Losses at Merrion Pharmaceuticals widened last year as revenue fell, but the company said it had signed a number of new agreements.

The firm recorded a net loss for 2010 of €2.5 million, compared with €1.6 million a year earlier. Revenues fell from €6.3 million in 2009 to almost €4.7 million last year as the company completed some product development work.

Research and development spending was also down, falling to €4.2 million from €4.4 million a year earlier.

However, the company said it had signed a number of feasibility and option agreements in the final months of 2010 which it said "significantly" expanded its partnered pipeline.

These include a collaboration and option agreement and warrant agreement with Novo Nordisk that will see Merrion evaluate the ability of its Gipet technology to boost the oral bio-availability of an undisclosed proprietary compound. The firm also entered into a feasibility and option agreement with Rebel Pharmaceuticals on two undisclosed compounds , and an agreement for three compounds with an unnamed international "top ten" pharmaceutical company.

In November, Merrion finalised a Phase III development programme for Orazol that will compare Orazol against placebo as an adjuvant breast cancer treatment.

"The decrease in revenue compared to the prior year is a result of the completion of product development work for Novo Nordisk," chief executive John Lynch said.

"The additional capacity of our new facility has allowed us to enter three recent agreements to work on six new compounds including one for Novo Nordisk. This is providing Merrion with new revenue sources in 2011."

Davy analyst Aiden O'Donnell said the progress was "encouraging", noting that the company had delivered on many of its targets in 2010.

"The company has now greatly expanded its product portfolio and enters 2011 with the potential for a number of licensing deals to be signed. It expanded its partner portfolio and has further deepened its relationship with Novo Nordisk," Mr O'Donnell said.