REG - Fusion Antibodies - Trading update

Fusion AntibodiesAnnouncement

04/07/2024 07:00

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RNS Number : 0667V  Fusion Antibodies PLC  04 July 2024

4 July 2024

 

Fusion Antibodies plc

("Fusion" or the "Company")

 

Trading update

 

Fusion Antibodies plc (AIM: FAB), specialists in pre-clinical antibody
discovery, engineering and supply for both therapeutic drug and diagnostic
applications, provides an update on trading, commercial and research progress.

 

Highlights

 

·    Positive momentum through the first quarter of the current financial
year ending 31 March 2025 ("Q1 FY2025"), including:

 

o  first OptiPhage(TM) contract for a non-human antibody species received in
April 2024;

 

o  ongoing collaboration agreement with the National Cancer Institute ("NCI")
for the use of OptiMAL®;

 

o  further purchase orders received under a master services agreement ("MSA")
with a leading diagnostics company;

 

o  multiple therapeutics project running in parallel with a US based
biotechnology client; and

 

o  an increasingly positive sentiment amongst the industry and client base.

 

·    Unaudited revenues for Q1 FY2025 of c. £522k (Q1 FY2024: £241k,
FY2024: £1.14m)

 

·    Consistent and strong sales pipeline, with an order book at 30 June
2024 of approximately £0.7m. The order book includes a number of multi-stage
projects for its clients and, subject to these projects progressing in line
with expectations, revenue is expected to be recognised for all projects in
the current order book in the current financial year.

 

·    The Company continues to carefully control its cash and, as set out
at the time of the fundraise in February 2024, based on internal estimations
the Company has a cash runway into the second quarter of calendar year 2025.
The Company continues to seek to achieve cash neutrality during that
timeframe.

 

Entering into FY2025, Fusion had built an improved order book and was starting
to benefit from its improved commercial strategy of additionally targeting
diagnostics, fundamental research and veterinary medicine markets. The Board
is pleased to confirm that the marked increase in the Company's sales
opportunity pipeline, as reported in its full year trading update on 30 April
2024 has been maintained.

 

The Company is continuing to progress a number of exciting developments,
including but not limited to:

 

·    securing its first OptiPhage(TM) contract whereby Fusion will design
a phage display library using the diversity principles behind the OptiMAL®
library.

 

·    progressing the collaboration with the NCI for the use of
OptiMAL® in the discovery of novel antibodies against targets selected by
NCI post year end;

 

·    progressing the previously announced major projects in line with the
agreed project plans; specifically, the $650,000 follow-on project under a
collaborative research and development agreement with a US based biotechnology
company that Fusion started working with in 2021 and the further £200,000
project announced on 23 May 2024;

 

·    progressing multiple further projects, covered by the respective
purchase orders mentioned above, under the new MSA with a leading diagnostic
company; and

 

·    ongoing progress of the AI/ML research project with Oxford University
to develop software to predict antibody expression levels and aid in the
design of antibody sequences which, if successful, could improve productivity
and success for our clients in the long term.

 

The board of directors of Fusion believe that these developments provide
strong evidence that the Company's commercial and diversification strategies,
together with the improving economic climate and client sentiment, provide
continuing confidence for growth in the remainder of FY2025.

 

Adrian Kinkaid, CEO of Fusion, commented: "We are on track and on plan. It is
particularly encouraging to see the continuing improvement in revenue
recognition rates which are supported by further new orders and work in
progress. This validates our strategy and puts us on track to meet our plans
to ensure that Fusion is not only sustainable but becomes the thriving
business which it deserves to be."

 

Enquiries:

 

 Fusion Antibodies plc                                               www.fusionantibodies.com
 Adrian Kinkaid, Chief Executive Officer                             Via Walbrook PR

 Stephen Smyth, Chief Financial Officer

 Allenby Capital Limited                                             Tel: +44 (0) 20 3328 5656
 James Reeve/Vivek Bhardwaj (Corporate Finance)

 Tony Quirke/Joscelin Pinnington (Sales and Corporate Broking)

 Shard Capital Partners LLP
 Damon Heath (Joint Broker)                                          Tel: +44 (0) 207 186 9952

 Walbrook PR                       Tel: +44 (0)20 7933 8780 or fusion@walbrookpr.com
 Anna Dunphy                                                         Mob: +44 (0)7876 741 001

 

 

About Fusion Antibodies plc

 

Fusion is a Belfast based contract research organisation ("CRO") providing a
range of antibody engineering services for the development of antibodies for
both therapeutic drug and diagnostic applications.

 

The Company's ordinary shares were admitted to trading on AIM on 18 December
2017. Fusion provides a broad range of services in antibody generation,
development, production, characterisation and optimisation. These services
include antigen expression, antibody production, purification and sequencing,
antibody humanisation using Fusion's proprietary CDRx (TM) platform and the
production of antibody generating stable cell lines to provide material for
use in clinical trials. Since 2012, the Company has successfully sequenced
and expressed over 250 antibodies and successfully completed over 200
humanisation projects and has an international, blue-chip client base, which
has included eight of the top 10 global pharmaceutical companies by revenue.

 

The Company was established in 2001 as a spin out from Queen's University
Belfast. The Company's mission is to enable pharmaceutical and diagnostic
companies to develop innovative products in a timely and cost-effective manner
for the benefit of the global healthcare industry. Fusion Antibodies provides
a broad range of services in antibody generation, development, production,
characterisation and optimisation.

 

Fusion Antibodies growth strategy is based on combining the latest
technological advances with cutting edge science to deliver new platforms that
will enable Pharma and Biotech companies get to the clinic faster, with the
optimal drug candidate and ultimately speed up the drug development process.

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