Diaceutics PLC Trading update (1492L)
11 January 2021 - 6:00PM
UK Regulatory
TIDMDXRX
RNS Number : 1492L
Diaceutics PLC
11 January 2021
11 January 2021
Diaceutics PLC
("Diaceutics" or "the Company" or "the Group")
Trading Update for the year ended 31 December 2020
Diaceutics PLC (AIM: DXRX) announces a trading update for the
year ended 31 December 2020.
Despite the challenges presented in the year due to the Covid-19
pandemic, Diaceutics has progressed its strategy and is pleased to
announce that the Group's revenue and adjusted EBITDA* for the year
to 31 December 2020 are expected to be approximately GBP12.6m**
(2019: GBP13.4m) and GBP0.5m** (2019: GBP2.2m) respectively, with
EBITDA breakeven. This is ahead of revised market expectations.
The Group has a strong closing cash position of GBP25.3m (2019:
GBP11.7m) which includes the funds from the GBP20.5m share placing,
completed in June 2020.
Significant progress has also been made on 'DXRX - The
Diagnostic Network(R)', the Company's proprietary Diagnostic
Network platform for precision medicine, since its successful
launch on schedule on 28 October 2020 with:
-- 19 of the Company's top 30 Pharma clients engaged with the
platform to explore their precision medicine needs and eight client
projects now confirmed for delivery via the platform in H1 2021;
and
-- 68 leading cancer laboratories and diagnostic companies have
been successfully brought directly online to support marketplace
collaborations.
The Company has repositioned employees to support the platform
business model, reduced staff numbers during the second half of the
year and carried out a restructure with an exceptional charge of
approximately GBP0.4m, overall providing an annual cost saving of
GBP1.9m for 2021.
By the end of 2020, the Company had worked on 29 therapy brands
for 23 Pharma companies, compared with 25 therapy brands and 19
Pharma companies, respectively at the end of 2019.
Diaceutics has assessed the impact of Brexit on the organisation
and has taken steps to mitigate this wherever possible. It is not
expected that Brexit will materially affect the business of the
Group.
The Group's annual audited results will be announced on 15 March
2021.
*Adjusted EBITDA is earnings before interest, tax, depreciation,
amortisation and exceptional items but after share based
payments.
** Subject to Audit.
Peter Keeling, Diaceutics' Chief Executive, commented: "In the
first half of the year we grew our client base, revenue and global
reach in line with the trajectory of precision medicine and, at the
same time, continued our investments in data analytics and
preparation for the launch of our DXRX platform in H2. From October
onwards we implemented the successful launch of the DXRX platform,
our proprietary diagnostic network for precision medicine, and have
already seen initial Pharma client and laboratory interactions. In
parallel with this we implemented a strategic restructure enabled
by the shift to a platform centric business model.
"The business restructure along with our strong balance sheet,
and position within the increasingly digital precision medicine
marketplace, will enable Diaceutics to pursue growth and strategic
opportunities as they arise.
"My continued thanks to everyone at Diaceutics and to the
increased investor support we received during the period. It is my
belief that the 'new normal' emerging post the pandemic by mid 2021
will serve to further accelerate the use of real-world evidence and
platform technologies thereby embedding precision testing as the
essential component driving value for Pharma's business model for
the next decade."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
Enquiries:
Diaceutics PLC
Philip White, Chief Financial Officer Via Walbrook PR
Cenkos Securities plc (Nomad & Broker) Tel: +44(0)20 7397
8900
Callum Davidson / Giles Balleny
Michael Johnson (Sales)
Walbrook PR Tel: +44 (0)20 7933 8780 or diaceutics@walbrookpr.com
Anna Dunphy Tel: +44 (0)7876
741 001
Paul McManus Tel: +44 (0)7980
541 893
About Diaceutics
At Diaceutics we believe that every patient should get the
precision medicine they deserve. We are a data analytics and
end-to-end services provider enabled by DXRX - our Proprietary
Diagnostic Network solution for the development and
commercialisation of precision medicine diagnostics. The Company,
listed on the AIM Market of the London Stock Exchange, has created
commercially useful data sets for every precision medicine that has
come to market. We have built the world's largest repository of
diagnostic testing data with a growing network of 2,500
laboratories in 51 countries. www.diaceutics.com
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