Oncimmune takes action on funding and partnerships to drive growth
Currently, if investors suspect a smallcap company needs to raise money, then due to the low liquidity, the stock price tends to overreact to the downside.
This appears to be case for (), a leading life sciences firm providing autoantibody profiling services for the drug development industry, whose shares have collapsed over the past few weeks (see below).
As such, this morning the company clarified the situation, saying that it is "exploring strategic partnerships" to build its critical mass, and has appointed advisors Alvarez & Marsal Capital. Similarly, the Board is seeking additional funding to extend its "limited cash runway" beyond April 2025 in light of the slower-than-expected conversion of certain client contracts. Here, has been impacted by a slowdown across the biopharma sector, which has triggered order delays, one deferral and one cancellation.
That said, the group remains confident in its long-term prospects and reiterates its 10th Feb'25 outlook. Namely, revenues are anticipated to climb 20% to £1.4m (£1.19m LY) for Feb H1'25, and by 45% to £4.0m for Aug'25, alongside becoming cashflow positive in FY26.
Elsewhere, there are 11 further live projects under discussion with a potential combined value of £1.8m+, on top of a number of significant strategic collaborations and transformative contracts. Whilst there is no certainty as to value and timing of these deals, if secured they could materially improve financial performance.
Equally, is further cutting its cloth and has taken steps 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 was £1m of cash available as at 31 Jan'25 compared to £1.5m of loan principal outstanding. A substantial proportion of forecast FY25 revenue, though, still remains to be collected as cash.
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