Microsaic Systems plc (LON:MSYS), the developer of point of need mass spectrometry instruments and analytical solutions, has announced its unaudited interim results for the six months ended 30 June 2021. A strategic change of business model early in 2021 has resulted in a recovery of revenues, increasing to £499k in H1 2021, significantly above H1 2020 and that of H1 2019, a pre-pandemic benchmark.
Highlights
· Unaudited r evenues of £499k :
o 594% increase on H1 2020 (£72k) and 52% improvement compared to H1 2019 (£328k)
o Strongest adjusted EBITDA performance since the Company was admitted to AIM
· January: transformative placing which raised gross proceeds of £5.5m, board changes and strategic shift away from independent development to a commercial strategy with external partners
· March: commercial agreement with DeepVerge plc (“DeepVerge”; AIM: DVRG), facilitating international deployment of Microsaic’s products and services in applications such as water monitoring of chemicals and pathogens, and in support of DeepVerge’s rapidly growing Labskin division
· May: collaboration with Swansea University to combine real-time monitoring of environmental water using AI in determining the link between environmental chemical pollution and human health
· May: Heads of Terms (“HoT”) with a Chinese distributor for the distribution of Microsaic’s technology as part of a medically licenced bed-side solution for therapeutic drug monitoring (“TDM”) in China.
· June: initial shipments to a newly signed Chinese partner to secure medical licence for China to deliver real-time TDM with future recurring revenue opportunities (including service and reagent consumables) expected in 2022
· June: increased orders through DeepVerge sales channel under the framework agreement
· Five key commercial hires focusing on environmental detection of water contamination and human health markets, delivering real-time on-site monitoring and data analytics with connected Internet of Things (“IoT”), AI and support services
Post Period Events
· July: First real-time monitoring demonstration of on-line production of biotherapeutic drugs such as vaccines and anti-cancer treatments using Process Analytical Technology within a Microsaic micro-engineered MS solution
· August: Heads of Terms (“HoT”) signed for production of unique point-of-care hospital bedside diagnostic unit with manufacturing partner to support the distribution of Microsaic’s micro-engineered MS technology providing additional support for medical device licence in China
· August: The launch of a miniaturised mass spectrometer platform, achieving triple quadrupole (“Triple Quad”) limits of detection for real-time monitoring and identification of organic chemicals in water and soil, a first for MS technology delivering regulatory-grade testing methods in the field
· September: Signing of a full agreement with a Chinese partner Jiangsu Henzhihe Technologies Co. Ltd (“HZH”), providing a forward manufacturing and service support centre for distributors in China. HZH will initially support the Chinese distributor (RNS 4th May 2021) for point of need TDM, and securing a medical licence to ship products in China into this (and other) markets globally
Ongoing commercial developments
· Disruptive low-cost and mobile system to detect organic chemicals in water and wastewater adapted for in-field deployment
· Detection of volatile contaminants in water, with product demonstration expected in H2 of this year. This significantly expands the reach of applications with mobile capability for environmental regulatory authorities
· Multiple collaboration projects, including in-surgery cancer diagnostics, with the aim to secure commercial supply agreements with the potential to revolutionise operating theatre surgical oncology interventions
Outlook
· The Board anticipates the sales momentum of H1 to continue in H2 based on its sales pipeline. Potential collaborations and trials with DeepVerge may lead to significant opportunities in environmental water detection
· During the second half of 2021 the Board expects full agreements to be signed with its Chinese Partners for the assembly, distribution and servicing of its product in China, ahead of achieving a medical device licence in China for therapeutic drug monitoring in 2022
· Furthermore, in H2 , Microsaic intends to appoint a contract research organisation (“CRO”) to undertake cell line work in bioreactors before placing its bioprocessing technology and services with end-user biopharma for beta trials, ahead of expected commercialisation in 2022
· The Company expects to launch a new detection platform in H2, targeting a wider range of chemical contaminants in water. This will further augment the combined chemical/pathogen detection capabilities between DeepVerge and Microsaic
Glenn Tracey, CEO of Microsaic Systems plc, commented:
” I am thrilled to report this transformational performance for the first half of 2021, following the effects the COVID-19 lockdown had on our customers, suppliers and employees throughout 2020 and the operational and financial strain this placed on the Company. The new commercial strategy of collaborating, partnering and revenue sharing is moving the Company away from equipment-only sales. Microsaic is now focused on offering integrated real-time data analytics with AI alongside our mass spectrometry hardware, providing complete, value-adding solutions such as in-field environmental testing and on-site human diagnostics. The change in strategy and business model has already opened up new market opportunities and applications for our differentiated technology solutions, and demonstrated solid evidence of sales growth which is expected to continue into H2.
I am also delighted to have signed our partners HZH, which represents a major expansion of our global footprint as we continue to bring on point of need technical solutions in the near term.”
