TIDMONC
RNS Number : 0638A
Oncimmune Holdings PLC
21 September 2022
This announcement contains inside information
for the purposes of the UK Market Abuse Regulation
21 September 2022
Oncimmune Holdings plc
("Oncimmune", the "Company" and, together with its subsidiaries,
the "Group")
Unaudited results for the 12 months ended 31 May 2022
The number of ImmunoINSIGHTS contracts won doubles
year-on-year
Increasing ImmunoINSIGHTS penetration into top 15 global
pharma
Restructuring of the EarlyCDT(R) Lung operation created an
immediately EBITDA-profitable product business
Oncimmune Holdings plc (AIM: ONC.L), the leading global
immunodiagnostics group, today announces its unaudited results for
the twelve months ended 31 May 2022 and provides an update on
recent trading. The reporting period reflects the announced change
to the Company's financial year end to 31 August (from 31 May) and
the requirement to maintain continuity of reporting pending release
of audited results for the 15 months to 31 August 2022, which is
expected to occur by the end of January 2023.
Operational Highlights
-- Doubled the number of ImmunoINSIGHTS contracts year-on-year -
18 new contracts or extensions signed in the period, an increase
from 9 contracts signed in the 12 months to 31 May 2021 and 3
contracts signed in the 12 months to 31 May 2020
-- Increased ImmunoINSIGHTS penetration into top 15 global pharma
-- Weighted pipeline value of potential ImmunoINSIGHTS contracts
currently stands at over GBP11.0M and growing at c.GBP0.75M per
month. Approximately 40% revenue visibility at start of new
financial year across the combined business.
-- EarlyCDT(R) Lung test received Medicare coverage in the US at
substantially increased in-market selling price
-- Appointment of Alistair Macdonald as the new Non-executive Chair of the Group
-- Received Queen's Award for Enterprise in Innovation 2022
Financial highlights
-- Recognised revenue for the period was GBP3.86M (2021: GBP3.72M)
-- Gross profit for the period was GBP1.46M (2021: GBP2.86M) which includes the majority of the ImmunoINSIGHTS commercial and production team costs
-- Administrative expenses were GBP7.05M (2021: GBP5.65M) which
incorporates GBP0.61M increase in the non-cash amortisation charge
on intangible assets, one-off GBP0.24M recruitment costs of the
build-out of our ImmunoINSIGHTS production headcount and US
commercial team, and higher IT, staff remuneration and insurance
costs. Excluding these items, administration expenses were in line
with the prior year
-- Research & development expenses were broadly stable at
GBP1.52M (2021: GBP1.62M) but are forecast to materially decline
materially over the forthcoming year
-- Share-based payments were GBP1.80M (2021: GBP1.05M)
comprising non-cash expenses of the Group's LTIP and share options
plans
-- Loss after tax was GBP9.90M (2021: GBP4.72M)
Post period end
-- The restructuring of the EarlyCDT(R) Lung product business
post the reporting period has substantially reduced the ongoing
cost base by GBP0.5M, which combined with increased contracted
revenues, has created an immediately EBITDA profitable EarlyCDT(R)
Lung product business
-- The current ImmunoINSIGHTS pipeline is continuing to build in
value and, encouragingly, over the past six weeks, contracts whose
progress through the pipeline had previously slowed are now being
signed. These new contracts are a mix of follow-on-studies as well
as new pharma clients.
Dr Adam M Hill, CEO of Oncimmune said : "Whilst the market
conditions over the past 12 months have been undoubtedly
challenging, particularly for life science tools companies whose
biotech customers have been substantially affected, we are
encouraged by the momentum of our ImmunoINSIGHTS business. The
importance of our autoantibody profiling service to pharma
companies and biotechs is evident in the growing list of blue-chip
customers, which includes many of the world's leading
pharmaceutical companies. We have invested considerable time and
resources in ensuring our systems and processes meet the highest
standards which have in turn allowed us to sign an increasing
number of MSAs with global pharma companies.
"The commercial pipeline has grown well under our new Chief
Business Officer who was appointed in September 2021. As we start
the new financial year, our current visibility of revenue from the
combined ImmunoINSIGHTS pharma services and EarlyCDT(R) Lung
product businesses is greater than approximately 40% of
management's total FY2023 expectations . Furthermore, with a
current pipeline valued at GBP11.0M and growing at GBP0.75M a
month, as well as being driven by a stable and experienced
commercial team, the Board has confidence in FY2023 being an
inflexion year in the commercial growth of the Company."
The Director and Officer of the Company named below take
responsibility for this announcement.
For further information:
Oncimmune Holdings plc
Dr Adam M Hill, Chief Executive Officer
Matthew Hall, Chief Financial Officer
contact@oncimmune.co.uk
Singer Capital Markets (Nominated Adviser and Joint Broker)
Aubrey Powell, Harry Gooden, George Tzimas, James Fischer
+44 (0)20 7496 3000
WG Partners (Joint Broker)
David Wilson, Nigel Barnes, Erland Sternby
+44 (0)20 3705 9321
Investor Relations:
John Goold
IR@oncimmune.com
About Oncimmune
ImmunoINSIGHTS Service Business
Oncimmune is a leading immunodiagnostics developer, primarily
focused on the growing fields of immuno-oncology, autoimmune
disease and infectious diseases. The ImmunoINSIGHTS service
business leverages Oncimmune's technology platform and
methodologies across multiple diseases, to offer life-science
organizations 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.
Oncimmune's ImmunoINSIGHTS service business is based at the
Company's discovery research centre in Dortmund, Germany. The
business platform enables life science organizations to optimize
drug development and delivery, leading to more effectively targeted
and safer treatments for patients.
The ImmunoINSIGHTS development team is based in the US and
Europe and Oncimmune is seeking to replicate the Dortmund facility
in the US in the medium term.
EarlyCDT Product Business
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 programs, globally.
Oncimmune's diagnostic products business is located at its
laboratory facility in Nottingham, UK.
For more information, visit www.oncimmune.com
Operational and commercial review, including post period
events
ImmunoINSIGHTS
There were 18 new or extensions to existing contracts signed in
the period , an increase from nine contracts signed in the 12
months to 31 May 2021 and 3 contracts signed in the 12 months to 31
May 2020.
The current pipeline continues to build in overall value and,
encouragingly, over the past six weeks, we have begun signing
contracts whose progress through the pipeline had previously
slowed. These new contracts are a mix of follow-on-studies as well
as new pharma clients.
The current weighted value of the commercial pipeline of
potential contracts currently stands at over GBP11.0M and is
growing at c.GBP0.75M month-on-month. Within the GBP11.0M of
weighted pipeline, we have approximately GBP1.8M of new contracts
which have completed their legal processes and are in the execution
phase, and therefore we anticipate commencing work on these
projects in Q1 2023. Together with existing signed contracts whose
revenue is also expected to be recognised in Q1 2023, we anticipate
recognising total revenue for Q1 2023 of approximately GBP2.3M.
Thereafter, the pipeline is showing a further GBP2.5M of potential
revenue expected to be recognised over Q2 2023.
The growth in the pipeline is largely due to the planned
expansion in the ImmunoINSIGHTS commercial team which was
substantially expanded from December 2021 onwards. We now have in
place an established commercial team with sufficient experience,
scale and reach to adequately serve our growing pharma client base
in the US and Europe. The pipeline of commercial engagements and
proposals for potential contracts is benefiting from this enlarged
commercial team , and we are confident our strategy will result in
higher volumes of signed contracts in the near to medium term.
The Company's marketing function has been significantly enhanced
with the appointment of a Senior Director of Global Marketing,
based in North America. This appointment will be key to building
brand awareness across the globe, including through the use of
digital projects and automated marketing initiatives. The Group's
website has been re-launched to focus on ImmunoINSIGHTS and we
anticipate the website will lead to an increase in enquiries and in
turn contracts as the website's technical content continues to
build.
The scale up of the Group's Dortmund facility is complete ,
which tripled the facility's operating capacity through increased
headcount and equipment. This expansion has supported the signing
of pilot or proof-of-concept studies, whose completion is, more
often than not, the gateway to signing larger follow-on contracts
and for which capacity needs to be in place on signing.
During the year we have deliberately directed the business and
its resources towards obtaining approved supplier status with our
major pharma customers by signing master service agreements
("MSAs"). This is particularly the case with larger value contracts
or where the study therapeutic area is clinically or commercial
sensitive. The fact that many of our larger clients are requiring
extensive procurement audits to be undertaken prior to signing MSAs
is a clear indication that we are moving up the value chain and of
growing importance to our customers. We believe that the MSAs are a
necessity and create a solid foundation for the future development
of our business, as well as being of further value in the medium
term. They will enable long term relationships to be created, will
facilitate faster contract wins in the future, and help
differentiate ImmunoINSIGHTS from current and future potential
competitors.
Notwithstanding the difficult global economic conditions which
are impacting decision-making and causing a slowdown in signing of
new ImmunoINSIGHTS contracts , the value and number of potential
commercial contracts within our pipeline continues to grow.
Throughout the reporting period, the sales cycles from initial
discussions to contracting and implementation has lengthened. This
is partly due to the deliberate MSA process we are pursuing, under
which large pharma conducts extensive procurement processes before
committing to a long-term engagement with Oncimmune. However, once
completed, these MSAs are already beginning to provide longer term
benefits by both shortening the contracting cycle and widening our
overall access to our clients' existing and future clinical
programmes.
As the Company builds its pharma services business,
ImmunoINSIGHTS, the trend for new pharma companies to undertake
smaller pilot studies is being increasingly observed. This allows
customers to validate our technology and quality of service before
then signing higher value contracts with larger sample sets. These
smaller pilot studies have also been used by our clients to compare
our technology, quality of service and the value of our data
informatics and analysis, against competitors. We are pleased to
report that, whenever we have asked to perform against competitors,
we have emerged as the leading provider of immune-profiling
services, which in turn has resulted in the signing of follow-on
contracts or a requirement to complete a MSA audit process as a
precursor to signing long-term supply arrangements. We are
therefore confident that, as our business grows, our reputation and
market penetration will increase to the point where pharma
companies will feel increasingly confident to award ImmunoINSIGHTS
multiple contracts in differing disease areas, as well as
multi-year recurring contracts.
Having built a solid foundation in offering highly valued
scientific insights to pharma and biotech companies, the Group is
now also focusing on expanding its technological capabilities and
service offerings. This is being pursued using internal resources
and, as has been announced in recent updates, the Group is also
actively evaluating potential M&A opportunities which could
accelerate this expansion. We believe there is a real opportunity
to create a market-leading organisation with a broader range of
pharma services, which can be the partner of choice for the world's
leading pharma and major biotech companies. This strategy of
combining organic growth with the acquisition of adjacent
technologies is one which other pharma service providers have
successfully executed on, including companies with which our newly
appointed Chair has been involved.
EarlyCDT(R) Lung
In July 2022, the Nottingham-based product business was
restructured, to substantially lower its cost base and ensure that
this business is immediately EBITDA profitable on existing
contracted revenues, before the benefit of any further volume
growth.
Biodesix, Inc. (Nasdaq: BDSX) ("Biodesix"), the Group's US
distributor of the EarlyCDT Lung product (marketed in the US as
NodifyCDT (R) ) , recently announced that WPS Government Health
Administrators, the Medicare Administrative Contractor with
jurisdiction for Biodesix's Kansas laboratory, has provided a
coverage determination for the NodifyCDT(R) Lung nodule test at an
in-market selling price which is approximately 10 times the current
selling price. Medicare coverage is expected to drive faster and
wider adoption of the test across the US which will in turn provide
increased revenues to the Group over time. Overall sales in the US
are also underpinned by our existing commercial contract with
Biodesix, which provides minimum sales volumes.
Biodesix also recently announced that Royal Philips is to
incorporate the results from tests performed on the NodifyCDT(R)
Lung nodule into the Philips Lung Cancer Orchestrator lung cancer
patient management system. We anticipate that this development will
lead to an increase in awareness of the test amongst clinicians
across the US and in turn increase in the volume of tests
performed.
Product sales continued to our distributor base outside of the
US, although sales volumes are still affected by the COVID-19
pandemic.
The iDx-Lung (1) programme, a collaboration between the
University of Leeds, the Southampton Clinical Trials Unit at the
University of Southampton, is ongoing, with 4,400 patients
recruited to date in Southampton and Leeds.
A successful real-world screening evaluation pilot with the
Norfolk and Waveney Clinical Commissioning Group ("CCG") has been
completed and the final report is expected in the coming months .
Adoption of the EarlyCDT Lung test within this NHS CCG is expected
in the second half of calendar 2022.
A second pilot study screening over 2,000 patients has also been
signed and is anticipated to commence in the second half of
calendar 2022. This study will be undertaken alongside a regional
cancer alliance which will add further exposure for the EarlyCDT(R)
Lung test within this specialist group of clinical leaders focused
on improving the cancer pathways and outcomes for patients. On
completion of the pilot and the associated report, we anticipate
this will lead to an ongoing supply contract.
New appointment to Chair
On 8 July 2022, Alastair Macdonald was appointed as
Non-executive Chair of the Group. Alistair succeeds Meinhard
Schmidt, who has retired from the Board. The Company has already
recorded its thanks to Meinhard for his services to the Company;
helping guide the Company through its IPO and supporting the senior
management team on the strategic evolution of the business.
Alistair brings a 25-year career in life sciences to Oncimmune.
Until recently he was CEO of one of the world's leading integrated
CRO, Syneos Health, Inc. ("Syneos") (Nasdaq: SYHN; market cap
c.US$6.6BN), prior to which he was CEO of INC Research ("INC")
which merged with inVentiv Health to become Syneos in 2017. During
his time with INC and then Syneos, revenues grew both organically
and through a series of acquisitions from $20M to over $5.0BN.
Queen's Award for Enterprise in Innovation 2022
Oncimmune was awarded the Queen's Award for Enterprise 2022 in
the innovation category, endorsing Oncimmune as a leading developer
of applied immunodiagnostics for the early detection of disease,
drug discovery and development.
Financial highlights
Recognised revenue for the period was GBP3.86M (2021: GBP3.72M).
Throughout the reporting period we experienced a progressive
slowdown in the signing of new ImmunoINSIGHTS contracts. More
detail for the reasons behind this can be found in the operational
and commercial review. More recently, however, we have begun to
sign new contracts which had previously slowed within the
commercial pipeline. Additionally, in June 2022, Biodesix announced
the successful Medicare coverage determination for EarlyCDT(R) Lung
in the US at an in-market selling price which is approximately 10
times the current selling price. Coincident with this announcement,
we have received updated revenue forecasts from Biodesix which
confirm an increase in order volumes as well as an increase in the
average in-market selling price which has resulted in an uplift in
our quarterly royalty revenues.
Gross profit for the period was GBP1.46M (2021: GBP2.86M), which
for the reporting period, includes the majority of the costs of the
ImmunoINSIGHTS commercial and production teams. During the
reporting period the cost of both teams increased substantially
compared to the prior year.
Administrative expenses were GBP7.05M (2021: GBP5.65M). Certain
costs were higher in the reporting period including one-off
recruitment costs of GBP0.24M associated with the build-out of our
ImmunoINSIGHTS production headcount and US commercial team,
GBP0.13M of IT costs to move staff to home-working during the
COVID-19 pandemic, GBP0.53M of increased staff remuneration and
GBP0.16M of increased insurance costs. Also included is a non-cash
GBP0.61M increased amortisation charge against Intangible assets.
Excluding these costs, administration expenses are in line with the
prior year.
In August 2022, a restructuring of the Nottingham-based
EarlyCDT(R) Lung product business was undertaken which reduced the
ongoing cost base by approximately GBP0.5M and, when combined with
the recent increase in contracted revenues, has created an
immediately EBITDA profitable business.
Research & development expenses were stable at GBP1.52M
(2021: GBP1.62M). For the forthcoming year to 31 August 2023, we
anticipate research & development expenditure to significantly
reduce in line with our priority focus on the commercial activities
of the Group.
Share-based payments were GBP1.80M (2021: GBP1.05M) representing
the non-cash cost of expensing the Group's LTIP and share options
plans.
Loss after tax was GBP9.90M (2021: GBP4.72M).
Gross cash balance at the period end was GBP2.53M (31 May 2021:
GBP8.63M; 30 November 2021: GBP2.97M) and net debt at the period
end was GBP8.16M (31 May 2021: GBP0.83M; 30 November 2021:
GBP5.39M), after investment, including capacity growth. The Company
drew down an additional EUR3.0M (c. GBP2.50M) in December 2021
under the IPF facility to fund the acceleration in the
ImmunoINSIGHTS business, including the expansion of the US-based
commercial team.
In August 2022, the Group's renewed its debt banking facility
with IPF Partners. The new terms provide for a 12-month deferral of
all principal repayments until June 2023, no further issue of
warrants, no change in the fixed existing cash margin rate of 9%,
and the continued repayment of interest as from September 2022. The
new facility terms are expected to provide the Group with a cash
headroom to continue to grow the commercial pipeline and convert
that pipeline into signed contracts, revenue, and cash. An
arrangement fee of EUR EUR1.5M has been agreed which is payable at
final maturity of the debt, with up to 50% (EUR EUR0.75M) of this
fee able to be offset against any warrants already issued to IPF
Partners.
(1) NHS Lung Health Check Programmes in Wessex and Yorkshire as
part of the iDx-LUNG evaluation programme
Consolidated statement of comprehensive income
Unaudited Audited
Year to Year to
31 May 31 May
2022 2021
GBP'000 GBP'000
Total Total
Revenue 3,859 3,722
Cost of sales (2,402) (865)
----------- -----------
Gross profit/(loss) 1,457 2,857
Research and development expenses (1,517) (1,615)
Administrative expenses (7,052) (5,652)
Share-based payment (1,800) (1,046)
(10,369) (8,313)
Other income 326 311
----------- -----------
Operating loss (8,586) (5,145)
Finance income - 403
Finance costs (943) (954)
Finance costs - net (943) (551)
Loss before taxation (9,529) (5,696)
Taxation 17 1,068
----------- -----------
Loss after tax from continuing
operations the financial year (9,512) (4,628)
Other comprehensive income
Exchange translation differences (384) (91)
Loss after tax and total comprehensive
income for the year attributable
to equity holders (9,896) (4,719)
Basic and diluted loss per share (13.7)p (7.17)p
=========== ===========
Consolidated statement of financial position
Unaudited Audited
31 May 31 May
2022 2021
GBP'000 GBP'000
Assets
Non-current assets
Goodwill 1,578 1,578
Intangible assets 3,237 4,116
Property, plant and equipment 918 664
Right-of-use assets 627 930
Deferred tax asset 927 937
----------- ---------
7,287 8,225
----------- ---------
Current assets
Inventories 413 143
Trade and other receivables 6,219 7,079
Contract assets 808 200
Cash and cash equivalents 2,530 8,631
----------- ---------
9,970 16,063
----------- ---------
Total assets 17,257 24,278
=========== =========
Equity
Capital and reserves attributable
to the equity holders
Share capital 695 691
Share premium 40,635 40,497
Other reserves 5,894 4,094
Merger reserve 31,882 31,882
Foreign currency translation
reserve (296) 88
Own shares (1,926) (1,926)
Retained earnings (79,611) (70,099)
----------- ---------
Total equity (2,727) 5227
Liabilities
Non-current liabilities
Deferred tax 115 374
Lease liability 352 671
Other liabilities 2,000 2000
Borrowings 2,420 6,239
----------- ---------
4,887 9,284
----------- ---------
Current liabilities
Trade and other payables 1,963 1,979
Contract liabilities 5,180 5,175
Other statutory liabilities 40 55
Lease liability 443 310
Other liabilities - -
Borrowings 7,471 2,248
----------- ---------
15,097 9,767
----------- ---------
Total liabilities 19,984 19,051
=========== =========
Total equity and liabilities 17,257 24,278
=========== =========
Consolidated statement of changes in equity
Share Share Other Merger Foreign Own Retained Total
capital premium reserves reserve currency shares earnings
translation
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 June 2020 635 31,459 3,048 31,882 179 (1,926) (65,471) (194)
Loss for the year - - - - - - (4,628) (4,628)
Other comprehensive income:
Currency translation
differences - - - - (91) - - (91)
-------- -------- --------- -------- ------------ -------- --------- --------
Total comprehensive expense
for the period - - - - (91) - (4,628) (4,719)
Transactions with owners:
Shares issued in year 50 8,331 - - - - - 8,381
Options exercised 2 106 - - - - - 108
Shares issued in relation to
prior year acquisition 4 601 - - - - - 605
Share-based option charge - - 1,046 - - - - 1,046
As at 31 May 2021 691 40,497 4,094 31,882 88 (1,926) (70,099) 5,227
======== ======== ========= ======== ============ ======== ========= ========
Loss for the year - - - - - - (9,512) (9,512)
Other comprehensive income:
Currency translation
differences - - - - (384) - - (384)
-------- -------- --------- -------- ------------ -------- --------- --------
Total comprehensive income - - - - (384) - (9,512) (9,896)
Transactions with owners:
Shares issued in year - - - - - - -
Exercise of options and
warrants 4 138 - - - - - 142
Shares issued in relation to - - - - - - - -
prior year acquisition
Share option charge - - 1,800 - - - - 1,800
As at 31 May 2022 695 40,635 5,894 31,882 (296) (1,926) (79,611) (2,727)
======== ======== ========= ======== ============ ======== ========= ========
Consolidated statement of cash flows
Unaudited Audited
Year to Year to
31 May 31 May
2022 2021
GBP'000 GBP'000
Cash flows from operating activities
Loss before income tax (9,529) (5,696)
Adjusted by:
Depreciation and amortisation 1429 740
Share-based payment charge 1,800 1,046
Interest received - (403)
Interest expense 943 954
Gain on disposal of assets - -
Fair value gain - 176
Exchange rate movement 3 -
Changes in working capital:
(Increase)/decrease in inventories (270) 31
Increase in trade and other receivables 253 (5,837)
Increase / (decrease) in trade
and other payables (428) 4,841
Cash used in operating activities (5,799) (4,148)
Interest paid (169) (885)
Interest received - 3
Income tax received (243) 503
---------- ---------
Net cash used by operating activities (6,211) (4,527)
---------- ---------
Cash flows from investing activities
Purchase of property, plant and
equipment (504) (446)
Purchase of intangible assets - (625)
Proceeds from sale of assets - 215
Net cash (used in)/ generated
from investing activities (504) (856)
---------- ---------
Cash flows from financing activities
Net funds raised through share
issue 142 8,489
Loan advances 3,345 2,728
Loan repayments (2,347) (1,135)
Principal elements of lease repayments (153) (303)
Net cash generated from financing
activities 987 9,779
---------- ---------
Movement in cash attributable
to foreign exchange (375) (5)
Net change in cash and cash
equivalents (6,103) 4,391
Cash and cash equivalents at
the beginning of the year 8,631 4,240
Cash and cash equivalents at
the end of the year 2,528 8,631
========== =========
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR EAFNEAEPAEAA
(END) Dow Jones Newswires
September 21, 2022 02:02 ET (06:02 GMT)
Oncimmune (LSE:ONC)
Historical Stock Chart
From Apr 2024 to May 2024
Oncimmune (LSE:ONC)
Historical Stock Chart
From May 2023 to May 2024