REG - Diaceutics PLC - Trading Update and Notice of Results

DiaceuticsAnnouncement

25/07/2023 07:00

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RNS Number : 0252H  Diaceutics PLC  25 July 2023

25 July 2023

 

Diaceutics PLC - Trading Update and Notice of Results

 

Diaceutics delivers 32% revenue growth in first 6 months and reaffirms full
year outlook

 

Order book growth of 43% in H1 2023 providing good forward visibility

 

Business performing and growing with core DXRX platform adoption by large
pharma customers driving momentum

 

Market opportunity is significant and growing as global pharma accelerates the
shift to precision medicine to improve patient access, capture lost revenue
and increase profitability

 

Diaceutics becoming primary commercialisation partner for pharma launching
precision medicines, with 21 of the top 30 global pharma companies as
Diaceutics' customers

 

Strong balance sheet with cash of £17.9m - fully funded to execute
significant growth plans

 

 

Diaceutics PLC (https://www.diaceutics.com/)  (AIM: DXRX), a leading
technology and solutions provider to the pharmaceutical industry, today
announces a strong performance and continuing growth across its business for
the six months ended 30 June 2023.

 

Peter Keeling, Diaceutics' Chief Executive Officer, commented: "We are pleased
to report that the strong momentum we enjoyed in 2022 has continued into 2023
and delivered a very positive first half performance, with recurring revenue
and order book growth in line with our already ambitious expectations.
Encouragingly, we are also seeing more normal market conditions beginning to
return, with large pharma companies increasingly recognising the importance of
utilising our data technology in identifying candidate patients and improving
their commercial success. Our historic and continuing investment in the DXRX
platform is allowing us to take advantage of the significant and growing
market opportunity.

 

We remain confident in our proven growth strategy and in our ability to
perform and deliver future growth as we continue to hit our key milestones for
the DXRX platform expansion and introduce new products to profile and target
suitable patients. Most encouraging is the positive feedback we are receiving
from our clients as they increasingly use the DXRX platform to identify and
deliver therapies to patients in need worldwide."

 

Trading Update to 30 June 2023

During the period, Diaceutics delivered revenue, order book and recurring
revenue growth in line with the Company's already ambitious expectations and
today reaffirms its positive outlook for the full year 2023. The DXRX platform
enables Diaceutics' large pharma customers to derive significant commercial
success by delivering more effective therapies to patients more efficiently.

 

During the period, the Company announced that it secured a third multi-year
enterprise-wide engagement with a top 10 global pharma company for US$10.1
million over three years. An enterprise-wide engagement is characterised by a
customer deploying the DXRX platform across three or more of the precision
medicines in their portfolio.

 

Revenue grew 32% to £9.9 million in H1 2023 (H1 2022: £7.5 million, 25% on a
constant currency basis). Approximately 47% of revenues in the period were
recurring in nature (H1 2022: 37%). Order book visibility remains strong and
at 30 June 2023 was approx. £24.1 million, representing 43% growth in the
period (£16.9 million at 31 December 2022), with around £6.3 million
expected to be realised as revenue in H2 2023 and the remaining £17.8m in
2024 and beyond. Recurring revenue now represents 83% or £20.0 million of the
future order book.

 

Cash at 30 June 2023 was £17.9 million (31 December 2022: £19.8 million),
reflecting the acceleration in investment as announced by Diaceutics in its
January 2023 Strategy Update, and the Company has sufficient financial
resources in place to fully execute its ambitious growth plans.

 

Outlook

The opportunity available to Diaceutics is larger than ever and continues to
grow at pace. The successes of the year to date and the significant momentum
achieved across the period serve to validate the Group's growth strategy, with
trading in line with management expectations. The Board is confident that
Diaceutics can continue to expedite its growth strategy and seize the market
opportunity as we become the primary commercialisation partner for pharma and
biotech companies launching precision medicines.

 

Notice of Interim Results

The Company will report unaudited results for the six months ended 30 June
2023 on 26 September 2023.

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance
with the Company's obligations under Article 17 of MAR. The person responsible
for making this announcement on behalf of the Company is Nick Roberts, Chief
Financial Officer.

 

Enquiries:

 Diaceutics PLC                                        Tel: +44 (0)28 9040 6500
 Peter Keeling, Chief Executive Officer               investorrelations@diaceutics.com

 Ryan Keeling, Chief Innovation Officer

 Nick Roberts, Chief Financial Officer

 Stifel Nicolaus Europe Limited (Nomad & Broker)      Tel: +44 (0)20 7710 7600
 Ben Maddison
 Nick Harland

 Kate Hanshaw

 Alma PR                                              Tel: +44 (0)20 3405 0205
 Caroline Forde                                       diaceutics@almapr.co.uk
 Matthew Young
 Kinvara Verdon

 

About Diaceutics

At Diaceutics we believe that every patient should get the opportunity to
receive the right test and the right therapy to positively impact their
disease outcome. We provide the world's leading pharmaceutical and life
science companies with solutions and technology for the commercialisation
of their precision medicines, enabled by our proprietary DXRX platform.

 

DXRX is the world's first diagnostic commercialisation platform for precision
medicine, utilising a global network of affiliate laboratories to deliver
multiple pipelines of real-world healthcare data insights, advisory services
and innovative platform enabled solutions.

 

 

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