5 February 2024
Aptamer Group
Plc
("Aptamer", the "Company" or
the "Group")
Half year Trading
Update
Aptamer Group plc (AIM: APTA), the
developer of novel Optimer® binders to enable innovation in the
life sciences industry, today announces a trading update for the
six months ended 31 December 2023 (H1 24).
Pipeline Opportunities Now Converting into Signed
Deals
Further to completion of the £3.6
million fundraise ("Fundraise") and Board changes announced on 17
August 2023, along with the follow-on £0.3 million Placing and
Subscription of 19 September 2023, confidence in the Board's new
strategy continues to rise. Substantial progress has been
registered with the building of a relatively long lead-time
pipeline of opportunities, which have now started to convert into
signed deals.
As detailed in the trading update
released on 6 November 2023, a lull in customer confidence and
limited availability of working capital in the lead-up to
completion of the Fundraise, meant that the Company's half-year
revenue figure to 31 December 2023 would be less than the
comparative period (H1 FY23). Revenue for H1 FY24 is now
anticipated to come in at approximately £0.3 million (H1 FY23: £1.0
million).
The recent announcement of a
material agreement with a genetic medicines company for £0.5
million contributed to over £0.8 million of deals being signed in
December 2023, which culminates in over £1.4 million of signed
deals either being or to be processed through the laboratory. Since
August 2023's change in management, negotiations across a pipeline
of opportunities with total contract values between £2.0 million in
medium-term deals and £8.0 million including longer-term deals
remain ongoing. Approximately £1.5 million of the medium-term deals
are considered advanced stage and there are a further two
longer-term opportunities of approximately £6 million with large
pharmaceutical companies that the Company hopes will crystalise
into ongoing strategic relationships.
The Company expects to progress the
£1.4m of signed work and a proportion of the additional £1.5m of
advanced stage sales pipeline through the laboratory before the end
of the financial year, subject to target material being delivered
by customers in a timely manner and scientific attrition.
Accordingly, the Company expects to deliver less than market
expectations, in terms of fee-for-service revenue, for the full
year.
In January 2024, HMRC accepted
Aptamer's R&D tax credit claim for £0.5 million. Following
receipt of these funds the month end cash balance for January was
£2.1 million. Having completed the reduction in its ongoing cost
base in September 2023, the Board considers this sufficient to
provide a runway well into FY25.
Strong Technical Progress Developing Binders for Gene Therapy
and Immunohistochemistry Markets
The research and development team
has continued with their focus on two specific areas, being:
Optimer-based pharmaceuticals for gene therapy delivery and
precision chemotherapy and the Optimer-Fc platform for the
immunohistochemistry ("IHC") market, for which an additional £0.3
million was raised in September 2023.
Firstly, as already announced,
Aptamer has successfully developed drug conjugates that form the
basis of delivery vehicles for gene therapies, radionuclides, and
chemotherapeutic medicines. Recent results from a gene therapy
delivery partnership, with a top 15 pharmaceutical company, have
yielded data showing selective delivery and gene knockdown, leading
to a request from our partner for the manufacturing of Optimer
material for their own internal validation,
with a view to licensing, if successful. The product can be
tailored for the delivery of multiple gene therapy or
chemotherapeutic conjugates, with a potential to form a series of
novel pharmaceutical entities.
Secondly, the development of the
Optimer-Fc platform for IHC has led to the first commercial
contract in this field, signed in December 2023, and valued at up
to £147,500. Strong progress in discovery and validation has
continued, delivering new binders that demonstrate the performance
of the Optimer-Fc platform. Developed binders for IHC are now
undergoing external validation by a top 5 pharma company, with
initial results reported as promising and leading to a commercial
request for more material. A patent application covering this
platform has now been submitted.
These two specific development
areas, incorporating both diagnostic and pharmaceutical
applications, underpin the Company's new growth strategy; to foster
larger ongoing fee-for-service contract work with preferred
partners, thus pursuing a stable revenue stream, whilst developing
both partnership-ready diagnostic and drug-delivery platforms, and
wholly owned pharmaceutical candidates to target specific therapy
areas.
Executive Chairman Steve Hull commented:
"I am encouraged by the progress that has been
made since the Company was recapitalised in August 2023. In a short
period of time, the Company has substantially resized its cost base
and developed a significant new pipeline of opportunities that have
started to convert into signed deals that are now progressing
through the laboratory. We have also made strong technical progress
in developing binders for gene therapy delivery and IHC. Both
technologies are now being pursued by named pharmaceutical
companies. We are grateful for the support shown by staff,
customers, and shareholders in helping the Company lay strong
foundations in the first half of this financial year. Management
recognises that meeting market expectations for the full year is
unlikely, but might be possible if we can convert the advanced
pipeline and deliver current work in progress successfully. We are
fully committed to converting the pipeline of existing and new
opportunities to achieve sustainable revenue levels, whilst being
excited by the potential of our Optimer technologies to deliver
commercial milestone and licensing deals."
THIS
ANNOUNCEMENT CONTAINS INSIDE INFORMATION
For further information, please
contact:
Aptamer Group Plc
+44 (0) 1904 217 404
Steve Hull
SPARK Advisory Partner Limited - Nominated Advisor
+44 (0) 20 3368 3550
Andrew Emmott / Adam Dawes
Turner Pope Investments (TPI) Limited -
Broker
+44 (0) 20 3657 0050
James Pope / Andrew
Thacker