TIDMABDX
RNS Number : 9353V
Abingdon Health PLC
15 August 2022
Abingdon Health plc
("Abingdon" or "the Company")
Trading and commercial update
& Directorate change
York, U.K. 15 August 2022: Abingdon Health plc (AIM: ABDX), a
leading international developer and manufacturer of high quality
and effective rapid tests, provides the following trading and
commercial update for the year ended 30 June 2022 ("FY22").
FY22 Year End Trading update
The trading performance in FY22 was disappointing. FY22 revenues
are expected to be in the region of GBP2.8m (FY21: GBP11.6m
(GBP3.6m excluding DHSC revenue and a one off COVID customer
order)) and a substantial loss for the year will be incurred. A
significant proportion of these losses relate to the increase in
operational infrastructure related to AbC-19(TM) and the DHSC
contract and the subsequent unwinding of this investment. As part
of this, the Company further restructured its operations early in
Q4 FY22 with a reduction in headcount from 123 employees at the end
of December 2021 to 86 employees at the end of July which, along
with other cost saving measures implemented, has significantly
reduced the ongoing monthly operational cash outflow.
The Company's cash balance at the end of July was GBP7.6m,
following the settlement of the outstanding monies owed by the
DHSC, including the GBP1.5m that is held in a blocked account
awaiting the outcome of the Judicial Review. The Directors are of
the opinion that the current cash balance gives the Company
sufficient working capital beyond the end of the current fiscal
year ending 30 June 2023 ("FY23") without material revenue
growth.
Abingdon transitioned its focus back to its contract service
business model in FY22 and as and when the Company begins
generating meaningful commercial traction, it will look to grow its
headcount sustainably and in line with the anticipated growth of
the business and revenues.
Technical transfer contracts
In the second half of FY22, the Company signed six new technical
transfer contracts. These commercial opportunities span a range of
markets and are underpinned by Abingdon's lateral flow expertise as
well as the flexibility of its commercial proposition. Abingdon is
actively working on the transfer of three of these projects, in the
areas of fertility and food testing, with a number of the remaining
transfers anticipated to commence later in the year, subject to
various conditions being met.
On 17 May 2022, the Company announced that it had signed a
significant contract with a European customer with minimum revenues
of GBP2.7m in the first year. Due to issues unrelated to Abingdon,
the technical transfer process, which was originally expected to
take two months, is yet to complete. The Company is continuing its
dialogue with the customer, however, regrettably there is now a
high degree of uncertainty around the timing or materialisation of
any revenues under this contract.
Following the announcement on 5 April 2022, the Company
continues to work closely with Vatic as they progress their US FDA
Emergency Use Approval ("EUA") and awaits the key reagent from
Vatic to begin the manufacturing of the devices. It is anticipated
that there is the potential for significant manufacturing volume
subject to Vatic attaining FDA EUA approval; although the timing or
materialisation of revenues in relation to this contract are
uncertain.
Abingdon Simply Test
In June 2022, Abingdon announced a supply agreement with
Taiwanese group Arise Biotech ("Arise") for the supply of 10
million Abingdon Health Simply Test COVID-19 antigen tests, with an
option for Arise to acquire an additional 20 million tests. The
purchase order is subject to the Abingdon Simply Test receiving
Taiwan EUA. Abingdon continues to work closely with Arise on the
regulatory process with the Taiwanese FDA.
The Company launched its Abingdon Simply Test range on its new
e-commerce site on 21 July 2022, with 11 self-test products
available across a range of indications. It is intended that
Abingdon will both develop its own products and work with a range
of suppliers, including its contract service customers, to provide
a broad range of self-test products on the Abingdon Simply Test
e-commerce site.
R&D update
Abingdon continues to develop its own self-test products and is
currently focused on two self-tests: flu and Lyme disease; both of
which should reach proof of concept shortly. The Company has also
conducted some preliminary work in the area of Hepatitis C
testing.
In May 2022, the Company announced the signing of a strategic
partnership with DeepVerge plc for the development of a range of
tests, initially focusing on lateral flow test ("LFT") devices to
detect pathogens and chemicals in wastewater. DeepVerge will fund
the development of the tests and Abingdon will be the exclusive
manufacturer following completion of the development and technical
transfer process.
Directorate change
Abingdon Health also announces that Mr Lyn Rees, Non-Executive
Director, will be leaving the Board of Abingdon Health at the end
of September 2022. Mr Rees is making this move due to his desire to
focus on his role as CEO of Yourgene Health plc.
Dr Chris Hand, Non-Executive Chairman of Abingdon Health said:
"I would like to thank Lyn for his tremendous contribution since he
joined the Abingdon Board in June 2020. It has been a pleasure to
work with Lyn and I wish him well as he concentrates on his role at
Yourgene Health plc."
Commenting on trading and outlook, Chris Yates, CEO of Abingdon
Health plc, said: "Despite what has been a challenging year for the
Company, we are nonetheless encouraged by our progress, with a
range of new COVID-19 and non-COVID-19 opportunities. We believe
that FY23 will see a return to revenue growth and that our
programme of investment will see us begin to generate meaningful
commercial traction.
"FY22 was disappointing in many respects, particularly the
distraction of the Judicial Review and the challenges in resolving
the lack of payment from the DHSC. Despite this hindrance we have
built a solid base of international opportunities and we look
forward to the new financial year with a growing base of contract
service customers."
Enquiries:
Abingdon Health plc www.abingdonhealth.com/investors/
Chris Yates, Chief Executive Officer Via Walbrook PR
Melanie Ross , Chief Financial Officer
Dr Chris Hand, Non-Executive Chairman
Singer Capital Markets (Sole Broker and Tel: +44 (0)20 7496 3000
Nominated Adviser)
Peter Steel, Alex Bond (Corporate Finance)
Tom Salvesen (Corporate Broking)
Walbrook PR Limited Tel: +44 (0)20 7933 8780 or abingdon@walbrookpr.com
Phillip Marriage / Alice Mob: +44 (0)7867 984 082 / +44 (0)7407 804
Woodings 654
About Abingdon Health plc
Abingdon Health is a world leading developer and manufacturer of
high-quality lateral flow rapid tests across all industry sectors,
including healthcare and COVID-19. Abingdon is the partner of
choice for a growing global customer base and takes projects from
initial concept through to routine and large-scale manufacturing
and has also developed and marketed its own labelled tests.
The Company offers product development, regulatory support,
technology transfer and manufacturing services for customers
looking to develop new assays or transfer existing laboratory-based
assays to a lateral flow format. Abingdon Health aims to support
the increase in need for rapid results across many industries and
locations and produces lateral flow tests in areas such as
infectious disease, clinical testing including companion
diagnostics, animal health and environmental testing. Faster access
to results allows for rapid decision making, targeted intervention
and can support better outcomes. This ability has a significant
role to play in improving life across the world. To support this
aim Abingdon Health has also developed AppDx(R) , a customisable
image capturing technology that transforms a smartphone into a
self-sufficient, standalone lateral-flow reader.
Founded in 2008, Abingdon Health is headquartered in York,
England.
For more information visit: www.abingdonhealth.com
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