C4X Discovery : Annual report and accounts 2022

Harnessing the Power

of Drug Discovery

C4X Discovery Holdings PLC

Annual Report and Accounts 2022

By combining cutting-edge Drug Discovery technologies and scientific expertise, C4X Discovery ("C4XD") aims to efficiently develop and deliver world leading medicines with our partners for the benefit of patients.

Strategic Report

Corporate Governance

Highlights	1
What Sets C4XD Apart?	4
Our Business Model	6
Our Discovery Programmes	7
Our Discovery Expertise	8
Our Path to Value	9
Chair's Statement	10
CEO's Statement	12
IL-17A and NRF2 Case Study	14
Porfolio Review	15
Financial Review	18
Principal Risks and Uncertainties	20

Board of Directors	28
Stakeholder Engagement	30
The C4XD Team	31
Q&A with Nick Ray PhD	35
Corporate Governance Statement	36
Audit Committee Report	41
Director's Remuneration Report	42
Directors' Report	45
Statement of Director's Responsibilities	47

Financial Statements

Independent Auditor's Report to the Members
of C4X Discovery Holdings PLC	50
Consolidated Statement of Comprehensive Income	58
Consolidated Statement of Changes in Equity	59
Company Statement of Changes in Equity	60
Statements of Financial Position	61
Cash Flow Statements	62
Notes to the Financial Statements	63
Corporate Information	84

Building on Our Partnered Portfolio

Operational Highlights (including post-period events)

• Post-period:Exclusive worldwide licensing agreement with AstraZeneca in November 2022 for C4XD's NRF2 Activator programme worth up to $402 million including:
• • Pre-clinicalmilestone payments worth up to $16 million including $2 million upfront, ahead of the first clinical trial
  • In addition, a further $385.8 million in potential development, regulatory and commercialisation milestones, and the potential for tiered single-digit royalties
• Progression of Indivior's Phase 1 with C4X_3256 (INDV- 2000) oral Orexin-1 receptor antagonist for the treatment of addiction with commencement of the multiple ascending dose (MAD) study in Q3 2022, under the out-licensing agreement worth up to $294 million, entered into in March 2018
• Achievement of first milestone payment of €3 million from Sanofi under the out-licensing agreement worth up to a total of €414 million for its IL-17A inhibitor programme, entered into in April 2021
• Significant progress in the MALT-1 inhibitor programme for haematological and solid tumours with compounds that match the leading clinical candidate in terms of in vitro and in vivo profile and transitioning of two chemical series into Lead Optimisation
• Significantly more potent compounds in the lead series of the
  α4β7 integrin programme in a human whole blood assay than representative compounds from the leading clinical programme. Progression of C4XD compounds into pharmacodynamic models via oral route of administration

Revenue (£m)

£2.7m

2022£2.7m

2021

£5.6m

2020 £0

Net cash at year end (£m)

£5.1m

2022£5.1m

2021

£17.1m

2020£5.6m

Strategic Report

Highlights

• Commencement of six early-stage programmes (three oncology, three inflammation-immunology) into the Hit Identification phase, with one programme transitioned into the Hit-to-Lead phase
• Research project agreement with HitGen, a Shanghai listed, world leader in DNA-encoded libraries to identify novel, small molecule hits against an inflammatory target
• Appointment of Bhavna Hunjan as Chief Business Officer and Executive Director and Dr Mario Polywka as Non-Executive Director

Financial Highlights

• Revenue of £2.7 million (2021: £5.6m)
• Total loss after tax of £8.2 million or 3.57 pence per share (2021: £3.8m or 1.96 pence per share)
• R&D expenses increased by 14% to £9.4 million (2021: £8.3m), reflecting focused investment in key Drug Discovery programmes
• Net assets of £11.8 million (2021: £19.3m)
• Net cash as at 31 July 2022: £5.1 million (31 July 2021: £17.1m)
• Post-period,successful £5.7 million investor-led fundraise (before expenses) with a total of 22,781,200 Placing Shares issued to institutional shareholders
• Post-period,£2.1 million R&D tax credit received

Loss for the year (£m)

£8.2m

2022	£8.2m
2021	£3.8m
2020	£7.8m

Investment Post-period

£5.7m

C4X Discovery Holdings PLC | Annual Report and Accounts 2022

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Strategic Report

01

Strategic

Report

What Sets C4XD Apart?	4
Our Business Model	6
Our Discovery Programmes	7
Our Discovery Expertise	8
Our Path to Value	9
Chair's Statement	10
CEO's Statement	12
IL-17A and NRF2 Case Study	14
Porfolio Review	15
Financial Review	18
Principal Risks and Uncertainties	20

2 C4X Discovery Holdings PLC | Annual Report and Accounts 2022

Strategic Report

C4X Discovery Holdings PLC | Annual Report and Accounts 2022

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