Aptamer Group
plc
("Aptamer", the "Company" or
the "Group")
Interim
results for the six months ended 31 December 2023
Fundraising complete, R&D
development progress and cost base reset
Aptamer Group plc (AIM: APTA),
the developer of novel Optimer® binders to enable
innovation in the life sciences industry, today announces its unaudited
interim results for the six months ended 31 December
2023.
Financial highlights (H1
2023)
· Revenue £0.3 million (H1 2023: £1.0 million)
· Cash
balance at 31 December 2023 of £1.8 million (H1 2023: £1.9
million)
· Adjusted EBITDA loss of £1.8 million (H1 2023: £2.5
million)
· Recapitalised with £3.5 million in two equity
placings.
·
Completed the reset of the
fixed cost base to £3.5 million per annum in September 2023, whilst
maintaining the ability to win sales and deliver
projects.
Operational
highlights
· Follow-on deal with a US-based vaccine development company to
develop Optimer® binders as QC reagents was signed in
July.
· Refreshed Board in August with pre-IPO Chairman and
co-founder returning to support and direct the team to revenue
generation & technical delivery.
· Contracts agreed in August with a top five pharmaceutical
company to develop multiple Optimer® binders for
different applications across both pipeline assets and early
discovery targets.
· Process improvements have been successfully trialled and
implemented across the platform in October to support lower sample
requirements, increase capacity and improve project
margins.
· Developed broader portfolio of post-development validation
assays to increase revenue and improve translation into functional
products.
· Agreement in December to the value of up to approximately
£0.6 million with a genetic medicines company for
Optimer® targeting of genetic medicines to specific cell
types.
· Contract signed in December with a US-based biotechnology
company for Optimer®-Fc reagent development to new
targets.
Post-period
highlights
· Developed binders for a top five pharma company undergoing
external validation for IHC, with initial results reported as
promising and leading to a commercial request for more material in
January.
· Entered the second phase of development with Neuro-Bio in
February, to deliver additional Optimer® binders to
support Alzheimer's lateral flow test development.
· Technical progress to date in developing the new affinity
ligand platform, Optimer®+, was made in February,
highlighting the improved results compared to the current
Optimer® platform, and good tolerance in animal studies,
demonstrating its potential for use in therapeutics.
· In
February, results from a gene therapy delivery partnership with a
top 15 pharmaceutical company, have led to their request to
validate the material in their own labs. This material is currently
being manufactured at Aptamer Group for shipment.
· Partnership with Unilever announced in March, following
successful testing of developed Optimer® binders by
Unilever to support novel applications in fast moving consumer
goods, with patent applications for the binders now being
prepared.
Commenting on the interim results, Stephen Hull, Chairman of
Aptamer Group, said: "The strong
technical delivery in the first half of the year, includes the new
demonstration of binder performance in gene therapy delivery and
IHC, and we are pleased that large pharmaceutical company partners
have shown significant interest in binders developed for both of
these applications. The data generated in these key focus areas is
supporting ongoing marketing activities, and the developed
expertise at Aptamer Group is being applied to customer projects to
support improved protocols and faster adoption of our
Optimer® technology. Additionally, our new affinity
ligand platform, Optimer®+, has been further developed
with results showing excellent performance and its viability for
therapeutic use from initial animal studies.
Positive validation of
Optimer® performance both in-house from our own
scientific team and from external partners has resulted in interest
in the licensing of current assets, which remains part of our
strategy, particularly within the key focus areas of drug delivery
and IHC, where we have identified a specific market need that
Optimer® and our new Optimer®-Fc platform are
well placed to address.
The Group has continued to make
encouraging progress since recapitalising in August, rebuilding the
pipeline of sales opportunities and reinvigorating operations
through the laboratory. We are seeing increasing conversion
of the deal pipeline, including repeat business being won and the
potential for large deals in the drug delivery space."
Webinar
Dr Arron Tolley (Chief Technical
Officer), Dr David Bunka (Chief Scientific Officer) and Andrew
Rapson (Chief Financial Officer) will provide a live presentation
relating to the Interim Results via Investor Meet Company on 28
March 2024, 15:00 GMT.
The live presentation is open to
all existing and potential shareholders. Questions can be submitted
pre-event via your Investor Meet Company dashboard up until 27
March 2024, 09:00 GMT, or at any time during the live
presentation.
Investors can sign up to Investor
Meet Company for free and add to meet Aptamer Group Plc
via:
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Investors who already follow
Aptamer Group Plc on the Investor Meet Company platform will
automatically be invited.
- End -
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 - Broker
James Pope / Andrew Thacker
+44
(0) 20 3657 0050
About Aptamer Group plc
Aptamer Group develops custom affinity binders through its proprietary
Optimer® platform to
enable new approaches in therapeutics, diagnostics, and research
applications. The Company strives to deliver transformational
solutions that meet the needs of life science researchers and
developers.
Optimer® binders are
oligonucleotide affinity ligands that can function as an antibody
alternative. The global affinity ligand market is currently worth
over $170 billion.
Aptamer has successfully delivered
projects for a range of global pharma companies, diagnostic
development companies, and research institutes, covering multiple
application areas with the objective of establishing
royalty-bearing licenses.
Chairman's
Statement
Aptamer Group has signed contracts
with a number of new and repeat customers, including major
pharmaceutical companies, in the first half of the year. Following
the recapitalising of the business in August 2023, the new
management team has worked hard to implement its strategy and
rebuild customer confidence, whilst demonstrating the performance
of the technology platform through increased delivery of technical
data. Despite first half revenues below previous market
expectations, £0.8 million of deals were signed in December 2023
contributing to a signed deals pipeline today of £1.3 million,
which are at various stages of being progressed through the
laboratory to recognise as revenue.
With a focus on remaining at the
forefront of aptamer technology, the initial demonstration of our
proprietary Optimer®+ platform has yielded positive
results, particularly for its application in the therapeutic space.
In addition, we continue to see particular interest for our current
binders in drug delivery, where there is a recognised market need
for new delivery mechanisms to support targeting drugs to different
tissues. We aim to continue to build the required data and binders
to meet the needs of this sector and increase penetration into the
high value therapeutics market.
Divisional Performance
Aptamer Solutions
Aptamer Solutions provides custom
services for the development of oligonucleotide-based aptamer and
Optimer® binders for use as research tools, quality
control reagents and affinity ligands to support bioprocessing
applications.
Since the Company was recapitalised
in August 2023, several deals have been signed with partners that
require Optimer® development to enable improved assay
solutions for discovery and pipeline assets. In addition to
supporting customers with new projects where antibodies have proven
intractable, we are also seeing a number of returning customers,
demonstrating the performance of the platform.
Two new projects were initiated
with a top five pharmaceutical partner, to develop
Optimer® binders for use in research assays and
immunohistochemistry (IHC). This builds on
the adoption of our Optimer®-Fc platform for use in
automated IHC workflows. These contracts represent repeat custom,
with over ten contracts now signed with this pharma partner,
signifying the increasing confidence in Optimer®
technology and keenness to adopt this within major life science
companies.
Within the first half of the year,
further repeat business was seen with a follow-on contract signed
with a US-based vaccine development company. Following initial positive results in an earlier project, the
partner sought further Optimer® development to viral
targets as critical reagents for their QC assays.
Following the launch of the
Optimer®-Fc platform to support new reagent solutions
for IHC in the second half of FY23, the first half of this
financial year saw the initial contract signed for
Optimer®-Fc development. The developed
Optimer®-Fc is intended as a critical reagent to support
patient stratification for clinical trials. This agreement is with
a US-based oncology-focused biotechnology company, with the
potential for further licensing on success.
Aptamer established a new
partnership with a US-based gene therapy company for the
development of Optimer® binders to key biomarkers in
neurodegenerative disease. The Optimer®
binders will be used with an antibody in a
sandwich pair format to advance neuroscience disease
research where alternative affinity
ligands have previously failed to deliver the required
performance.
In the bioprocessing field, the
Company signed a new deal with a top ten pharmaceutical company to
develop Optimer® binders as affinity ligands to support
the downstream bioprocessing of advanced therapy medicinal
products. The binders will be used to streamline the manufacturing
process and offer enhanced purification of the product, solutions
for which are not currently available within the market.
During the period, progress in
validating Optimer® binders developed for Unilever has
been positive. External validation of the Optimer®
binders by Unilever has been successful and, post period, Aptamer
and Unilever are now working to patent these binders for use in
novel fast moving consumer goods applications.
Post period end, the Company
announced that Optimer® binders previously developed for
a top five pharmaceutical company have shown promising results in
the partner's own IHC validation studies. Validation studies are
ongoing with this partner and may result in a license.
As the need for novel biomarkers
for new diseases continues to grow and novel therapeutics are
progressing through the clinic; our partners are increasingly
investigating Optimer® technology to meet their
increasing need for affinity ligands that can support these new
targets, many of which have proven intractable with alternative
technologies. Delivering benefits of ethical compliance, rapid
development to meet tight timelines, and both cost-efficiencies and
security in supply; Optimer® binders are offering
much-needed innovation to enable new research and bioprocessing
solutions.
Aptamer Diagnostics
Aptamer Diagnostics focuses on the
development and integration of Optimer® binders into
diagnostic platforms. Optimer® binders offer significant
advantages, including the detection of novel diagnostic targets,
increased stability and batch-to-batch consistency. Our platform
supports multiple diagnostic formats, such as Enzyme-Linked
Immunosorbent Assay (ELISA), flow cytometry, biosensors and cell
and tissue imaging.
Aptamer continues to work with a
range of companies to support diagnostic development with
Optimer® binders. Post period, the Company entered the
second phase of development with the UK-based biotechnology company
Neuro-Bio Ltd. Following success in the first development phase
delivering Optimer® binders to Neuro-Bio's biomarker for
Alzheimer's disease, Aptamer has agreed the development of
additional binders to form an Optimer® pair that will
enable a wholly Optimer®-based lateral flow test for the
early diagnosis of Alzheimer's disease.
As the global need for diagnostics
continues to grow, Optimer® binders are being
explored by our partners across the diagnostic industry for a range
of applications. Their excellent target recognition, consistent and
ethical supply, temperature stability and batch reproducibility,
enable simple global logistics and position our Optimer®-based tests as an
antibody alternative for use in diagnostics.
Aptamer Therapeutics
Aptamer Therapeutics delivers
contract research services in the field of therapeutics, using
our Optimer® platform to develop binders for use as Optimer®-drug
conjugates, Optimer®-enabled gene
therapies, and Optimer®
agonists and antagonists for therapeutic
application.
Within the Aptamer Therapeutics
business, a material contract was signed with a genetic medicines
company for the development of Optimer® binders to
enable the targeted gene therapy delivery to specific cell types.
The deal comprises up to approximately £0.6 million in development
fees with the potential for further licensing upon successful
demonstration of the binders.
Post period end, Aptamer announced
that Optimer® binders developed for a top 15
pharmaceutical company to enable gene therapy delivery, have
demonstrated selective delivery and gene knockdown in our own
lab-based experiments. Based upon the
inhouse results of these binders, the pharmaceutical partner has
requested the material for their own validation, with a view to
licensing the molecule if successful.
Targeted delivery of therapeutic
payloads remains a significant challenge, particularly within the
emerging field of gene therapy. Optimer® binders have a
significant advantage as small, oligonucleotide-based molecules
offer a novel solution for our partners to overcome some of the
challenges faced in the delivery of diverse payloads from gene
therapies to targeted radiotherapy. Optimer® advantages
include increased tissue penetration, low immunogenicity, and the
potential for convenient manufacture as contiguous molecules or
site-directed conjugation for simpler analysis of critical
therapeutic attributes.
Operational progress
As part of the Company's strategy
set by the newly appointed Board during the period, Aptamer Group
is focused on increasing commercial traction to drive high impact
partnerships and delivering process improvements through the
current Optimer® platform, while maintaining a tight
cost discipline. A summary of our delivery against each of these
three areas is provided below:
1. To achieve EBITDA and cash break-even
position
Following the recapitalisation of
the Company and appointment of the new Board in August, the Company
set challenging targets to reach EBITDA and cash break-even within
two years. This remains the Board's aim. The new Board and strategy
to deliver process improvements and marketing data are now helping
to produce a qualified pipeline of opportunities that are evidence
of tangible progress towards that target.
A reset of Aptamer's cost base was
completed by 30 September, 2023. This included the reduction of
previously budgeted costs for premises, overheads and development,
directors and staff, from approximately £6.4 million in the year
ended 30 June 2023, to approximately £3.5 million for the current
financial year. As part of this process, there was a reduction in
operational headcount to the level required to meet forecasted
revenues, where the top performers were retained and incentivised,
and a reduction in the Company's operational footprint. This reset
of the cost base, along with continued tight cost discipline, is
intended to support the move towards a positive cash flow position
over the next two years.
2. To implement platform process improvements and
generate marketing data
Improving the Optimer®
platform processes allow increased margins and enables improved
services for customers. The first wave of process improvements has
been completed and integrated into the platform, streamlining
production for increased capacity and reduced customer material
requirements. Further process improvements are ongoing to reduce
development timelines and improve success rates, with new updates
being trialed prior to implementation within the platform. The
Group anticipates that this work will be completed by June
2024.
Additionally, a range of
post-development validation assays have been added to the Group's
service offering. This broader range of functional assays
enables demonstration of the performance of Optimer®
binders in the same end use applications that partners wish to
adopt. Validation and assay development services offer additional
revenue from fee-for-service projects and support faster
translation of the technology to the Company's partners, whilst
also delivering high quality data to support marketing
activities.
Data generation for marketing
purposes evidences the applications of the Optimer®
platform to increase technology adoption. Data generation has
focused on two specific areas: Optimer®-based
pharmaceuticals for gene therapy delivery and precision
chemotherapy and the Optimer®-Fc platform for the
immunohistochemistry (IHC) market.
Lab-based experiments at Aptamer
Group using developed Optimer® binders for gene therapy
delivery have shown selective delivery and gene knockdown. This
data was recently presented at the Biologics UK conference and has
also resulted in a request from a top 15 pharmaceutical partner to
trial the Optimer® within their laboratories, with a
view to licensing, if successful. This Optimer® can be
tailored for the delivery of multiple gene therapy or
chemotherapeutic conjugates, with the potential to form a series of
novel pharmaceutical entities. Further validation work is
continuing in-house to increase this data pack and support the
commercial licensing of this product.
The development of our novel
Optimer®-Fc platform for IHC applications uses
custom-developed target-specific Optimer® binders
conjugated to an antibody Fc portion. This 'plug-and-play' affinity
toolkit could allow the simple integration of Optimer®
binders into existing commercial automated IHC workflows to support
improved processes for current targets and enable the development
of novel biomarkers in automated IHC applications. The progress
made in validating this platform resulted in the first commercial
contract for Optimer®-Fc tools being signed in December
2023, valued at up to £147,500. A patent application protecting
this platform has now been submitted. Additional IHC validation of
a broader panel of Optimer® binders and the
Optimer®-Fc reagents is continuing in-house and is
anticipated to be completed by July 2024, providing complete data
packs and technical know-how for marketing in this
field.
3. To increase commercial traction and broaden the
market for our technology
The new strategy for the delivery
of improved validatory data in the focus areas of targeted drug
delivery and IHC has supported increased commercial traction since
the beginning of the period. We anticipate this progress will
continue, allowing the core fee-for-service offering to expand and
act as a horizon-scanning platform for future license fee
opportunities while the Group moves toward
profitability.
In the first half, a material
agreement was signed with a genetic medicines company for targeted
drug delivery at the value of up to £0.6 million, contributing to
over £1.3 million of signed deals currently being processed or
awaiting processing through the laboratory. The Company expects to
progress the £1.3 million of signed work and a proportion of an
additional £2.9 million of contracts in advanced-stage negotiations
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.
A continued focus on licensing the
Optimer® technology has resulted in the emergence of a
number of potential opportunities within the current pipeline post
period end. While management is aware of the long timeframes
associated with reaching and securing licensing agreements, earlier
projects are starting to come to fruition and may contribute to
revenue over the next two years. An ongoing partnership with a top
15 pharmaceutical company for gene therapy delivery has resulted in
their request to validate the developed binders in their own
laboratories, with a view to licensing if successful. Additionally,
a top five pharma partner is currently evaluating developed
Optimer® binders for IHC, with initial results reported
as promising. Finally, the current partnership with a Unilever for
binders to support novel applications in fast moving consumer goods
is progressing to patenting following positive results at Aptamer
Group and Unilever's labs. This will allow the next stage of
commercial advancements with our partner.
The increasing commercial traction
developed over the first half of the year demonstrates that there
is a continued demand for Optimer® binders across the
life sciences, with traction in the drug delivery space, where high
value and high impact contracts can be targeted. As we progress the
partnership in the fast-moving consumer goods space, we aim to
translate this potential of Optimer® technology into
additional markets for a broader market penetrance. To support
increased commercial traction new marketing materials and a new
Company website are under development, which are expected to launch
this year.
R&D developments
Following the Fundraise in August
2023, £0.3 million was ringfenced to support R&D activities
within the Company. These funds have been put to good use, with
strong developments in demonstrating Optimer® delivery
of functional gene therapies, validation of Optimer®
binders and the Optimer®-Fc platform in IHC, and the
progression of our novel affinity ligand platform,
Optimer®+.
Results generated for
Optimer® drug delivery and IHC during the first half of
the year have been used to support marketing activities. Ongoing
R&D activities in these areas will bolster the available
evidence to support increased adoption whilst further increasing
the team's technical knowledge in these fields. The developed
in-house expertise in drug delivery and IHC applications can be
applied to customer specific projects to support with improved
protocols and allow faster adoption of the Optimer®
technology within customer labs for improved downstream
success.
Work to develop the novel
Optimer®+ platform has resulted in the demonstration of
the new affinity ligands as possessing improved performance and
development times compared to the current platform, as well as
being stable and well tolerated in mice, indicating the basic
requirements for therapeutic use. Optimer®+ uses a modified
oligonucleotide library that creates
hybrid Optimer®-peptide binders
engineered with a scaffold structure that bridge the gap between
traditional aptamers and protein-based affinity ligands and occupy
a niche between large biologics and small molecule drugs.
Development of the new platform is ongoing at Aptamer Group,
alongside discussions with partners to scale manufacturing
processes. The new platform is expected to launch to the market in
FY25.
Board and Senior Management Changes
During the first half, the Board
was restructured to include Stephen Hull returning to the Company
as Executive Chairman after leading the Group to flotation in 2021
with Dr Arron Tolley. Dr Tolley returned as Chief Technical
Officer, while Dr David Bunka moved to Chief Scientific Officer to
concentrate on research and development activities for the Group.
Dean Fielding and Dr Adam Hargreaves joined the Company as new
Independent Non-Executive Directors. Dean Fielding is an
experienced senior company director with extensive prior
involvement as a board member of listed companies. Dr Adam
Hargreaves is a board-certified pathologist who brings a broad
range of expertise in both diagnostics and early-stage
pharmaceutical efficacy and safety development to support Aptamer's
technical strategy. The Company intends to appoint a Chief
Executive Officer when appropriate to do so.
Andrew Rapson, the previous Head of
Finance, was promoted to Chief Financial Officer and Company
Secretary, and Alastair Fleming remains as Chief Operating
Officer.
The previous Board members, Dr Ian
Gilham (Executive Chairman), Dr Rob Quinn (Interim Chief Executive
Officer and Chief Financial Officer), Dr John Richards
(Non-Executive Director) and Angela Hildreth (Non-Executive
Director), resigned on 21 August 2023. We thank them for their
service over the prior 20 months.
Macro environment
The Board and senior management
team continue to monitor risk factors that could affect the
business. These risks include the wider macroeconomic environment
and global supply chain, with the management team actively working
to ensure that the business is well placed to act on and mitigate
such risks where possible.
In FY23, the reduction in available
investment and tighter budgeting across the life science industry
impacted the Group's pipeline conversion numbers as clients, from
top pharma companies to small biotech companies, had reduced
available budgets for R&D outsourcing. Additionally, many of
our partners' projects stalled, and licensing revenue was slower to
achieve than anticipated. The new Board has responded to this by
resetting Company targets during the period and moving focus to
fee-for-service revenue, with product licensing removed from the
revenue forecast until clearer timelines are available.
Summary and outlook
Since the Fundraise in August 2023
and reset of Company management, strategy and cost base there has
been significant progress against targets within Aptamer Group,
with strong technical delivery leading to growing commercial
traction.
The pipeline of opportunities has
now been rebuilt and is beginning to convert to sales, with
sustained momentum expected into the second half of the financial
year. We continue to see interest in our technology platform from
across the life science field, indicating a clear demand for
antibody alternatives, with increasing repeat business from
partners including major pharmaceutical companies.
To support the identified
opportunities for the Optimer® platform, the board has
focused on the generation of validatory data, making excellent
technical progress during the period within the focus areas of drug
delivery and IHC. This is now supporting marketing activities to
strengthen the opportunity pipeline. Additionally, the observed
traction with developed Optimer® binders undergoing
evaluation at partner companies indicates the capabilities of the
platform with the potential to capitalise on subsequent downstream
licensing revenues that will drive long term profitability for
Aptamer.
The Company has made excellent
technical progress with the new Optimer®+ programme and expects this
platform to expand the capability of its binders in all
applications, especially in precision medicine. The technology is
fully protected with a portfolio of
granted patents, ensuring the Company
retains exclusive rights for all uses of the new system.
Evaluation processes are ongoing within the
Company and with external partners to optimise the development and
large-scale manufacturing protocols, with an active marketing
strategy to follow.
Financial review
Revenue
Revenue for the six months ended 31
December 2023 was £0.3 million (H1 2022: £1.0 million) following a
lull in customer confidence and limited availability of working
capital in the lead up to the completion of a fundraise in August
2023. Revenues for the full year are anticipated to be second
half weighted following the signing of £0.8 million of orders in
December 2023. These orders, together with previously signed orders
where we are awaiting customer material to be delivered to us, will
contribute to revenue in the second half of this financial
year.
Gross loss/profit
Gross profit for the first half of
the financial year was £nil (2022: £0.5 million) as a result of low
revenue. There is limited variability in the staff costs contained
within cost of sales at these levels of revenue, which has resulted
in the erosion of gross margin. Otherwise, material costs
remain variable with the level of revenue.
Administrative expenses
Administrative expenses were £1.7
million for the first six months of the year compared to £3.0
million for the same period last year. This decrease in costs
follows the resetting of the cost base which was completed in
September 2023. Headcount reduced from 46 at 30 June 2023 to
37 at 31 December 2023.
Research and development costs
During the first half of the
financial year the Group expensed £0.2 million (H1 2023: £0.4
million) within Administrative Expenses on research and development
costs related to the Optimer-Fc platform for immunohistochemistry
(IHC), building a body of data for Optimer-based gene therapy and
precision chemotherapy, and process improvements to streamline the
production process.
Adjusted EBITDA
Adjusted EBITDA was a loss of £1.8
million for the six months ended 31 December 2023 (H1 2023: £2.5
million). The decrease in loss mainly results from a reduction in
administrative expenses.
Tax
The Group claims research and
development tax credits. Since it is loss making, the Group elects
to surrender these tax credits for a cash rebate. The benefit to
the Group is included within the taxation line of the income
statement and amounts to £0.1 million for the first half of the
year. Within current assets is a corporation tax debtor of £0.6
million, which relates to anticipated R&D tax credits in
respect of claims not yet received / submitted for the 2023 and
2024 financial years. The claim for the year to 30 June 2023
amounted to £0.5 million and was received in January
2024.
Loss
for the period
The loss for the period was £1.8
million (H1 2023: £2.6 million). The basic and diluted loss per
ordinary share decreased to 0.50 pence per share (H1 2023: 3.81
pence per share) based upon an average number of shares in issue
during the period of 359,338,261 (H1 2023: 69,022,594)
Cash
flow
The Group had £1.8 million of cash
at 31 December 2023 (H1 2023: £1.9 million, FY23: £0.2 million).
The cash inflow for the six-month period to 31 December 2023 was
£1.5 million. During the period proceeds of £3.5m, net of costs,
were received from fundraises in August 2023 and September 2023.
Net cash used in operations totaled £1.8 million, which reflected
operating losses for the period. Within this operating
outflow creditors decreased by £0.4 million, which had built up at
the year-end prior to the completion of the fundraise.
Going concern
For the reasons set out in note 3,
the Directors believe that it remains appropriate to prepare the
financial statements on a going concern basis.