Oncimmune forecasts 33% revenue growth for FY25, focuses on partnerships
Successful turnarounds rarely go up in a straight line.
Indeed, following 18 months of flawless execution,
( ) - a niche life sciences firm offering autoantibody profiling services to the drug development industry - said today that it had been impacted by a temporary slowdown across the biopharma industry alongside order delays, 1 deferral and 1 cancellation. This air pocket in demand is not dissimilar to recent news from other CRO experts.Consequently, despite Feb H1'25 revenues anticipated to climb +20% to £1.4m (£1.19m LY), the Board now expects August FY25 sales to be in the region of £4m (+33% vs LY £3m) vs house broker Cavendish's £6.9m forecast.
That said, with 7 months left there is still plenty to play for.
In fact, since the start of November
has signed one new contract and has 11 others under negotiation, together worth approx. £2.0m. On top, there are early-stage discussions with several existing clients for follow-on work, plus a number of significant strategic collaborations and transformative contracts, which could materially improve performance.Elsewhere, Oncimmune is also cutting its cloth and has already taken actions to ensure its overheads and debt service costs will be significantly lower in FY25 vs FY24, resulting in a cost base of c. £5m pa. Regarding liquidity, there is currently £1m of cash available as of 31 Jan'25, compared to £1.5m of loan principal outstanding.
Lastly, the Board is exploring strategic partnerships and business synergies to build its critical mass, as well as seeking additional finance to extend its cash runway.
CEO Martin Gouldstone commenting: "Following the substantial revenue growth seen between FY23 (£1.15m) and FY24 (£3.0m), our focus remains on delivery of world-class results for our customers on existing projects, and the pursuit and conversion of other opportunities with existing and new customers. We remain optimistic and are pursuing several opportunities which could be transformative for the business."
Follow News & Updates from Oncimmune:
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.