IXICO delivers strong H1 2025 with 26% revenue growth and expanded US operations
Despite a series of setbacks over the past 2 decades, the biopharma industry is now on the verge of making significant breakthroughs in the treatment of neurodegenerative diseases like Alzheimer's, Parkinson's, and Huntington's.
Indeed, the past few years have seen a surge in R&D investment following the launch of Leqembi (Biogen) and Kisunla (Eli Lilly) in 2024. However, this is just the start. Later in 2025, a new wave of next generation drugs is moving into late stage clinical trials, such as Bristol Myers Squibb's Cobenfy and Roche's trontinemab for Alzheimer's.
One life sciences firm at the heart of these advances is smallcap AI-powered medical imaging analytics expert (mrkcap £7.3m) . It is already the world's #1 player in Huntington's research, and is currently expanding into Alzheimer's and Parkinson’s - which are both much bigger markets and where has already won several important contracts.
Ok, so how are things progressing?
Well, this morning said that for H1'25, it had traded in line with expectations with LFL sales jumping 26% YoY to £3.2m, adding the business was "in a strong position to deliver or exceed Sept FY'25 guidance" (re £6.0m turnover and EBITDA of -£1.4m) underpinned by c. 95% revenue cover for H2. Elsewhere, the balance sheet remains robust too, after completing an oversubscribed £3.7m (net) fundraise in Oct'24 at 9.5p. In fact, net cash came in at £5.0m (or 5p/share) as at 31st Mar'25, equivalent to a modest H1 cash burn of £0.5m.
Sure, the orderbook fell sequentially to £13.1m from £15.3m in Sept'24, albeit this was still up 3% YoY and is likely to further increase in H2, as several large industry contracts are awarded for forthcoming clinical studies.
CEO Bram Goorden commenting: "H1'25 has seen IXICO add new global capabilities, talent and innovation. This is resulting in new client wins in targeted disease areas building on our strengthened financial performance at the end of 2024. It is rewarding to see our Company’s position in the thriving space of neurodegenerative disease research and, having recently completed my first 6 months, my conviction has been further strengthened that IXICO and its differentiated technology platform is going to make an accelerated impact in the market."
Finally, at 8p the stock trades on less than 1x EV/revs - which looks far too cheap for an IPR rich and rapidly expanding life sciences stock. Especially when compared to the 2023 takeovers of Instem (clinical trial software) and Medica (radiology services) on multiples of between 3.0x-3.5x EV/sales. Instead Cavendish has a 24p/share price target and interims are scheduled for 20th May 2025.
In this fascinating interview, CEO Bram Goorden of kindly takes me through today's inline H1'25 trading update and positive outlook.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.