- Specialist drug developer Sareum said it expected to post a narrower annual loss after it cut costs.

Net losses from ordinary activities for the year through June were expected at £0.96m, compared to a loss of £1.45m on-year.

The company had also received an R&D tax credit in January of £0.23m.

Sareum said it was continuing to advance its immunotherapy candidates, targeting autoimmune diseases and cancers.

It was also investigating the potential for use of its TYK2/JAK1 inhibitors to address the severe inflammatory responses and potentially fatal respiratory symptoms of Covid-19.

'The past year has seen Sareum advance the preclinical development of our proprietary dual TYK2/JAK1 inhibitor programmes, with the goal of completing preclinical development of at least one candidate by the end of 2020,' chief executive Tim Mitchell said.

'We are particularly pleased to have raised additional funding during the period, which will be deployed to advance these programmes towards clinical development and build a robust data package to support our ongoing partnering activities for these exciting and differentiated assets.'

'We were pleased to sign a global licensing deal for our FLT3+Aurora inhibitor programme targeting blood cancers with a China-based specialty pharma company during the period.'

'Sareum is potentially eligible to receive a success-dependent milestone payment during Q1 2021 from this agreement, as well as future revenues pending successful progress.'

'We continue to monitor Sierra's activities as it explores options to fund the future development of SRA737 and we will provide further updates on this and other programmes when appropriate.'

At 8:01am: [LON:SAR] Sareum Holdings PLC share price was +0.03p at 0.93p

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