TIDMPYC
RNS Number : 1669F
Physiomics PLC
19 February 2018
Physiomics Plc
("Physiomics" or "the Company")
Interim Results Statement
for the six-month period ended 31 December 2017
Oxford, UK, 19 February 2018: The Board of Physiomics Plc, a
provider of technology-based solutions to predict the effects of
cancer treatment regimens for the biopharma industry (AIM: PYC),
today announces its financial results for the six months ended 31
December 2017.
Physiomics' Virtual Tumour is a sophisticated computer model
that simulates tumour cell division and predicts the effect of
different anti-cancer regimes to support pre-clinical and clinical
oncology development programs. Virtual Tumour helps customers to
balance efficacy and toxicity and to prioritise the most effective
drug combinations while reducing time and cost.
Summary financial results
-- Revenue of GBP74k (H1 2016: GBP174k)
-- Total income GBP142k* (H1 2016: GBP174k)
-- Operating loss GBP220k (H1 2016: GBP263k**)
-- Cash and cash equivalents of GBP166k at 31 December 2017 (31 December 2016: GBP322k)
-- Shareholders' funds of GBP190k at 31 December 2017 (31 December 2016: GBP495k)
* Total income for the six months ended 31 December 2017
includes other operating income which is grant income of GBP68k (H1
2016: GBPNil)
** The operating loss for H1 2016 is after exceptional costs of
GBP41k relating to the termination of the Biomoti acquisition
Operational highlights
Key events in the period include:
-- Announcement that the Company had signed two new contracts
with a global pharma company for Virtual Tumour pre-clinical
predictions relating to a new oncology target
-- Announcement that the Company had entered into a Master
Services Agreement with Merck whose value to Physiomics in calendar
2018 is expected to be EUR500k
Key events subsequent to the period include:
-- Announcement of a pre-clinical project with a new major
pharmaceutical client, due to complete during current financial
year
-- Announcement of a pre-clinical project with a third major
(global top-10) pharmaceutical client in a matter of months
Chairman and CEO's statement
Introduction
Following the announcement of a major deal with long-term client
Merck KGaA in November 2017 and the subsequent announcement in
January and February of new contracts with two major pharmaceutical
clients, the Company is focused on expanding its pipeline of
customers and significantly growing the business.
First half performance was in line with management expectations
given the significant resource that was expended to complete the
Merck KGaA deal and given that the revenue flows from this deal
commenced in January 2018. Despite revenue being down 18% from
GBP174k to GBP142k compared with the comparable prior period, the
Company managed to reduce its operating losses by 16% from GBP263k
to GBP220k through careful focus of spending on key
opportunities.
An industry view
We believe that the advent of more powerful computing solutions,
including cloud-based technologies and AI and their increasing
adoption within the life sciences industry is leading to a
resurgence of interest in rational drug design and in the use of
modelling more generally in the R&D process. We further believe
that there will be increased acceptance of the value of modelling
the effects of oncology treatments rather than falling back on more
traditional, often heuristic, methods.
Within the pharmaceutical and biotech R&D space, the
relentless focus on oncology continues. Some of the key trends
identified in one recent report(1) are as follows:
-- Oncology pipelines have increased in size by 45% over the last ten years
-- Global spend on approved oncology drugs in 2016 was $113bn
and it is estimated that it will grow at 6-9% per year through
2022
-- Sales of newly developed drugs (launched in last 5 years)
represent 20% of total oncology sales in 2016
-- The advent of immune-oncology drugs that harness the power of
the immune system to fight cancer represents a paradigm shift
At the same time, the treatment of cancer has become more
complex
-- Use of biomarkers has allowed sub-populations within cancer
types to be identified leading to an increase in the number of
personalised medicines that can specifically target unique cancer
populations
-- The increase in the number of cancer medicines and mechanisms
of action has led to a huge increase in the options available
_________
(1) Global Oncology Trends 2017. Report by the QuintilesIMS Institute
The Company's Virtual Tumour platform can help clients make
predictions as to the efficacy of combinations of new and old
cancer drugs in both pre-clinical and clinical settings. Virtual
Tumour can also incorporate data from biomarkers to allow
predictions to be made for patient sub-populations and is
therefore, we believe, well positioned to take advantage of these
trends.
It must be remembered that for decades drug discovery programmes
have relied on data from in vivo experiments to guide the direction
of research and to direct the selection of candidates to enter
clinical programmes. As a result, the uptake of sophisticated
modelling approaches has been slow, however, the Directors
predicted that once there was clear validation of the technology
that there would be progressive adoption of the modelling approach.
We believe that Physiomics offers some of the most advanced and
thoroughly validated models in this field and expect that
endorsement of the technology by a world class pharmaceutical
company like Merck KGaA will encourage others to follow. We are now
seeing the first signs of this with the recently announced
contracts signed with two other major pharmaceutical companies.
Business strategy
The Company is leveraging these industry trends as well as its
recent successes to reinforce its ongoing business development
activities, which include reaching out to its extensive database of
contacts, dormant clients and active prospects. The Company
attended the Biotech Showcase held during the recent JP Morgan week
in San Francisco (8-11 Jan) where it held 1-1 meetings with a
number of carefully targeted potential clients from Europe, North
America and the Far East. A combination of long term business
development initiatives and the halo effect of recent announcements
has led to a significant expansion of our business development
pipeline amongst both small and large potential clients. This is
reflected in our announcement, in January, of our first new major
pharmaceutical client for several years.
The Company now has clients in Europe and North America and is
working on a range of projects including in immuno-oncology
applications. For the first time in recent years the Company is
seeking to expand the size of its technical team to increase its
capacity to service new clients.
In parallel to our core work with major pharma and biotech
companies, Physiomics has almost completed the Innovate UK grant
project that was announced in January 2017. This grant project,
focused on the personalisation of oesophageal cancer treatment, has
driven insights that may be integrated into our core Virtual Tumour
offering and will also be the subject of thought capital that will
be exploited over the course of this calendar year at industry
conferences and through the publication of scientific papers in
order to garner further interest from the drug research community.
Finally, the ideas generated by this project have the potential to
be taken forward in a further personalised medicine project for
which the Company is currently seeking funding.
Outlook
We are looking forward to a strong second half as a result of
the Merck KGaA deal announced in November 2017 and the new
contracts with major pharmaceutical clients announced in January
and February.
For further information please contact:
Physiomics Plc
Dr Jim Millen
+44 (0)1865 784980
WH Ireland Limited (nomad)
Katy Mitchell
+44 (0) 161 832 2174
Hybridan LLP (broker)
Claire Louise Noyce
+44 (0) 203 764 2341
Physiomics Plc
Unaudited Statement of Comprehensive Income for the half year ended 31 December 2017
Unaudited Unaudited Audited
Half year to Half year to Year ended
31-Dec-17 31-Dec-16 30-Jun-17
GBP'000 GBP'000 GBP'000
Revenue 74 174 220
Other operating income 68 - 51
Total income 142 174 271
Operating expenses before exceptional costs (362) (396) (760)
Operating exceptional costs - (41) (41)
------------- ------------- -------------
Operating loss (220) (263) (530)
Presented as:
Operating loss before exceptional costs (220) (222) (489)
Operating exceptional costs - (41) (41)
------------- ------------- -------------
Operating loss (220) (263) (530)
Loss before taxation (220) (263) (530)
UK corporation tax 28 30 130
Loss for the period attributable to equity shareholders (192) (233) (400)
------------- ------------- -------------
Loss per share (pence)
Basic and diluted (0.34) p (0.50) p (0.78) p
Physiomics Plc
Unaudited Statement of financial position as at 31 December 2017
Unaudited Unaudited Audited
As at As at As at
31-Dec-17 31-Dec-16 30-Jun-17
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets - - -
Property, plant and equipment 5 7 6
5 7 6
Current assets
Trade and other receivables 236 248 199
Cash and cash equivalents 166 322 210
402 570 409
Total assets 407 577 415
---------- ------------- -------------
Current liabilities
Trade and other payables (217) (82) (87)
---------- ------------- -------------
Total liabilities (217) (82) (87)
---------- ------------- -------------
Net assets 190 495 328
---------- ------------- -------------
Capital and reserves
Share capital 1,128 1,121 1,121
Capital reserves 4,959 4,912 4,912
Profit & loss account (5,897) (5,538) (5,705)
Equity shareholders' funds 190 495 328
---------- ------------- -------------
Physiomics Plc
Unaudited Statement of changes in equity for the half year ended 31 December 2017
Share Share-based Total
Share premium compensation Retained shareholders'
capital account reserve earnings funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2016 1,033 4,327 149 (5,305) 204
Share issue (net of costs) 88 426 - - 514
Loss for the period - - - (233) (233)
Share-based compensation - - 10 - 10
At 31 December 2016 1,121 4,753 159 (5,538) 495
Loss for the period - - - (167) (167)
At 30 June 2017 1,121 4,753 159 (5,705) 328
Share issue (net of costs) 7 47 - - 54
Loss for the period - - - (192) (192)
At 31 December 2017 1,128 4,800 159 (5,897) 190
Physiomics Plc
Unaudited Cash Flow Statement for the half year ended 31 December 2017
Unaudited Unaudited Audited
Half year to Half year to Year ended
31-Dec-17 31-Dec-16 30-Jun-17
GBP'000 GBP'000 GBP'000
Cash flows from operating activities:
Operating loss (220) (263) (530)
Amortisation and depreciation 2 3 5
Share-based compensation 0 10 10
(Increase) decrease in receivables (84) (58) (12)
Increase / (decrease) in payables 130 (17) (12)
Cash generated from operations (172) (325) (539)
UK corporation tax received 75 - 102
Net cash generated from operating activities (97) (325) (437)
Cash flows from investing activities:
Purchase of non-current assets, net of grants received (1) (7) (7)
Net cash used by investing activities (1) (7) (7)
------------- ------------- -----------
Cash outflow before financing (98) (332) (444)
Cash flows from financing activities:
Issue of ordinary share capital (net of costs) 54 515 515
Net cash from financing activities 54 515 515
------------- ------------- -----------
Net (decrease) / increase in cash and cash equivalents (44) 183 71
Cash and cash equivalents at beginning of period 210 139 139
Cash and cash equivalents at end of period 166 322 210
------------- ------------- -----------
Physiomics Plc
Notes to the Interim Financial Statements
1. General information
Physiomics Plc is a public limited company ("the Company")
incorporated in England & Wales (registration number 4225086).
The Company is domiciled in the United Kingdom and its registered
address is The Magdalen Centre, Robert Robinson Avenue, The Oxford
Science Park, Oxford, OX4 4GA. The Company's ordinary shares are
traded on the AIM Market of the London Stock Exchange ("AIM").
Copies of the interim report are available from the Company's
website, www.physiomics-plc.com. Further copies of the Interim
Report and Annual Report and Accounts may be obtained from the
address above.
The Company's principal activity is the provision of services to
pharmaceutical companies in the area of outsourced systems and
computational biology.
2. Basis of preparation
The interim financial statements of the Company for the six
months ended 31 December 2017, which are unaudited, have been
prepared in accordance with the accounting policies set out in the
annual report and accounts for the year ended 30 June 2017, which
were prepared under International Financial Reporting Standards
("IFRS").
The financial information contained in the interim report does
not constitute statutory accounts as defined in Section 435 of the
Companies Act 2006. The financial information for the full
preceding year is based on the statutory accounts for the year
ended 30 June 2017. Those accounts, upon which the auditors,
Shipleys LLP, issued a report which was unqualified but contained
an emphasis of matter paragraph, have been delivered to the
Registrar of Companies.
As permitted, this interim report has been prepared in
accordance with the AIM Rules for Companies and not in accordance
with IAS 34 "Interim Financial Reporting" therefore it is not fully
compliant with IFRS.
The interim financial statements are presented in sterling and
all values are rounded to the nearest thousand pounds (GBP'000)
except when otherwise indicated.
3. Loss per share
Basic loss per share is 0.34p (H1 2016: loss per share 0.50p).
The basic loss per ordinary share is calculated by dividing the
loss of GBP191,934 (H1 2016: loss GBP233,328) by 57,180,002 (H1
2016: 47,123,101), the weighted average number of shares in issue
during the period. The weighted average number of shares in issue
reflects the issue of 1,768,815 shares on 14 December 2017 pursuant
to the exercise of share options (H1 2016: 2,220,000.000 shares
were issued on 21 September 2016 pursuant to a placing subsequently
adjusted for a share 100:1 consolidation on 16 December 2016 to
22,200,000).
The loss attributable to equity holders (holders of ordinary
shares) of the Company for calculating the fully diluted loss per
share is identical to that used for calculating the loss per share.
The exercise of share options would have the effect of reducing the
loss per share and is therefore anti- dilutive.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EADAKFFKPEFF
(END) Dow Jones Newswires
February 19, 2018 02:00 ET (07:00 GMT)
Physiomics (LSE:PYC)
Historical Stock Chart
From Apr 2024 to May 2024
Physiomics (LSE:PYC)
Historical Stock Chart
From May 2023 to May 2024