TIDMONC
RNS Number : 0908B
Oncimmune Holdings PLC
08 June 2021
8 June 2021
Oncimmune Holdings plc
("Oncimmune" or the "Company")
Full Year Trading Update
FY21 revenues of GBP5.6 million (8x increase on FY20)
Successful equity placing to deliver 4x scale up in
ImmunoINSIGHTS business development and operating capacity
FY22 revenue growth expected to be predominantly driven by
continued strength of ImmunoINSIGHTS services business. Strong
start to FY22 anticipated from contracts signed in the final
quarter of FY21 and contracts expected to be signed in Q1 FY22
Oncimmune Holdings plc (AIM: ONC.L), the leading global
immunodiagnostics group, today provides a trading update for the 12
months ended 31 May 2021 ("FY21"). The Company expects to announce
its FY21 results in late September 2021.
FY21 revenues in line with market expectations with capital
available to increase capacity for future contracts
The Company reports FY21 revenues of GBP5.6 million (FY20:
GBP0.7 million), which is in line with market expectations and more
than an eightfold increase on FY20. Additionally, the Company has
also managed its cost base tightly during the year following the
implementation of a cost reduction programme in FY20.
In March 2021, the Company completed an equity fundraise with
gross proceeds of GBP9 million to provide additional funding to
increase the ImmunoINSIGHTS commercial team headcount, principally
in the US, as well as increasing the operational capacity at the
Company's laboratory facility in Dortmund, Germany. The programme
to increase capacity to approximately 40,000 samples per annum by
Q1 FY23, is proceeding to plan and will enable the Company to meet
the increasing the demand from customers for its ImmunoINSIGHTS
service offering.
During the year, the Company signed and delivered major
ImmunoINSIGHTS contracts for Roche Pharmaceuticals ("Roche") and
Genentech, a member of the Roche Group, as well as a number of
further contracts for biotechs and leading healthcare providers. In
Q4 FY21, the Company launched its proprietary Infectious Diseases
panel and shortly thereafter signed substantial new contracts with
Roche and Cedars-Sinai Medical Center ("Cedars-Sinai"), with the
majority of revenue from these contracts due to be realised in
FY22.
Additionally, in Q4 FY21, the Company signed a new autoantibody
profiling study with a leading US-based global pharmaceutical
company. This programme will evaluate the autoantibody profiles of
patient samples in immuno-oncology and autoimmune trials and is
scheduled to complete in Q2 FY22. During Q4 FY21, the Company also
agreed an extension to the existing Master Services Agreement with
Cedars-Sinai Medical Center, Los Angeles. Under this new
arrangement, which is structured as a Service Level Agreement
("SLA"), the Company will analyse samples from multiple COVID-19
projects funded by Cedars-Sinai using the Company's proprietary
Infectious Diseases panel to support Cedars-Sinai's ongoing
COVID-19 research into the immune response to the disease. This
evolution from an order driven engagement to a partnership
underpinned by an SLA is an example of Oncimmune's commitment to
support its collaborators over the longer term, and their
recognition of the value-adding insights that immune-phenotyping
brings to both drug discovery and real world research scenarios.
This fourth agreement gives Cedars-Sinai the flexibility to build
upon and adjust the focus of their research as the global response
to the pandemic evolves.
Within the EarlyCDT(R) product business the Company also
achieved success, having signed commercial contracts to supply the
EarlyCDT Lung blood test within the NHS. Oncimmune is pleased to
report that since signing these initial contracts, the Company has
agreed a further NHS supply contract in Q4 FY21 which is scheduled
to commence revenue generation from Q1 FY22. It is expected that
further NHS supply contracts will be signed in the near term. As
previously reported, the Company's US partner for EarlyCDT Lung,
Biodesix, Inc ("Biodesix") has seen a strong recovery in demand for
the EarlyCDT Lung test in the US, as the effects of the COVID-19
pandemic subside, and they expect demand to increase further
throughout FY22.
Strong outlook for FY22 as ImmunoINSIGHTS service contracts are
expected to be converted into strategic commercial partnerships
During FY20 the Company laid the foundations for commercial
success following the acquisition of Protagen Diagnostics AG (now
known as Oncimmune Germany GmbH) in March 2019, and the resultant
ImmunoINSIGHTS offering has emerged through the global pandemic in
FY21 as a robust and resilient growth engine for the Company. The
ImmunoINSIGHTS business presents shareholders with a base of
profitable revenue, layered with upside optionality from retained
rights to foreground IP emanating from the contracts delivered for
biotech and pharmaceutical customers. FY22 will nonetheless
represent another step change in revenue growth, as the commercial
pipeline is converted into service contracts and subsequently into
multiple projects and broader strategic commercial partnerships
with associated long term revenue potential.
The ImmunoINSIGHTS pipeline of qualified commercial
opportunities has continued to grow throughout FY21 and currently
stands at more than 160. A number of these opportunities are in
late stage legal documentation and, as a consequence, the Company
expects to sign these new contracts in Q1 FY22. These studies have
been programmed into the Company's forward production schedule,
which entails identifying and assigning the resources required to
deliver each contract. Of particular note in this schedule are two
contracts for major pharmaceutical companies which represent
substantial follow-on validation contracts.
The anticipated signing of these new contracts in Q1 FY22
together with those contracts already signed in FY21 is expected to
deliver revenue of approximately 50% of the FY22 market
expectations for the ImmunoINSIGHTS business. With this high degree
of visibility of revenue at the beginning of the financial year, we
are confident in the Group's ability to deliver management's
revenue expectations for FY22.
In view of the growth in the ImmunoINSIGHTS commercial pipeline,
the Company's is actively considering establishing a duplicate
laboratory facility in the US to directly service its US client
base. Currently over 90% of the Company's commercial revenues for
this business are sourced from US-based pharmaceutical companies
and biotechs, and the building by the Company of a US-based
ImmunoINSIGHTS business development team would be expected to
complement a new facility.
In addition, the Company's EarlyCDT product business is
beginning to see an improvement in commercial activity following
the impact of COVID-19 on FY20 and FY21. The Company's product
sales into the NHS continue to grow and it is receiving increasing
demand for deliveries of product into the US to Biodesix.
Dr Adam M Hill, CEO of Oncimmune said: "Despite FY21 being a
challenging year for us all with the backdrop of COVID-19, I have
been humbled by the individual dedication and professional
commitment shown by all within the Oncimmune team, enabling us to
stick to the schedule laid out in our three-year forward strategy.
We were able to deliver the second and third pillars of our
strategy - moving into patient selection through partnerships with
pharma companies - through the launch of ImmunoINSIGHTS, while we
have continued to successfully access both the UK and US markets
with EarlyCDT Lung providing sales channels from which we can build
.
"The Company has delivered outstanding top line growth - an
average of over 40% quarter upon quarter growth over the last 8
periods. ImmunoINSIGHTS has also proven its ability as a
stand-alone business, and we anticipate this will be an enabler of
future investment and growth looking forward."
For further information:
Oncimmune Holdings plc
Dr Adam M
Hill, Chief Executive Officer
Matthew Hall, Chief Financial Officer
contact@oncimmune.co.uk
Zeus Capital Limited (Nominated Adviser)
Andrew Jones, Daniel Harris, James Hornigold
+44 (0)20 3829 5000
N+1 Singer (Joint Broker)
Aubrey Powell, Harry Gooden, Iqra Amin
+44 (0)20 7496 3000
WG Partners (Joint Broker)
David Wilson, Claes Sp å ng
+44 (0)20 3705 9321
Media enquiries:
FTI Consulting
Ben Atwell, Michael Trace, Alex Davis
Oncimmune@fticonsulting.com
+44 (0)20 3727 1000
About Oncimmune
Oncimmune is a leading immunodiagnostics developer, primarily
focused on the growing fields of immuno-oncology, autoimmune
disease and infectious diseases. Oncimmune has a diversified and
growing revenue from its portfolio of diagnostic products to detect
early-stage cancer and a contract discovery and development
service-based platform, delivering actionable insights into
therapies to its pharmaceutical and biotech partners .
Our understanding of the immune system enables us to harness its
sophisticated response to disease to detect cancer earlier and to
support the development of better therapies. The key to improving
cancer survival is early detection and better selection for
therapy. As a company, we are driven by our passion to improve
cancer survival and to give people extra time.
Oncimmune's ImmunoINSIGHTS platform enables life science
organisations to optimise drug development and delivery, leading to
more effective targeted as well as safer treatments for patients.
Oncimmune's immunodiagnostic technology, EarlyCDT, can detect and
help identify cancer on average four years earlier than standard
clinical diagnosis. Our lead diagnostic test, EarlyCDT Lung,
targets a vast market estimated to grow to GBP3.8bn by 2024. With
over 200,000 tests already performed for patients worldwide and its
use being supported by peer reviewed data in over 12,000 patients,
we are poised to become an integral component of future lung cancer
detection programmes, globally.
Oncimmune, headquartered at its laboratory facility in
Nottingham, UK, and has a discovery research centre in Dortmund,
Germany.
For more information, visit www.oncimmune.com
What is ImmunoINSIGHTS?
The ImmunoINSIGHTS service business leverages Oncimmune's
technology platform and methodologies across multiple diseases, to
offer life-science organisations actionable insights for therapies
across the development and product lifecycle. Our core
immune-profiling technology is underpinned by our library of over
eight thousand immunogenic proteins, one of the largest of its
kind. This helps identify trial participants and patients into
clinically relevant subgroups, enabling development of targeted and
more effective treatments.
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