TIDMMSYS
RNS Number : 1889M
Microsaic Systems plc
07 May 2020
7 May 2020
Microsaic Systems plc
("Microsaic", "Microsaic Systems" or the "Company")
Update on operational progress and
cash conservation measures due to COVID-19
Microsaic Systems plc (AIM: MSYS), the developer of point of
need mass spectrometry ("MS") instruments, provides an operational
update on the effect of COVID-19 on the business since the
announcement of the 2019 full year results on 9 March 2020.
In common with many businesses across the world, Microsaic is
currently facing unprecedented challenges arising from COVID-19. In
the third week of March, staff were asked to work from home, in
line with UK Government guidelines. To maximise cash conservation,
action was taken to significantly reduce expenditure at every level
of the business, including cutting non-payroll expenditure to
essential items only. On 1 April, the Company implemented a
temporary 20% reduction in pay for all employees and directors
until the business is no longer being negatively impacted by the
COVID-19 crisis and the resulting lockdown restrictions. In
addition, a small number of employees were furloughed under the UK
government job retention scheme.
The Company's distribution and OEM channels have been unable to
operate normally due to the international lockdown restrictions
currently in place in many countries. However, where customer or
partner sites are operational, the Company is successfully
trialling remote installation and training of its systems,
capitalising on its easy-to-use software and rapid maintenance
procedures that these systems provide.
Despite the challenges imposed by travel restrictions, we
continue to make progress with existing and prospective partners
through remote communication channels.
In particular, further progress has been made in implementing
our strategy of creating a range of complete product systems
combining Liquid Chromatography ("LC") with Microsaic's MS ("LCMS
system"), a market worth an estimated $5 billion in 2018*:
1. Earlier this year, Microsaic announced its partnership with
Axcend Corp to integrate the compact Microsaic 4500 MiD(R) MS with
the portable Axcend Focus LC(R). The system will be commercialised
globally using both companies' direct sales and selected
distribution channels as a small footprint, easy-to-use and
cost-competitive nano LCMS system. Progress is also being made with
joint marketing initiatives to generate end-user interest in the
combined system, which offers significant savings in annual running
costs when compared with traditional LCMS systems.
2. Microsaic has recently completed the integration of its MS
with an established LC which will enable the launch of its own
branded LCMS system for sale both through its direct sales
personnel in the UK and selected European markets, and through its
growing network of international distribution partners. This
offering does not compete with the Axcend Focus LC(R).
The Company is also continuing to make progress with ProteinID,
its product for on-line bioprocessing monitoring, which has
relevance to the manufacture of a range of biologics including,
potentially, vaccines and monoclonal therapies. ProteinID is
ideally placed to detect the individual components of biologics and
their metabolites, and the ability to perform this analysis in real
time would enable accelerated development and manufacture of new
drugs with high quality control to combat existing and emerging
diseases. The collaborations with the Massachusetts Institute of
Technology ("MIT") and the Centre for Process Innovation ("CPI")
continue, though there will be some inevitable delay. However,
Microsaic continues to support its collaborators remotely and is
available to work with new partners and customers, using previously
validated technology, to demonstrate the efficiencies and quality
advantages of in-line, real-time analysis in bioprocessing.
In the current conditions, it is difficult to have forward
visibility on the potential demand for Microsaic's products for the
current financial year. However, the Board believes that the
actions taken to manage costs and cash in the context of lower than
anticipated revenues have effectively offset the effects of the
COVID-19 pandemic on the cash runway in 2020. The Board continues
to believe that the significant opportunities available to the
Company offer the potential for strong growth in the future and is
continuing to review all financing options available to the Company
to ensure it is sufficiently capitalised.
The Board is closely monitoring the evolving situation and its
impact on the business and will make further announcements as
appropriate.
Glenn Tracey, CEO of Microsaic Systems plc, commented:
"Given the global nature of the COVID-19 crisis and the
unprecedented circumstances arising from it, we have had to make
some difficult decisions to safeguard Microsaic's business for the
longer-term. The Board understands that the measures taken have
required a sacrifice from our employees and from many of our
suppliers, and we greatly appreciate the understanding shown by all
our stakeholders at this very challenging time.
"Against this difficult backdrop, it has been especially
encouraging that we continue to make progress with existing and
potential new partners on developing our sales channels, and on
extending our product offering with LCMS systems for both our
direct sales and selected distribution channels. Further, we are
continuing to make progress with our collaborations and
developments in bioprocessing, which remains a very exciting growth
opportunity for the Company."
*Source: Top Down Analytics (2019 Outlook: Analytical
Instruments Industry)
Enquiries:
Microsaic Systems plc +44 (0) 1483 751 577
Glenn Tracey, CEO
Bevan Metcalf, FD
N+1 Singer (Nominated Adviser & Joint
Broker) +44 (0)20 7496 3000
Aubrey Powell / George Tzimas (Corporate
Finance)
Tom Salvesen (Corporate Broking)
WH Ireland Limited (Joint Broker) +44 (0)20 7220 1666
James Joyce (Corporate Finance)
Jasper Berry (Corporate Broking)
About Microsaic Systems
Microsaic Systems plc (AIM: MSYS) is a high technology company
developing chip-based, bench-top and point-of-analysis mass
spectrometry ("MS") instruments that are designed to improve the
efficiency of pharmaceutical R&D and manufacturing, and have
applications in environmental testing, chemical reaction
monitoring, and academic teaching. The Company is working with a
range of established global life science OEM partners, distributors
and research organisations to co-develop and commercialise new
solutions to improve productivity in the development of small
molecule and novel biologic (peptides, antibodies) medicines. MS is
a powerful method of analysis to enable earlier decision making
relating to product identification, purity and bioactivity, and is
the analytical technique of choice for biochemists across many
industry sectors.
Microsaic's core products, the 4500 MiD(R), and MiD(R)ProteinID
are robust and compact MS systems, retaining the functionality of
larger conventional MS systems, easier to use by non-specialists,
consuming less energy and having lower running costs. For more
information, please go to www.microsaic.com .
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END
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