Aptamer Group PLC Trading Update (4151S)
November 06 2023 - 1:00AM
UK Regulatory
TIDMAPTA
RNS Number : 4151S
Aptamer Group PLC
06 November 2023
6 November 2023
Aptamer Group plc
Trading update
Aptamer Group plc (AIM: APTA), the developer of novel Optimer
(R) binders to enable innovation in the life sciences industry,
announces an update on trading.
Since their appointment on the 21 August 2023, the new
management team has been working tirelessly to meet the targets set
out in the announcement made on 17th August 2023. The management
team continues to focus on enhancing efficiency, identifying growth
opportunities and increasing shareholder value and has made great
strides in driving change, including raising an additional GBP0.3
million which has been ringfenced for R&D activities.
Operations
The team has successfully carried out the planned process
improvements which have streamlined the production processes,
resulting in increased production capacity and reduced material
requirements from customers, helping expand our partnered
development opportunities. Further, the cost-base reductions were
also achieved as planned by the end of September 2023.
Additionally, the Company is proud to have passed the annual
surveillance audit for ISO 9001 accreditation, with 21 positive
observations, indicating the embedded Quality System is performing
well.
Technical
To support the adoption of Optimer technology into new markets,
the research and development team has been specifically focused in
two areas.
Firstly, we have advanced validation of the Optimer-Fc platform,
supporting development of animal-free reagents for the $2.3 billion
immunohistochemistry (IHC) market. The IHC market is a growing
segment of the diagnostics industry in which molecular tools are
used to discriminate between diseased and non-diseased tissues,
such as in pathology.
Secondly, we have made great progress in building a body of data
further supporting our Optimer-based pharmaceuticals for gene
therapy delivery and precision chemotherapy. This opens
opportunities for the specific delivery of chemotherapeutics to
site of action; for example, using these techniques to target
specific tumours could reduce the amount of drug administered and
thereby minimise side effects. We have successfully built the drug
conjugates for oligonucleotide, radionuclide, and chemotherapeutic
delivery, with the results showing selective delivery and gene
knockdown or cell killing, respectively. This work will form the
bedrock of technical data to attract larger pharmaceutical
partners. Results from this work will be disseminated, as
delivered, over the next 12 months.
Commercial
Whilst delivering positive progress in the business since
August, we have also seen the consequences of a lull in customer
confidence in the period leading up to completion of the GBP3.6
million fundraise, which means that the half-year revenue figure to
31 December 2023, will be less than the comparative period in 2022.
However, with revised strategy set out by the new management team
gaining traction with a focus on building and converting the
pipeline, we are completely focused on converting those
opportunities and on achieving market expectations for the full
year.
Under the new management team, and with cash on the balance
sheet, we have seen a significant improvement in customer
confidence. The pipeline of opportunities that are at advanced
stages of discussion currently stands at a healthy GBP3.3 million
across 28 unique projects (subject to commercial and scientific
attrition). Since the completion of the refinancing, we are
encouraged to have added 128 new leads to a growing pool of
opportunities which gives management confidence that significant
orders will be signed before the 2023 calendar year end.
Executive Chairman Steve Hull commented: " I am inspired by how
much progress we have made in such a short time under new
management. We appreciate the support of our staff, customers and
shareholders who are invaluable to us turning the business around.
We are encouraged by the response from customers since the Company
refinanced and we have confidence that the team will be able to
convert a number of existing pipeline opportunities, in addition to
attracting a complement of new customers, to meet market
expectations for the full year. "
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
For further information, please contact:
Aptamer Group plc
Steve Hull +44 (0) 1904 217 404
SPARK Advisory Partners Limited -
Nominated Adviser
Andrew Emmott / Adam Dawes +44 (0) 20 3368 3550
Turner Pope Investments (TPI) Limited
- Broker
James Pope / Andrew Thacker +44 (0) 20 3657 0050
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END
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