UK-based pharmaceutical company Icanthera said its cash reserves soared over the last year as it has struck a major deal and is focusing on developing new products.
The company that manufactures dermatology and oncology treatments said its cash position increased to £61,000 at 31 March 2024, up from £3,000 in the previous year. Icanthera said it comes as “tight cost controls remain across a lean business model”.
Icanthera has a commercial partnership with Marionnaud, part of the AS Watson Group, which has a retail store capacity of 16,500 stores across Europe and Asia.
The deal, struck in December last year, is expected to transform the business to one with “significant revenues and profits, generating free cash flow,” Icanthera said at the time.
Icanthera is building a high-end skincare range of five products through the partnership, to be launched in Europe in September 2024. It will direct newly-raised funds towards inventory build-up in preparation for the product debut.
In an investment round of £1.1m last year, the company generated total gross proceeds of £825k. An institutional-led fundraise in June 2024 along with shareholder and broker warrants raised a total of £3.3m.
AS Watson, which is incorporated in the Cayman Islands and is based in Hong Kong, owns health and beauty brands including Superdrug and Savers.
Simon Ward, chief executive officer, said: “This is the year in which we have delivered our promise of a successful commercial deal, that will launch our world-class products onto an international stage at the very highest level.
“We have completed a deal that pays homage to our excellent in-house formulation team, to the strength of skills shown in our small but impassioned management team, and the drive and huge momentum gained through our City and corporate facing communications to consistently engage with our many long standing loyal shareholders, and attract new retail and institutional City investors,” Ward added.