EDX Medical Group plc (AQSE:EDX), which develops innovative digital diagnostic products and services for the personalised treatment for cancer, heart disease and infectious diseases, has announced publication of its Interim Report and Financial Statements for the six-month period ended 30 September 2023.
Highlights:
- Collaboration agreement with Thermo Fisher to jointly develop and potentially commercialise proprietary qPCR assays – including novel and innovative cancer diagnostic solutions.
- Acquisition and integration of Hutano Diagnostics Ltd, enabling the Group to accelerate development of new ‘point-of-care’ tests to measure multiple markers of disease on a single device.
- Strategic agreement with Guardant Health Inc. (NASDAQ: GH), a leading precision oncology company, as the exclusive distributor of blood-based liquid biopsy tests to healthcare providers in the Nordic region and the private healthcare sector in the UK.
- Commencement of revenue generation through Guardant agreement.
- Cash balance at 30 September 2023: £1,104,801.
- Strategic investment from investors including: £500,000 from Boru Ltd, a private investment company which invests in growth companies on a global basis, at a price per share of £0.08, announced on 30 June 2023 and £350,000 from Seerave Enterprises Ltd, a philanthropic non-profit organisation which has a global commitment to improving patient access to personalised cancer treatment, at a price per share of £0.08 announced on 26 May 2023.
Jason Holt, Chairman, commented:
“During the reporting period, the Group has continued to develop its strategy of creating innovative digital diagnostic healthcare products and services to address major diseases and enable better treatment and outcomes for patients.
“The imperative for the Group post this half-yearly interim reporting period remains growing our business rapidly as opportunities emerge to take forward products and projects with significant commercial potential.
“As we progress the commercial opportunities available, we will continue to explore emerging prospects for novel diagnostic products as well as assessing further investment options that expand the scale of and growth prospects for the Group.”
INTERIM MANAGEMENT REPORT
During the reporting period, EDX Medical Group PLC has continued to develop its strategy of creating innovative digital diagnostic healthcare products and services to address major diseases and enable better treatment and outcomes for patients.
The imperative for the Group post this half-yearly interim reporting period remains growing our business rapidly as opportunities emerge to take forward products and projects with significant commercial potential.
EDX Medical has invested in high quality commercial and scientific personnel as well as raising capital to undertake the necessary steps to grow our business. We have also invested sensibly in very compelling new product areas that have attractive future markets and revenue generation opportunities as follows:
Our acquisition and integration of Hutano Diagnostics Ltd (“Hutano”), based in Oxford, enables the Group to accelerate and expand our development capabilities of innovative, new ‘point-of-care’ tests capable of accurately measuring a combination of multiple markers of disease on a single device within minutes.
These new tests will be used by health professionals in their daily workplace to rapidly identify and characterise emerging signs of cancer, infections, and heart disease and can be carried out, without the delays and costs associated with laboratory testing.
The first products in development address the detection, characterisation and quantification of infectious diseases caused by bacteria and viruses such as fever and sepsis and are expected to be available commercially within the next twelve months.
Point-of-Care Testing is a global market opportunity for our business and the combination of Hutano’s technology and our existing expertise with reagents and smart-phone digital readers positions the Group as pioneers in this area.
Post the reporting period, we finalised a strategic agreement with Guardant Health Inc. (NASDAQ: GH), a leading precision oncology company, as the exclusive distributor of Guardant Health’s blood-based liquid biopsy tests to healthcare providers in the Nordic region and the private healthcare sector in the UK. This presents EDX Medical with an opportunity to drive forward with revenue generating products. Under the agreement, EDX Medical will distribute the Guardant360® CDx test for genomic testing in advanced cancer and the Guardant Reveal™ test for residual disease and recurrence detection.
The distribution contract with Guardant Health is another step in our strategy to provide healthcare professionals with world-class products and services to rapidly improve cancer diagnosis, drug therapy selection, and recurrence detection, delivering improved clinical outcomes for patients.
EDX Medical has also recently signed a collaboration agreement with Thermo Fisher to jointly develop and potentially commercialise a number of proprietary qPCR assays – including novel and innovative cancer diagnostic solutions. The multi project collaboration will harness Thermo Fisher’s powerful technologies and information translation systems to deliver a number of advanced testing solutions in development at EDX Medical or licensed from partners, including a proprietary assay to enable personalised radiotherapy and a novel chemotherapy toxicity assay focusing on serious adverse events.
Financial Summary
During the period, the majority of the Company’s administrative expenditure has related to expenses incurred in connection with preparing the Company to be able to deliver in line with the strategy outlined above. The loss for the six-month period was £1,336,723 (Loss in period to 30 September 2022: £684,854).
Trade and other receivables as at 30 September 2023 were £531,543 (September 2022: £193,024).
The cash balance as at 30 September 2023 was £1,104,801 (September 2022: £86,924).
Trade and other payables at 30 September 2023 were £547,846 (September 2022: £787,205).
Overall, at the period-end, net assets/(liabilities) were £388,000 (September 2022: (£691,397)).
The outlook for the remainder of the financial year remains positive. As we move towards our first anniversary as a listed company, we are now clearly entering into a new phase for the Group and during the first half of this financial year we have attracted significant new investment at a premium from investors who have embraced our vision. Our business strategy was endorsed at our recent AGM. As we progress the commercial opportunities available, we will continue to explore emerging prospects for novel diagnostic products as well as assessing further investment options that expand the scale of and growth prospects for the Group.
These prospects align with the EDX directors’ belief of the need for better access to risk assessment, diagnosis and personalised treatment of illness. This need has never been greater as the post-pandemic world becomes accustomed to ever-increasing patient backlogs and the imperative drive for fast, effective diagnosis. Hence, the Group wishes to pioneer the universal trend of personalised medicine that detects the early onset of disease as well as accentuates accurate risk prediction. The Group sees this twin approach as the most impactful way to reduce deaths and lowering the future costs of healthcare provision globally.
Finally, as Chairman of EDX Medical Group Plc, I would like to thank my fellow Board directors, new investors, shareholders and all the teams within the Group who are working together to grow our new enlarged business in 2023 and beyond.
Jason Holt, Chairman
