TIDMPYC
RNS Number : 2267V
Physiomics PLC
04 April 2023
4 April 2023
Physiomics plc
("Physiomics" or "the Company")
Trading and company update
Physiomics plc (AIM: PYC), the oncology consultancy using
mathematical models to support the development of cancer treatment
regimens and personalised medicine solutions, would like to update
the market on current trading and ongoing board restructuring and
strategic initiatives.
Trading
The Company continually monitors the lifescience environment in
which it operates and, over the course of the year to date, the
Company's revenues have come under pressure at least partly as a
result of the ongoing squeeze in biotech funding which is causing
companies of all sizes to conserve cash. We comment further on some
of the positive and negative drivers of Company revenue growth as
follows:
-- Merck KGaA ("Merck") remains a key client with which the
Company has a long-established and mutually beneficial
relationship, however, Merck publicly confirmed in late January
this year that it was streamlining its US operations near Boston.
Although Physiomics continues to have active projects with Merck,
this internal reorganisation has led to a number of anticipated
projects not being commissioned within the current financial year
which will lead to a shortfall in revenue compared to that budgeted
for this client
-- Whilst continuing to nurture the Merck relationship, we have
been pursuing an active diversification programme to move away from
dependence on any single customer such that the proportion of
revenue derived from our largest customer has fallen from a high of
over 80% in FY19 to less than 40% in H1 FY23
-- The diversification programme was projected to substantially
offset the reduction in Merck revenues in the current financial
year, however, in the last few weeks, two large projects (one with
an existing and one with a new client) with a value totalling over
GBP200k have been unexpectedly delayed, meaning that the mitigation
of reduction of Merck revenues in the current financial year will
not be as substantial as anticipated. It is anticipated that at
least one of these projects with a value of around GBP100k will
commence in the next financial year while the second of these two
large projects is more uncertain
-- The Company's pipeline remains strong, with over 25 potential
largely new client projects in discussion at various stages from
first contact through to proposal development
As a result of the factors described above, the Company believes
its total income for the current financial year will be around
GBP750k.
Ongoing restructuring of the board and cost controls
-- The Company is actively recruiting for a COO role to
optimally support its growth in current and potential new
consulting areas. It is anticipated that this individual, should
the Company be successful in its recruitment process, will take on
significant responsibilities from the Executive Chairman / CEO
-- The total cost of the current Company Directors (not
including this new role) will increase by just 2.3% this calendar
year on an annualised basis and, in particular, the Executive
Chairman / CEO's pay will remain flat (having increased just 2% in
his seven years of service to date)
-- The Company anticipates that its operating expenses will not
exceed those budgeted for the FY23 and is actively looking at any
savings that could be realised both in the short and medium term
without impacting the ability of the Company to generate new
business
Strategic Initiatives
In parallel with the development of its current consulting
offering, the Company is actively pursuing growth through a number
of strategic initiatives. Further detail on some of these is
provided below:
-- Expansion into consulting areas adjacent to those currently serviced
o The Company has identified a number of services to biopharma
companies that are closely aligned to its current consulting
business and is actively investigating an expansion into these
areas
o The objective of any such expansion would be to generate
additional revenues in FY24
-- Continued exploration of opportunities in personalised medicine
o Collaboration with Beyond Blood - as announced earlier this
week and following on from the successful completion of the PARTNER
trial, our collaboration with Beyond Blood could be key to
unlocking the potential of our personalised dosing tool and the
Company will be working actively to understand how our personalised
dosing tool and Beyond Blood's cell counting technology can be used
synergistically
o Further development of our dosing tool for use in guiding the
use of granulocyte/ macrophage colony stimulating factor (GCSF) -
as outlined in our update on 9 January 2023. We see significant
potential in the adaptation of our current personalised dosing tool
to support clinical decision making on the use of this expensive
biological drug and indeed the concept has received early positive
feedback when tested with a small number of US clinicians. The
Company is actively exploring non-dilutional grant funding
opportunities for all its personalised dosing initiatives and if
successful these could provide additional sources of funding in
FY24
o Collaboration with DoseMe - the Company is in an ongoing
dialogue with the new management of DoseMe and further
announcements on this will be made in due course
Executive Chairman & CEO, Dr Jim Millen, commented :
"Despite the current challenges faced by biotech companies, there
continues to be a strong demand for modelling and simulation
services and our progress in diversifying our client base is
mitigating the effects of a reduction in revenue from a single
large client. In parallel with the organic growth of our current
consulting business, we are actively exploring a number of
strategic initiatives that we believe could add significant value
from FY24 onwards."
Dr Millen will make a live presentation on this update via
Investor Meet Company on 6 April 2023 at 3:00pm BST which will be
open to all existing and potential shareholders. Questions can be
submitted pre-event via your Investor Meet Company dashboard up
until 9:00am BST the day before the meeting or at any time during
the live presentation.
Investors can sign up to Investor Meet Company for free and add
to meet Physiomics plc via
https://www.investormeetcompany.com/physiomics-plc/register-investor.
Investors who already follow on the Investor Meet Company platform
will automatically be invited.
This announcement is released by Physiomics plc and contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) 596/2014 (MAR), and is disclosed in
accordance with the Company's obligations under Article 17 of
MAR.
Enquiries:
Physiomics plc
Dr Jim Millen, CEO
+44 (0)1865 784 980
Hybridan LLP (Broker)
Claire Louise Noyce
+44 (0) 203 764 2341
Strand Hanson Ltd (NOMAD)
James Dance & James Bellman
+44 (0)20 7409 3494
Notes to Editor
About Physiomics
Physiomics plc (AIM: PYC) is an oncology consultancy using
mathematical models to support the development of cancer treatment
regimens and personalised medicine solutions. The Company's Virtual
Tumour(TM) technology uses computer modelling to predict the
effects of cancer drugs and treatments to improve the success rate
of drug discovery and development projects while reducing time and
cost. The predictive capability of Physiomics' technologies have
been confirmed by over 100 projects, involving over 50 targets and
75 drugs, and has worked with clients such as Merck KGaA, Astellas,
Merck & Co and Bicycle Therapeutics.
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END
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