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4D Pharma shares drop as it falls to huge loss, warns it will need to raise money later this year

The drug developer had £26.2mln of cash in the bank at the turn of the year, almost half the level that it had at the end of 2017
businessman asking for money
4D Pharma's bosses reckon they have enough money to last them into the fourth quarter

Shares in 4D Pharma PLC (LON:DDDD) dropped on Tuesday as the drug developer warned it will have to tap the market for some more money within the next few months.

The AIM-listed company fell to a £24.3mln loss in 2018, after a loss of £19.4mln in 2017, as it moves its portfolio of cancer, irritable bowel syndrome and respiratory drugs through the clinic.

READ: 4D Pharma unaware of any reason for recent share price fall

That left it with £26.2mln of cash in the bank, almost half the amount it ended 2017 with at £50.0mln.

Bosses reckon that is enough to take 4D into the fourth quarter of this year, after which it will have to raise more money from somewhere.

“The directors are continuing to explore sources of finance available to the group and have a reasonable expectation that they will be able to secure sufficient cash inflows into the group to continue its activities for not less than twelve months from the date of approval of these accounts,” the group said.

4D Pharma shares fell 7.7% on Tuesday morning to 97.9p.

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