REG - Aptamer Group PLC - Half Year Trading Update

AptamerAnnouncement

05/02/2024 07:00

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RNS Number : 9436B  Aptamer Group PLC  05 February 2024

5 February 2024

Aptamer Group Plc

("Aptamer", the "Company" or the "Group")

 

Half year Trading Update

 

Aptamer Group plc (AIM: APTA), the developer of novel Optimer® binders to
enable innovation in the life sciences industry, today announces a trading
update for the six months ended 31 December 2023 (H1 24).

 

Pipeline Opportunities Now Converting into Signed Deals

Further to completion of the £3.6 million fundraise ("Fundraise") and Board
changes announced on 17 August 2023, along with the follow-on £0.3 million
Placing and Subscription of 19 September 2023, confidence in the Board's new
strategy continues to rise.  Substantial progress has been registered with
the building of a relatively long lead-time pipeline of opportunities, which
have now started to convert into signed deals.

 

As detailed in the trading update released on 6 November 2023, a lull in
customer confidence and limited availability of working capital in the lead-up
to completion of the Fundraise, meant that the Company's half-year revenue
figure to 31 December 2023 would be less than the comparative period (H1
FY23). Revenue for H1 FY24 is now anticipated to come in at approximately
£0.3 million (H1 FY23: £1.0 million).

 

The recent announcement of a material agreement with a genetic medicines
company for £0.5 million contributed to over £0.8 million of deals being
signed in December 2023, which culminates in over £1.4 million of signed
deals either being or to be processed through the laboratory. Since August
2023's change in management, negotiations across a pipeline of opportunities
with total contract values between £2.0 million in medium-term deals and
£8.0 million including longer-term deals remain ongoing. Approximately £1.5
million of the medium-term deals are considered advanced stage and there are a
further two longer-term opportunities of approximately £6 million with large
pharmaceutical companies that the Company hopes will crystalise into ongoing
strategic relationships.

 

The Company expects to progress the £1.4m of signed work and a proportion of
the additional £1.5m of advanced stage sales pipeline through the laboratory
before the end of the financial year, subject to target material being
delivered by customers in a timely manner and scientific attrition.
Accordingly, the Company expects to deliver less than market expectations, in
terms of fee-for-service revenue, for the full year.

 

In January 2024, HMRC accepted Aptamer's R&D tax credit claim for £0.5
million. Following receipt of these funds the month end cash balance for
January was £2.1 million. Having completed the reduction in its ongoing cost
base in September 2023, the Board considers this sufficient to provide a
runway well into FY25.

 

Strong Technical Progress Developing Binders for Gene Therapy and
Immunohistochemistry Markets

The research and development team has continued with their focus on two
specific areas, being: Optimer-based pharmaceuticals for gene therapy delivery
and precision chemotherapy and the Optimer-Fc platform for the
immunohistochemistry ("IHC") market, for which an additional £0.3 million was
raised in September 2023.

 

Firstly, as already announced, Aptamer has successfully developed drug
conjugates that form the basis of delivery vehicles for gene therapies,
radionuclides, and chemotherapeutic medicines. Recent results from a gene
therapy delivery partnership, with a top 15 pharmaceutical company, have
yielded data showing selective delivery and gene knockdown, leading to a
request from our partner for the manufacturing of Optimer material for their
own internal validation, with a view to licensing, if successful. The product
can be tailored for the delivery of multiple gene therapy or chemotherapeutic
conjugates, with a potential to form a series of novel pharmaceutical
entities.

 

Secondly, the development of the Optimer-Fc platform for IHC has led to the
first commercial contract in this field, signed in December 2023, and valued
at up to £147,500. Strong progress in discovery and validation has continued,
delivering new binders that demonstrate the performance of the Optimer-Fc
platform. Developed binders for IHC are now undergoing external validation by
a top 5 pharma company, with initial results reported as promising and leading
to a commercial request for more material. A patent application covering this
platform has now been submitted.

 

These two specific development areas, incorporating both diagnostic and
pharmaceutical applications, underpin the Company's new growth strategy; to
foster larger ongoing fee-for-service contract work with preferred partners,
thus pursuing a stable revenue stream, whilst developing both
partnership-ready diagnostic and drug-delivery platforms, and wholly owned
pharmaceutical candidates to target specific therapy areas.

 

Executive Chairman Steve Hull commented: "I am encouraged by the progress that
has been made since the Company was recapitalised in August 2023. In a short
period of time, the Company has substantially resized its cost base and
developed a significant new pipeline of opportunities that have started to
convert into signed deals that are now progressing through the laboratory. We
have also made strong technical progress in developing binders for gene
therapy delivery and IHC. Both technologies are now being pursued by named
pharmaceutical companies. We are grateful for the support shown by staff,
customers, and shareholders in helping the Company lay strong foundations in
the first half of this financial year. Management recognises that meeting
market expectations for the full year is unlikely, but might be possible if we
can convert the advanced pipeline and deliver current work in progress
successfully. We are fully committed to converting the pipeline of existing
and new opportunities to achieve sustainable revenue levels, whilst being
excited by the potential of our Optimer technologies to deliver commercial
milestone and licensing deals."

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

For further information, please contact:

 

Aptamer Group Plc
 
          +44 (0) 1904 217 404

Steve Hull

 

SPARK Advisory Partner Limited - Nominated Advisor
                +44 (0) 20 3368 3550

Andrew Emmott / Adam Dawes

 

Turner Pope Investments (TPI) Limited -
Broker
+44 (0) 20 3657 0050

James Pope / Andrew Thacker

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