THE boss of Belfast-based publicly traded research firm Fusion Antibodies has pointed to “significant headwinds” in the biotech sector which has led to number of clients delaying projects with the company.
Chief executive Dr Adrian Kinkaid was speaking as the AIM-listed diagnostic specialist, in interim results for the six months to the end of September, revealed a marked drop in sales as its losses increased.
Fusion Antibodies, an early discovery contract research organisation (CRO) founded in 2001 as a spin-out from Queen’s University Belfast, specialises in pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications.
Revenues over the half year dropped from £1.9 million in the previous year to just £541,000 while its losses rose from £1.1m to £1.4m.
Expenditure on research and development fell by 60% to £180,000 from £450,000 previously, but there was an improvement in Fusion's cash position, which at September 30 sat at £500,000 compared to £200,000 at the end of the first half of the year.
Operationally, Fusion - which appointed Stephen Smyth as interim chief finance officer - said it increased the numbers of commercial opportunities identified, while its pipeline valuation improved.
Progress was made in the development of its OptiMAL new mammalian antibody library, with demonstration of whole IgG antibodies expressed on the cell surface.
But it warned that a number of projects were delayed by clients as they seek further investment, adding that its full-year results are expected to be “significantly weighted towards the second half of the year”.
In March Fusion completed what is said was a "difficult" restructuring process, which has involved a new share placing to raise funds, and where some directors accepted shares in lieu of their salaries.
Mr Kinkaid said: “During this calendar year, the industry has been experiencing significant headwinds especially in the venture capital-funded biotech sector. and a number of clients have consequently delayed initiating their projects with us.
“Nonetheless, we have generated a significantly stronger pipeline which includes a wider diversity of clients that are less dependent on VC funding.
“Consequently, whilst overall revenues for the period are low as previously announced, through our efforts we have benefitted from a trend of increasing month-on-month revenues throughout the first half trading period, which we hope will continue to strengthen in the remainder H2 and beyond.”
He added: “It is particularly encouraging to see our newer offerings also being well received with our first AI/ML-AbTM contract being successfully completed and, post-period end, securing the agreement with the NCI to help validate OptiMAL.
“Both of these developments are having a positive impact on market awareness and engagement.”
