revenue” in the condensed consolidated (loss)/ income. As of June 30, 2022, the remaining balance to be recognized of £ million (June 30, 2021: £ million and December 31, 2021: £ million) is included within “Other liabilities” in the condensed consolidated balance sheets . |
Finance income, finance costs a
Finance income, finance costs and changes in the fair value of financial instruments | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Finance income, finance costs and changes in the fair value of financial instruments | 4. Finance income, finance costs and changes in the fair value of financial instruments Finance income Six months £’000 Six months £’000 Interest income on short-term deposits 173 1 Total 173 1 Finance costs Six months £’000 Six months £’000 Interest on convertible loan notes (1,567 ) (1,792 ) Interest on lease liabilities (113 ) (105 ) Discounting of provision for deferred cash consideration (163 ) (72 ) Other (16 ) (18 ) Total (1,859 ) (1,987 ) Changes in the fair value of financial instruments Six months £’000 Six months £’000 Changes in the fair value of warrants – placement 1,091 14,301 Changes in the fair value of warrants – bank loan 119 62 Total 1,210 14,363 |
Other income and expenses
Other income and expenses | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Other income and expenses | 5. Other income and expenses In February 2022, the Company received a milestone payment of $2.0 million (£1.5 million) under the Navi License Agreement with OncXerna. An associated payment was made to the former shareholders of Mereo BioPharma 5, Inc. under the Contingent Value Rights Agreement (“ ”) million (£0.7 million), after deductions of costs, charges and expenditures, which resulted in other income, net of £0.8 million. |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Earnings per share | 6. Earnings per share Basic (loss)/profit per share is calculated by dividing the (loss)/profit attributable for the period to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period. Diluted loss per share is based on dividing the loss attributable for the period, adjusted for the effect of dilutive ordinary shares, by ordinary share equivalents, which includes the weighted average number of ordinary shares outstanding and the effect of dilutive ordinary share equivalents. Six months to 2022 Six months to 2021 Numerator – Basic earnings per share (£’000) (Loss)/profit attributable to equity holders of the parent (19,158 ) 12,088 Denominator – Basic earnings per share Weighted average number of ordinary shares 583,892,445 494,617,344 (Loss)/profit per share – basic (£) (0.03 ) 0.02 Numerator – Diluted earnings per share (£’000): (Loss)/profit attributable to equity holders of the parent (19,158 ) 12,088 Effect of dilutive ordinary shares — (14,363 ) Numerator – Diluted earnings per share (19,158 ) (2,275 ) Denominator – Diluted earnings per share: Number of ordinary shares used for basic earnings per share 583,892,445 494,617,344 Weighted average effect of dilutive ordinary shares — 48,264,422 Weighted average number of diluted ordinary shares outstanding 583,892,445 542,881,766 Loss per share – diluted (£) (0.03 ) (0.00 ) For the period ended June 30, 2021, the effect of dilutive ordinary shares is related to Company’s outstanding warrants. For the period ended June 30, 2022, share options, convertible loan notes and warrants 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 loss per share was the same. |
Property, plant and equipment
Property, plant and equipment | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Property, plant and equipment | 7. Property, plant and equipment Right-of-use Right-of-use Leasehold Office IT Total £’000 £’000 £’000 £’000 £’000 £’000 Cost or valuation At January 1, 2022 2,903 295 557 173 180 4,108 Additions — — — 7 3 10 Currency translation effects 4 6 — — — 10 At June 30, 2022 2,907 301 557 180 183 4,128 Depreciation and impairment At January 1, 2022 (1,025 ) (231 ) (124 ) (69 ) (129 ) (1,578 ) Impairment (18 ) — — — — (18 ) Depreciation for the period (309 ) (41 ) (47 ) (11 ) (10 ) (418 ) At June 30, 2022 (1,352 ) (272 ) (171 ) (80 ) (139 ) (2,014 ) Net book value At January 1, 2022 1,878 64 433 104 51 2,530 At June 30, 2022 1,555 29 386 100 44 2,114 |
Intangible assets
Intangible assets | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Intangible assets | 8. Intangible assets Acquired Cost £’000 At January 1, 2022 and June 30, 2022 33,005 Accumulated revision to estimated value At January 1, 2022 (8,441 ) Revision to estimated value (448 ) At June 30, 2022 (8,889 ) Net book value At January 1, 2022 24,564 At June 30, 2022 24,116 The present value of the provision for deferred cash consideration relating to the agreement with AstraZeneca was reviewed at June 30, 2022 (see Note 10 million which was recognized 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 (2021: £nil). As the intangible assets remain under development, no amortization charge has been recognized (2021: £nil). |
Issued capital and reserves
Issued capital and reserves | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Issued capital and reserves | 9. Issued capital and reserves Number of Ordinary £’000 Share £’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, 2022 and June 30, 2022 584,908,239 1,755 247,460 Other capital reserves Share- Equity Other Merger Other Total £’000 £’000 £’000 £’000 £’000 £’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, 2022 23,026 32,843 44 40,818 33,104 129,835 Share-based payments expense during the period 2,446 — — — — 2,446 Share option exercise (82 ) — — — — (82 ) Issuance of warrants — — 70 — — 70 At June 30, 2022 25,390 32,843 114 40,818 33,104 132,269 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, 2022 in respect of all share option schemes was £2.4 million (June 30, 2021: £1.8 million). During the six months ended June 30, 2022, the Company granted 3,996,400 market value options over ADS under the Mereo 2019 Equity Incentive Plan to certain executives and other employees. The weighted average fair value of options granted was $1.23 per option . per ADS . certain non-executive per option . per ADS . A total of 353,183 deferred restricted stock units, with a weighted average fair value of $1.12 per restricted stock unit , in February 2022 |
Provisions
Provisions | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Provisions | 10. Provisions June 30, £’000 December 31, £’000 Provision for deferred cash consideration 4,334 4,123 Total 4,334 4,123 Current 2,945 2,803 Non-current 1,389 1,320 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 provision 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 8). |
Convertible loan notes
Convertible loan notes | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Convertible loan notes | 11. Convertible loan notes June 30, December 2022 31, 2021 £’000 £’000 Novartis Loan Note 4,094 3,771 Loan Notes – private placement 11,858 10,613 Total 15,952 14,384 Current 15,952 — Non-current — 14,384 Novartis Loan Note is convertible at a fixed price of £0.265 per ordinary share and bears an 0.174 rate |
Warrant liability
Warrant liability | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Warrant liability | 12. Warrant liability June 30, June 30, At January 1 8,336 50,775 Warrants exercised — (2,400 ) Fair value changes during the period (1,210 ) (14,364 ) At June 30 7,126 34,011 June 30, December 31, £’000 Current 6,904 — Non-current 222 8,336 Total 7,126 8,336 The change in fair value of the warrant liability represents an unrealized gain for the six months ended June 30, 2022 and for the six months ended June 30, 2021. 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 £6.9 million as of June 30, 2022 (£8.0 million as of December 31, 2021). The change in the fair value of £1.1 million was recognized as a gain in the condensed (loss)/ income. In the six months ended June 30, 2022, warrants were exercised. Warrants – bank loan As of June 30, 2022 and December 31, 2021, the former lenders of the Company have warrants outstanding to purchase a total of 1,243,908 ordinary shares at an exercise price of £2.95 per share exercisable until August 2027 exercisable until October 2028. At June 30, 2022, the fair value of these warrants were £0.2 million (December 31, 2021: £0.3 million). The change in the fair value of £0.1 million was recognized as a gain in the condensed (loss)/ income. There were no warrants exercised during the six months ended June 30, 2022. Total outstanding warrants At June 30, 2022, a total of 147,431,351 warrants are outstanding. The warrants outstanding are equivalent to 25% 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: June 30, 2022 December 31, 2021 Expected volatility (%) 116 75 Risk-free interest rate (%) 2.4 0.9 Expected life of share options (years) 1.0 1.5 Market price of ADS($) 1.12 1.60 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, 2022 | |
Text block [abstract] | |
Financial instruments fair value disclosures | 1 3 The Company held the following financial instruments at fair value at June 30, 2022. There are no non-recurring Financial liabilities measured at fair value Fair value Fair value Fair value Warrant liabilities — 222 6,904 Provision for deferred — — 4,334 Total — 222 11,238 There were no transfers between Level 1 and Level 2 during 2022. 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, 2022 4,123 7,995 Settled during the period — — Movement during the period 211 (1,091 ) At June 30, 2022 4,334 6,904 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 Provision for deferred consideration Discounted cash flow WACC 2022: 14% 1% increase/decrease would result in a decrease/increase in fair value by £45,000 WACC 2021: 12% 1% increase/decrease would result in a decrease/increase in fair value by £31,000 Probability of success 2022: 40.6% - 81.2% 10% increase/decrease would result in an increase/decrease in fair value by £0.5 million Probability of success 2021: 40.6% - 81.2% 10% increase/decrease would result in an increase/decrease in fair value by £0.5 million Warrant Liability related to the PIPE Black-Scholes Expected volatility 2022: 116.3% Volatility was estimated by reference to the one year historical volatility of the historical share price of the Company. If the volatility is increased to 149% (six month volatility), the carrying value of the warrants as of June 30, 2022 would increase to Expected volatility 2021: 75.1% In 2021, volatility was estimated by reference to the 1.4 |
Related party disclosures
Related party disclosures | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Related party disclosures | 1 4 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, 2022 (June 30, 2021: 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, 2022 (2021: nil). A total of 78,225 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 ended June 30, 2022 (June 30, 2021: 145,830). As of June 30, 2022 a cash balance of £17,741 was held by the EBT. As of December 31, 2021 a cash balance of £17,866 was held by the EBT. |
Events after reporting period
Events after reporting period | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Events after reporting period | 1 5 On July 8, 2022, the Company issued and allotted 40,020,280 ordinary shares of £0.003 in nominal value in the capital of the Company, equivalent to 8,004,056 ADSs, at an exercise price of £0.174 per ordinary share on conversion of loan notes issued as part of the June 2020 private placement transaction. Following this conversion, the Company ha d On October 18, 2022, the Company announced an updated operating plan, including a targeted reduction in the employee base of up to 40% and a significant reduction in other costs. In connection with the implementation of the operating plan, the Company estimates that it will incur approximately £0.5 million in expenditure, which are expected to primarily relate to employee severance and other termination benefits. The Company expects to recognize substantially all of this expenditure in the fourth quarter of 2022. |
Significant accounting polici_2
Significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Basis of preparation | Basis of preparation The unaudited condensed consolidated financial statements for the six-month period ended June 30, 2022 have been prepared in accordance with International Accounting Standards (IAS) 34, 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, 2021 has been extracted from the Company’s audited financial statements for that year, filed with the SEC on March 31, 2022. 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, 2021 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 by product candidate. 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 going concern basis has been applied in these condensed consolidated financial statements as the Company has adequate resources to meet its liabilities as they fall due for the foreseeable future and at least 12 months from the issuance date of these condensed consolidated financial statements. 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. |
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, 2021. |
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, 2021. |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary Of Earnings Per Share | Six months to 2022 Six months to 2021 Numerator – Basic earnings per share (£’000) (Loss)/profit attributable to equity holders of the parent (19,158 ) 12,088 Denominator – Basic earnings per share Weighted average number of ordinary shares 583,892,445 494,617,344 (Loss)/profit per share – basic (£) (0.03 ) 0.02 Numerator – Diluted earnings per share (£’000): (Loss)/profit attributable to equity holders of the parent (19,158 ) 12,088 Effect of dilutive ordinary shares — (14,363 ) Numerator – Diluted earnings per share (19,158 ) (2,275 ) Denominator – Diluted earnings per share: Number of ordinary shares used for basic earnings per share 583,892,445 494,617,344 Weighted average effect of dilutive ordinary shares — 48,264,422 Weighted average number of diluted ordinary shares outstanding 583,892,445 542,881,766 Loss per share – diluted (£) (0.03 ) (0.00 ) |
Finance income, finance costs_2
Finance income, finance costs and changes in the fair value of financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Finance income | Finance income Six months £’000 Six months £’000 Interest income on short-term deposits 173 1 Total 173 1 |
Summary of Finance Costs | Finance costs Six months £’000 Six months £’000 Interest on convertible loan notes (1,567 ) (1,792 ) Interest on lease liabilities (113 ) (105 ) Discounting of provision for deferred cash consideration (163 ) (72 ) Other (16 ) (18 ) Total (1,859 ) (1,987 ) |
Summary of Changes in the Fair Value of Financial Instruments | Changes in the fair value of financial instruments Six months £’000 Six months £’000 Changes in the fair value of warrants – placement 1,091 14,301 Changes in the fair value of warrants – bank loan 119 62 Total 1,210 14,363 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Property, Plant and Equipment | Right-of-use Right-of-use Leasehold Office IT Total £’000 £’000 £’000 £’000 £’000 £’000 Cost or valuation At January 1, 2022 2,903 295 557 173 180 4,108 Additions — — — 7 3 10 Currency translation effects 4 6 — — — 10 At June 30, 2022 2,907 301 557 180 183 4,128 Depreciation and impairment At January 1, 2022 (1,025 ) (231 ) (124 ) (69 ) (129 ) (1,578 ) Impairment (18 ) — — — — (18 ) Depreciation for the period (309 ) (41 ) (47 ) (11 ) (10 ) (418 ) At June 30, 2022 (1,352 ) (272 ) (171 ) (80 ) (139 ) (2,014 ) Net book value At January 1, 2022 1,878 64 433 104 51 2,530 At June 30, 2022 1,555 29 386 100 44 2,114 |
Intangible assets (Tables)
Intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Detailed Information about Intangible Assets | Acquired Cost £’000 At January 1, 2022 and June 30, 2022 33,005 Accumulated revision to estimated value At January 1, 2022 (8,441 ) Revision to estimated value (448 ) At June 30, 2022 (8,889 ) Net book value At January 1, 2022 24,564 At June 30, 2022 24,116 |
Issued capital and reserves (Ta
Issued capital and reserves (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Detailed Information of Ordinary Share Capital | Number of Ordinary £’000 Share £’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, 2022 and June 30, 2022 584,908,239 1,755 247,460 |
Summary of Other Capital Reserves | Other capital reserves Share- Equity Other Merger Other Total £’000 £’000 £’000 £’000 £’000 £’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, 2022 23,026 32,843 44 40,818 33,104 129,835 Share-based payments expense during the period 2,446 — — — — 2,446 Share option exercise (82 ) — — — — (82 ) Issuance of warrants — — 70 — — 70 At June 30, 2022 25,390 32,843 114 40,818 33,104 132,269 |
Provisions (Tables)
Provisions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Provisions | June 30, £’000 December 31, £’000 Provision for deferred cash consideration 4,334 4,123 Total 4,334 4,123 Current 2,945 2,803 Non-current 1,389 1,320 |
Convertible loan notes (Tables)
Convertible loan notes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Interest-bearing Loans and Borrowings | June 30, December 2022 31, 2021 £’000 £’000 Novartis Loan Note 4,094 3,771 Loan Notes – private placement 11,858 10,613 Total 15,952 14,384 Current 15,952 — Non-current — 14,384 |
Warrant liability (Tables)
Warrant liability (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Warrant Liability | June 30, June 30, At January 1 8,336 50,775 Warrants exercised — (2,400 ) Fair value changes during the period (1,210 ) (14,364 ) At June 30 7,126 34,011 June 30, December 31, £’000 Current 6,904 — Non-current 222 8,336 Total 7,126 8,336 |
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: June 30, 2022 December 31, 2021 Expected volatility (%) 116 75 Risk-free interest rate (%) 2.4 0.9 Expected life of share options (years) 1.0 1.5 Market price of ADS($) 1.12 1.60 Model used Black-Scholes Black-Scholes |
Financial instruments fair va_2
Financial instruments fair value disclosures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Fair Value Hierarchy | The Company held the following financial instruments at fair value at June 30, 2022. There are no non-recurring Financial liabilities measured at fair value Fair value Fair value Fair value Warrant liabilities — 222 6,904 Provision for deferred — — 4,334 Total — 222 11,238 |
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, 2022 4,123 7,995 Settled during the period — — Movement during the period 211 (1,091 ) At June 30, 2022 4,334 6,904 |
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 Provision for deferred consideration Discounted cash flow WACC 2022: 14% 1% increase/decrease would result in a decrease/increase in fair value by £45,000 WACC 2021: 12% 1% increase/decrease would result in a decrease/increase in fair value by £31,000 Probability of success 2022: 40.6% - 81.2% 10% increase/decrease would result in an increase/decrease in fair value by £0.5 million Probability of success 2021: 40.6% - 81.2% 10% increase/decrease would result in an increase/decrease in fair value by £0.5 million Warrant Liability related to the PIPE Black-Scholes Expected volatility 2022: 116.3% Volatility was estimated by reference to the one year historical volatility of the historical share price of the Company. If the volatility is increased to 149% (six month volatility), the carrying value of the warrants as of June 30, 2022 would increase to Expected volatility 2021: 75.1% In 2021, volatility was estimated by reference to the 1.4 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - Ultragenyx collaboration agreement [Member] £ in Millions, $ in Millions | 6 Months Ended | |||
Jun. 30, 2022 GBP (£) | Jun. 30, 2021 GBP (£) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 GBP (£) | |
Disclosure Of Revenue From Contracts With Customers [Line Items] | ||||
Upfront Payment Received | £ 36.5 | $ 50 | ||
Milestone payment to ultragenyx collaboration agreement deductions costs | £ 2.4 | |||
Milestone payment to ultragenyx collaboraation agreement deductions costs recognised | 0.4 | 0.9 | ||
Milestone payment to ultragenyx collaboration agreement deductions costs yet to be recogised | £ 0.9 | 1.5 | £ 1.3 | |
Novartis [member] | ||||
Disclosure Of Revenue From Contracts With Customers [Line Items] | ||||
Milestone payment for regulatory and commercial achievements | £ 7.2 | $ 10 |
Finance income, finance costs_3
Finance income, finance costs and changes in the fair value of financial instruments - Summary of Finance income (Detail) - GBP (£) £ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Finance Income Explanatory [Line Items] | ||
Interest income on short-term deposits | £ 173 | £ 1 |
Total | £ 173 | £ 1 |
Finance income, finance costs_4
Finance income, finance costs and changes in the fair value of financial instruments - Summary of Finance Costs (Detail) - GBP (£) £ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of Other Income Expenses And Adjustment [Line Items] | ||
Interest on convertible loan notes | £ (1,567) | £ (1,792) |
Interest on lease liabilities | (113) | (105) |
Discounting of provision for deferred cash consideration | (163) | (72) |
Other | (16) | (18) |
Total | £ (1,859) | £ (1,987) |
Finance income, finance costs_5
Finance income, 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, 2022 | 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 | £ 1,210 | £ 14,363 | |
Placement [Member] | |||
Disclosure of Changes in the fair value of financial instruments [Line Items] | |||
Changes in the fair value of warrants | 1,091 | £ 14,301 | |
Bank Loan [member] | |||
Disclosure of Changes in the fair value of financial instruments [Line Items] | |||
Changes in the fair value of warrants | £ 119 | £ 62 |
Other income and expenses - Add
Other income and expenses - Additional Information (Detail) - 1 months ended Feb. 28, 2022 - Navi License Agreement [Member] - Mile Stone Achievement [Member] £ in Millions, $ in Millions | GBP (£) | USD ($) |
Statement [Line Items] | ||
Upfront Payment Received | £ 1.5 | $ 2 |
Milestone Payment For Regulatory And Commercial Achievements | 0.7 | $ 0.9 |
Other income | £ 0.8 |
Earnings per share - Summary of
Earnings per share - Summary of earning per share (Details) - GBP (£) £ / shares in Units, £ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings per share [line items] | ||
(Loss)/profit attributable to equity holders of the parent | £ (19,158) | £ 12,088 |
Weighted average number of ordinary shares | 583,892,445 | 494,617,344 |
(Loss)/profit per share – basic (£) | £ (0.03) | £ 0.02 |
Effect of dilutive ordinary shares | £ (14,363) | |
Numerator – Diluted earnings per share | £ (19,158) | £ (2,275) |
Number of ordinary shares used for basic earnings per share | 583,892,445 | 494,617,344 |
Weighted average effect of dilutive ordinary shares | 48,264,422 | |
Weighted average number of diluted ordinary shares outstanding | 583,892,445 | 542,881,766 |
Loss per share – diluted (£) | £ (0.03) | £ 0 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) £ in Thousands | 6 Months Ended |
Jun. 30, 2022 GBP (£) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | £ 2,530 |
Ending balance | 2,114 |
Cost or valuation [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 4,108 |
Additions | 10 |
Currency translation effects | 10 |
Ending balance | 4,128 |
Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | (1,578) |
Impairment | (18) |
Depreciation for the period | (418) |
Ending balance | (2,014) |
Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 433 |
Ending balance | 386 |
Leasehold improvements [member] | Cost or valuation [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 557 |
Additions | 0 |
Currency translation effects | 0 |
Ending balance | 557 |
Leasehold improvements [member] | Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | (124) |
Impairment | 0 |
Depreciation for the period | (47) |
Ending balance | (171) |
Office equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 104 |
Ending balance | 100 |
Office equipment [member] | Cost or valuation [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 173 |
Additions | 7 |
Currency translation effects | 0 |
Ending balance | 180 |
Office equipment [member] | Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | (69) |
Impairment | 0 |
Depreciation for the period | (11) |
Ending balance | (80) |
IT equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 51 |
Ending balance | 44 |
IT equipment [member] | Cost or valuation [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 180 |
Additions | 3 |
Currency translation effects | 0 |
Ending balance | 183 |
IT equipment [member] | Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | (129) |
Impairment | 0 |
Depreciation for the period | (10) |
Ending balance | (139) |
Right-of-use asset (building) [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 1,878 |
Ending balance | 1,555 |
Right-of-use asset (building) [member] | Cost or valuation [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 2,903 |
Additions | 0 |
Currency translation effects | 4 |
Ending balance | 2,907 |
Right-of-use asset (building) [member] | Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | (1,025) |
Impairment | (18) |
Depreciation for the period | (309) |
Ending balance | (1,352) |
Right-of-use asset (equipment) [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 64 |
Ending balance | 29 |
Right-of-use asset (equipment) [member] | Cost or valuation [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | 295 |
Additions | 0 |
Currency translation effects | 6 |
Ending balance | 301 |
Right-of-use asset (equipment) [member] | Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Beginning balance | (231) |
Impairment | 0 |
Depreciation for the period | (41) |
Ending balance | £ (272) |
Intangible Assets - Summary of
Intangible Assets - Summary of Detailed Information about Intangible Assets (Detail) £ in Thousands | 6 Months Ended |
Jun. 30, 2022 GBP (£) | |
Disclosure of detailed information about intangible assets [line items] | |
Beginning balance | £ 24,564 |
Ending balance | 24,116 |
Cost or valuation [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Beginning balance | 33,005 |
Depreciation/Amortization and impairment [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Beginning balance | (8,441) |
Revision to estimated value | (448) |
Ending balance | £ (8,889) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of detailed information about intangible assets [line items] | ||
Amortisation charge recognised on intangible assets | £ 0 | £ 0 |
MPH-966 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Change in fair value due to changes in timelines or probability | 0.4 | |
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, 2022 | Jun. 30, 2021 | |
Disclosure of classes of share capital [line items] | ||
Beginning balance | £ 88,002 | £ (14,971) |
Issued during the period | 79,210 | |
Ending balance | 69,585 | 80,681 |
Beginning balance | 247,460 | |
Ending balance | 247,460 | |
Share premium [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | 247,460 | 161,785 |
Issued during the period | 78,609 | |
Ending balance | 247,460 | 240,552 |
Beginning balance | 161,785 | |
Issued for public offering | 79,001 | |
Ending balance | £ 247,460 | 240,552 |
Transaction Costs [Member] | Share premium [member] | ||
Disclosure of classes of share capital [line items] | ||
Transaction costs for issued share capital | £ (234) | |
Ordinary shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Ordinary shares issued and fully paid, Beginning balance | 338,953,141 | |
Issued | 205,557,122 | |
Ordinary shares issued and fully paid, Ending balance | 584,908,239 | 544,510,263 |
Ordinary share capital [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | £ 1,017 | |
Issued during the period | 617 | |
Ending balance | £ 1,755 | £ 1,634 |
Issued Capital and Reserves - A
Issued Capital and Reserves - Additional Information (Detail) £ in Millions | 1 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 shares $ / shares | Jun. 30, 2022 GBP (£) shares yr | Jun. 30, 2022 $ / shares | Jun. 30, 2021 GBP (£) | |
Disclosure of classes of share capital [line items] | ||||
Exercise price, share options granted | £ / shares | $ 1.38 | |||
Share-based payment expenses | £ | £ 2.4 | £ 1.8 | ||
Expected volatility (%) | 96% | |||
Risk-free interest rate | 1.79% | |||
Expected life of share options | yr | 10 | |||
2019 Equity Incentive Plan [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of options granted | shares | 3,996,400 | |||
Share based compensation by share based payment arrangement exercise price per option | 1.39 | |||
Weighted average fair value of options granted | 1.23 | |||
2019 Non-Executive Director Equity Incentive Plan [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of options granted | shares | 507,987 | |||
Share based compensation by share based payment arrangement exercise price per option | 1.24 | |||
Weighted average fair value of options granted | $ 1.12 | $ 1.1 | ||
Number of deferred restricted stock units granted | shares | 353,183 |
Issued Capital and Reserves -_2
Issued Capital and Reserves - Summary of Other Capital Reserves (Detail) - GBP (£) £ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of classes of share capital [line items] | ||
Beginning balance | £ 7,401 | |
Share-based payments expense during the period | 2,446 | £ 1,760 |
Ending balance | 7,401 | |
Capital reserve [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | 129,835 | 128,374 |
Share-based payments expense during the period | 2,446 | 1,760 |
Share-based payments release for exercise of options | (82) | (108) |
Issuance of warrants | 70 | |
Ending balance | 132,269 | 130,026 |
Share-based payments [member] | Capital reserve [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | 23,026 | 19,843 |
Share-based payments expense during the period | 2,446 | 1,760 |
Share-based payments release for exercise of options | (82) | (108) |
Ending balance | 25,390 | 21,495 |
Equity component of convertible loan [member] | Capital reserve [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | 32,843 | 34,565 |
Ending balance | 32,843 | 34,565 |
Other Warrents Issued [Member] | Capital reserve [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | 44 | 44 |
Issuance of warrants | 70 | |
Ending balance | 114 | 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 | 33,104 |
Ending balance | £ 33,104 | £ 33,104 |
Provisions - Summary of Provisi
Provisions - Summary of Provisions (Detail) - GBP (£) £ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure provisions [line items] | ||
Provisions | £ 4,334 | £ 4,123 |
Current | 2,945 | 2,803 |
Non-current | 1,389 | 1,320 |
Provision for deferred cash consideration [member] | ||
Disclosure provisions [line items] | ||
Provisions | £ 4,334 | £ 4,123 |
Convertible loan notes - Summar
Convertible loan notes - Summary of Interest-bearing Loans and Borrowings (Detail) - GBP (£) £ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about borrowings [abstract] | ||
Novartis Loan Note | £ 4,094 | £ 3,771 |
Loan Notes – private placement | 11,858 | 10,613 |
Total | 15,952 | 14,384 |
Current | £ 15,952 | |
Non-current | £ 14,384 |
Convertible loan notes - Additi
Convertible loan notes - Additional Information (Detail) - Novartis [member] | 6 Months Ended |
Jun. 30, 2022 £ / shares | |
Disclosure of detailed information about borrowings [line items] | |
Conversion price per share | £ 0.265 |
Borrowing interest rate | 6% |
Expiry date of warrants | 2023-02 |
June 2020 private placement [member] | |
Disclosure of detailed information about borrowings [line items] | |
Conversion price per share | £ 0.174 |
Borrowing interest rate | 6% |
Expiry date of warrants | 2023-06 |
Warrant Liability - Summary of
Warrant Liability - Summary of Warrant Liability (Detail) - GBP (£) £ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Warrant Liability [Abstract] | |||
Beginning balance | £ 8,336 | £ 50,775 | |
Warrants exercised | (2,400) | ||
Fair value changes during the period | (1,210) | (14,364) | |
Ending balance | 7,126 | 34,011 | |
Current | 6,904 | ||
Non-current | 222 | £ 8,336 | |
Total | £ 7,126 | £ 34,011 | £ 8,336 |
Warrant Liability - Additional
Warrant Liability - Additional Information (Detail) £ / shares in Units, £ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2022 GBP (£) £ / Warrent £ / shares shares | Dec. 31, 2021 GBP (£) £ / shares shares | Jun. 30, 2022 $ / shares | Dec. 31, 2021 $ / shares | Jun. 30, 2021 GBP (£) | Dec. 31, 2020 GBP (£) | Jun. 30, 2020 £ / shares shares | |
Disclosure of classes of share capital [line items] | |||||||
Percentage of ordinary share capital | 25% | ||||||
Warrant liability | £ | £ 7,126 | £ 8,336 | £ 34,011 | £ 50,775 | |||
Fair value of the warrant liability | £ | 6,900 | 8,000 | |||||
Private placement [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Warrants issued | shares | 161,048,366 | ||||||
Fair Value Adjustments Of Warrants | £ | £ 1,100 | ||||||
Exercise price per warrants | £ / shares | £ 0.348 | ||||||
Number of warrants exercised during period | shares | 0 | ||||||
Bank loan [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Fair Value Adjustments Of Warrants | £ | £ 100 | ||||||
Warrant liability | £ | £ 200 | £ 300 | |||||
Bank loan [member] | Warrants Subscribed [Member] | Ordinary shares [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Exercise price per warrants | £ / shares | £ 2.95 | £ 2.95 | |||||
Class of warrant number of securities called by warrants | shares | 1,243,908 | 1,243,908 | |||||
Warrants and rights outstanding term | 2027-08 | 2027-08 | |||||
Bank loan [member] | Two Thousand and Twenty Warrants [Member] | Ordinary shares [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Exercise price per warrants | $ / shares | $ 0.4144 | $ 0.4144 | |||||
Class of warrant number of securities called by warrants | shares | 1,243,908 | 1,243,908 | |||||
Warrants and rights outstanding term | 2028-10 | 2028-10 | |||||
Warrant [Member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Number of warrants outstanding | shares | 147,431,351 | ||||||
Number of warrants exercised | £ / Warrent | 0 |
Warrant Liability - Summary o_2
Warrant Liability - Summary of Weighted Average Inputs to the Models Used for the Fair Value of Warrants Granted (Detail) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [line items] | ||
Expected volatility | 96% | |
Risk-free interest rate | 1.79% | |
Warrant liability [member] | ||
Disclosure of classes of share capital [line items] | ||
Expected volatility | 116% | 75% |
Risk-free interest rate | 2.40% | 0.90% |
Expected life of share options (years) | 1 year | 1 year 6 months |
Market price of ADS($) | $ 1.12 | $ 1.6 |
Model used | Black-Scholes | Black-Scholes |
Financial instruments fair va_3
Financial instruments fair value disclosures - Summary of Fair Value Hierarchy (Detail) £ in Thousands | Jun. 30, 2022 GBP (£) |
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 | £ 222 |
Level 2 of fair value hierarchy [member] | Warrant liability [member] | |
Disclosure of fair value measurement of liabilities [line items] | |
Financial liabilities at fair value | 222 |
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 | 11,238 |
Level 3 of fair value hierarchy [member] | Warrant liability [member] | |
Disclosure of fair value measurement of liabilities [line items] | |
Financial liabilities at fair value | 6,904 |
Level 3 of fair value hierarchy [member] | Provision for deferred cash consideration [member] | |
Disclosure of fair value measurement of liabilities [line items] | |
Financial liabilities at fair value | £ 4,334 |
Financial instruments fair va_4
Financial instruments fair value disclosures - Summary of Changes in Level 3 (Detail) £ in Thousands | 6 Months Ended |
Jun. 30, 2022 GBP (£) | |
Summary of changes in level 3 of fair value of hierarchy [Line Items] | |
Beginning balance | £ 4,123 |
Ending balance | 4,334 |
Provision for deferred cash consideration [member] | |
Summary of changes in level 3 of fair value of hierarchy [Line Items] | |
Beginning balance | 4,123 |
Ending balance | 4,334 |
Level 3 of fair value hierarchy [member] | |
Summary of changes in level 3 of fair value of hierarchy [Line Items] | |
Beginning balance | 7,995 |
Settled during the period | 0 |
Movement during the period | (1,091) |
Ending balance | 6,904 |
Level 3 of fair value hierarchy [member] | Provision for deferred cash consideration [member] | |
Summary of changes in level 3 of fair value of hierarchy [Line Items] | |
Beginning balance | 4,123 |
Movement during the period | 211 |
Ending balance | £ 4,334 |
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 (£) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
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 | 14% | 12% |
Percentage of increase decrease in sensitivity analysis affecting input to fair value | 1% | 1% |
Increase decrease in sensitivity analysis affecting input to fair value | £ 45,000 | £ 31,000 |
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% | 10% |
Increase decrease in sensitivity analysis affecting input to fair value | £ 500,000 | £ 500,000 |
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 | 40.60% | 40.60% |
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 | 81.20% | 81.20% |
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 | 116.30% | 75.10% |
Weighted average [member] | Expected Volatility One [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 | 149% | 67.40% |
Financial liabilities, at fair value | £ 10,200,000 | £ 6,700,000 |
Related Party Disclosures - Add
Related Party Disclosures - Additional Information (Detail) - GBP (£) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Disclosure of transactions between related parties [line items] | |||
Amount paid to trust by the company | £ 0 | £ 0 | |
Shares purchased by the EBT | 0 | 0 | |
Cash held by employee benefit trust | £ 17,741 | £ 17,866 | |
Repayment of debt by Employee benefit trust | £ 45,493 | ||
Ordinary Shares [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Stock Held By Employee Benefit Trust | 78,225 | 145,830 |
Events after reporting period -
Events after reporting period - Additional Information (Detail) £ / shares in Units, £ in Millions | Oct. 18, 2022 GBP (£) | Jul. 08, 2022 $ / shares £ / shares shares |
Announcing Or Commencing Implementation Of Operating Plan [Member] | ||
Statement [Line Items] | ||
Percentage of targeted reduction in the employee base | 40% | |
Estimated expenses related to employee severance and other termination benefits to be incurred | £ | £ 0.5 | |
ADS [Member] | Major ordinary share transactions [member] | ||
Statement [Line Items] | ||
Par value per share | £ / shares | £ 0.003 | |
Number of shares outstanding | 124,918,284 | |
Ordinary shares [member] | Major ordinary share transactions [member] | ||
Statement [Line Items] | ||
Number of shares issued | 40,020,280 | |
Proceeds from issue of ordinary shares | 8,004,056 | |
Share conversion price per share | $ / shares | £ 0.174 |