IXICO plc Trading update (5062W)
April 26 2021 - 1:00AM
UK Regulatory
TIDMIXI
RNS Number : 5062W
IXICO plc
26 April 2021
IXICO plc
("IXICO" or the "Company")
Trading update
Strong first half year of trading and contract wins reflect a
resilient business model in a growth market
IXICO plc (AIM: IXI), the data analytics company delivering
insights in neuroscience, today provides a trading update ahead of
results for the six months ended 31 March 2021.
Highlights:
-- Revenues expected to be GBP4.9m for six months to 31 March
2021 (2020: GBP4.6m), representing 8% growth;
-- GBP9.4m (2020: GBP4.0m) of contracts signed across several
clients and neurological disease indications over the period;
-- Adjusted Order book* of GBP19.0m at 31 March 2021 (2020: GBP15.3m); and
-- Strong cash balance of GBP7.0m (2020: GBP6.7m).
* Order book is contracted but unrecognised revenue adjusted
down to provide the Company's best expectations of delivery.
The Company has delivered another strong six months of revenue
growth and announced significant new contracts despite the impact
that the COVID-19 pandemic has had on the clinical development
sector . The new contracts cover nine different clients and five
different neurological indications. This success reflects momentum
in the Company's commercially led growth strategy underpinned by
the development of its AI analytics solutions. The performance
extends the four-year period of continuous revenue growth as
reported at the end of 2020, whilst achieving a strong ratio of new
contract bookings to revenues.
On 23 March 2021, the Company announced that its largest client
had stopped dosing participants in its phase III and open-label
extension trials in Huntington's disease ('HD'). The client has now
provided a revised protocol for these trials and, as anticipated,
IXICO's safety and data analysis services will continue to be
utilised to support further understanding of the trialled drug
candidate data. Previously, the Company had indicated that the
maximum impact on revenues could be c.GBP2.7m for the remaining
period of FY21 and c.GBP5m in FY22. Receipt of the revised protocol
has enabled IXICO to estimate impact for 2021 as GBP0.7m and
GBP2.8m for 2022, with a total of GBP7.1m removed from its order
book through to 2024. These estimates are subject to levels of
patient reconsent, which is a requirement for the trial's
continuation, and will be carefully monitored over the coming
months.
Following this adjustment, the Company's order book at 31 March
2021 totalled GBP19.0m.
The Company's first half results will be released on 25 May
2021.
Giulio Cerroni, CEO of IXICO, said: "Considering the delays
experienced in the past year to new trial start-ups (other than
COVID-19 trials), we are particularly pleased with the increasing
pace of new contract wins, combined with continued top-line growth
reported for the first half of 2021. The resulting strong book to
bill ratio for the period reflects both the resilience of our
operating model which supports remote delivery of services and also
the significant market opportunity being addressed by IXICO.
"The news in March that our largest client was no longer dosing
patients in their late-stage HD trials was devastating for patients
suffering with HD and the global HD research community. We must
acknowledge that clinical trials do unfortunately fail as part of
the clinical development process. The search will continue for a
cure for HD with several new trials being initiated to address this
terrible disease. IXICO's experience as a partner to the largest HD
trials to date positions us ideally to support this pursuit.
"New commercial and scientific initiatives, such as our recently
announced Microsoft partnership, will accelerate our development of
new world-leading image analysis solutions, and streamlined,
efficient and scalable operational delivery. Together with our
strong balance sheet and order book, these place us in a good
position to continue to invest in support of our medium to long
term growth plans."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 (MAR)
For further information please contact:
IXICO plc +44 (0)20 3763 7498
Giulio Cerroni, Chief Executive Officer
Grant Nash, Chief Financial Officer
Cenkos Securities PLC (Nominated adviser
and sole broker) +44 (0)20 7397 8900
Giles Balleny / Max Gould (Corporate
Finance)
Michael F Johnson / Russell Kerr
(Sales)
Walbrook PR Ltd Tel: 020 7933 8780 or IXICO@walbrookpr.com
Paul McManus / Lianne Cawthorne Mob: 07980 541 893 / 07584 391
/ 303 /
Alice Woodings 07407 804 654
About IXICO
IXICO is dedicated to delivering insights in neuroscience. Our
mission is to transform the progression of our biopharmaceutical
clients' neurological therapeutic pipelines through the application
of novel imaging and digital biomarkers.
IXICO's data analytics services are used by the global
biopharmaceutical industry to interpret data from brain scans and
digital biosensors to enable better trial design, site
qualification, patient selection and clinical outcomes. We provide
technology-enabled services across all phases of clinical
evaluation. Our integrated digital platform provides a scalable and
secure infrastructure for the capture and analysis of regulatory
compliant clinical data to enable clients to make rapid, better
informed decisions. IXICO is also collaborating with partners to
develop new analytical techniques and companion digital health
products targeted at improving patient outcomes.
More information is available on www.IXICO.com
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