Oncimmune secures $2.2m in new contracts, forecasts profitability in FY25
When I last spoke to CEO Martin Gouldstone of () - a leading life sciences firm providing autoantibody profiling services to enable personalised medicine across the drug development industry - he told me winning contracts was like London buses. What I didn't appreciate at the time was he meant small fleets of them, rather than ones or twos.
Indeed, after signing 2 flagship deals over the past month (worth $1.5m and $0.7m), the company said it had secured 3 more this morning - all helping to underpin August FY25 turnover expectations of £6.9m vs £3.0m FY24 and £1.15m FY23. Assuming things go to plan, this would represent a marvellous achievement and signify a major turnaround for the group.
Two of the new contracts are with a US biotech to analyse multi-omic data from its clinical trials - a new area for Oncimmune, reflecting its strong data analytics capability. The third is via an existing contract research organisation with the project providing IgA autoantibody analysis for a European biotech as a follow-on from an earlier study.
Elsewhere, Oncimmune has also entered into a framework agreement with a major UK R&D biotech accelerator, from which initial sales are set for FY25 and beyond.
So what does this all mean in terms of numbers?
Well, today the Board reiterated its August FY25 guidance anticipating "substantial revenue growth and to achieve profitability" - which when augmented by a healthy pipeline, provides robust visibility over Cavendish's (house broker) FY25 adjusted EBITDA and PBT forecasts of £1.5m and £0.8m respectively on sales of £6.9m, generating a 50p/share target price.
CEO Martin Gouldstone commenting: "This has been a very busy period and a real indication of the commercial traction we have been seeing in the market. These new wins help to set us up well, following on from the solid base we have built in FY24 giving us confidence in our ability to be profitable in FY25."
Chairman Alistair Macdonald adding: "Martin has been with the team a little over a year now and we have seen a step change in the commercial focus in that time. We are pleased to see the increased traction with customers starting to convert into better commercial results and a broadening pipeline as we enter a new financial year."
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