Oncimmune Holdings plc (LON:ONC), the leading global immunodiagnostics group, has announced its unaudited results for the year ended 31st May 2020 and provides an update on recent progress.
Highlights
Commercial progress
EarlyCDT® Lung
– Strategic commercialisation agreement signed with Biodesix in the US for the rights to commercialise EarlyCDT Lung in nodules alongside the sale of US CLIA laboratory, materially reducing ongoing operating costs.
– EarlyCDT Lung cancer detection technology to be used in research contract signed with one of the world’s largest pharmaceutical companies to detect lung cancer cases in a screening setting; initial project completed and expectation that this will develop into a long-term partnership in 2021.
– EarlyCDT Lung blood test now has 19 commercial distribution and partnership agreements covering 24 countries with a significant order book of minimum sales commitments from distributors secured.
– Medtech Innovation Briefing published by NICE supporting the potential for EarlyCDT Lung to aid early diagnosis of lung cancer in high risk patients whilst providing wider benefits by saving other NHS resources (CT scanning and radiologists) and reducing waiting times; cost-effectiveness of EarlyCDT Lung blood test demonstrated in health economics evaluation by Leeds University.
– Further technical validation of the EarlyCDT Lung blood test achieved with publication of positive results from the Early detection of Cancer of the Lung Scotland (ECLS) trial in the European Respiratory Journal.
ImmunoINSIGHTS Service
– Launch of ImmunoINSIGHTS, following acquisition of Protagen Diagnostics AG, leading to the establishment of a contract discovery and development business, further diversifying revenue across the Group – now includes services across immuno-oncology, autoimmune disease and recently, infectious diseases.
– Strong relationships built with large pharmaceutical and leading biotech companies, generating material ImmunoINSIGHTS contracts signed post year end, with both Roche and Genentech, a well-funded and innovative US biotech and other leading and innovative biopharmaceutical companies.
– Expansion of ImmunoINSIGHTS capabilities into infectious diseases, including COVID-19, following award of funding from the UK Government announced post year end to profile severity of immune responses to COVID-19 and predict therapeutic outcome.
– Early validation of infectious disease capabilities via initial partnership with Cedars-Sinai Medical Center, California, and further ongoing commercial discussions expected to be contracted this financial year and beyond.
Organisational Highlights
– Refocused the Board from nine to six Directors, comprising one Executive Director and five Non-Executive Directors (of which two are Independent Non-Executive Directors), to provide a more agile and focused Board to oversee the Group’s scale-up whilst capitalising on the multiple opportunities for rapid growth.
Financial Highlights
– Income for the year of £715k (2019: £220k) excluded additional contract income of £511k signed and invoiced immediately before year end, and paid in July, bringing total invoiced income to £1.2M. The FY 2020 H1 to H2 growth in commercial activity in the first full year of the Group’s strategic plan demonstrates its continued and successful implementation.
– Successful implementation of a cost reduction programme which continued post year end, reducing monthly operating costs in H2 2020 compared to H1 2020, has positioned the Group to capitalise on scalable and profitable growth over the medium term.
– Loss for the financial year was £8.5M (2019: £8.0M); includes £850k of one-off costs associated with acquiring and integrating Protagen Diagnostics, Biodesix commercialisation agreement and the disposal of the Group’s US CLIA laboratory.
– Cash balance at year end of £4.2M (2019: £5.4M) and net debt of £3.0M (2019: net cash £5.4M).
– €8.5M credit facility with IPF Management fully drawn down during the year to meet increased business development and working capital needs. Facility extended by €6.0M post year end, with a €3.0M tranche drawn down in October 2020 to ensure the Group has sufficient capital to support outsourcing due diligence by pharmaceutical companies and to provide additional working capital to facilitate near-term growth from pharma service opportunities.
Outlook
– A growing pipeline of commercial opportunities for both EarlyCDT Lung and ImmunoINSIGHTS has materialised throughout 2020, resulting in active and late-stage discussions with a number of national health systems and pharmaceutical partners, globally.
– Additional further opportunities for ImmunoINSIGHTS created as a result of the Group’s agreement to support the UK Government’s COVID-19 programme with the development of an infectious disease NavigAID™ panel.
– Negotiations with the NHS to adopt EarlyCDT Lung are approaching a conclusion with announcement expected soon of first contract to sell EarlyCDT Lung to the NHS.
– Actively evaluating opportunities to accelerate growth across the Group through both organic programmes and inorganic acquisitions and the Board continuing to consider the optimal capital base from which to deliver these opportunities and to maximise returns to stakeholders.
Dr Adam M Hill, CEO of Oncimmune Holdings commented:
“We have made strong progress in our first full year of trading since the launch of our three-year strategy in September 2018, which has delivered a step-change in our revenue growth over the year led by the ImmunoINSIGHTS services business. Despite the impact of COVID-19, further positive news flow post year end has sustained the Group’s growth trajectory throughout H1 2021.
“Following the successful turnaround, Oncimmune now has a solid platform business underpinned by its core technology and expertise, that is validated by an expanding stable of commercial contracts and a full pipeline of pharma service opportunities. This underpins our expectation of delivering substantial further growth in the re-focused business throughout FY 2021 and beyond, about which the Company looks forward to providing further progress updates.”
