Full year results: a year of transition - revenue growth driven by investment programme - Abzena

Full year results: a year of transition – revenue growth driven by investment programme

Cambridge, UK, 4 June 2018 – Abzena plc (AIM: ABZA, ‘Abzena’ or the ‘Group’), a life sciences group providing services and technologies enabling the development and manufacture of biopharmaceutical products, has published its full year results for the year to 31 March 2018.

Corporate summary

  • FY18 was a year of transition; ambitious growth targets set at start of year missed, but significant investment and progress has been made to broaden and integrate the Group’s offering
  • Increasing customer engagement with integrated discovery, development and manufacturing service offering
  • Investment programme implemented to create state-of-the-art biopharmaceutical manufacturing facilities
  • Consolidation of UK scientific operations into new purpose-built facility
  • Preferred supplier agreement with leading biomanufacturing process solution provider has enabled upgrading of platform for biopharmaceutical process development and manufacturing
  • ABZENA Inside licence deals secured with a US biotech company, OBI Pharma and Telix Pharmaceuticals
  • ABZENA Inside product, BIVV009, progressed into Phase III clinical studies

Financial summary

  • Revenue increased 18% to £22.0 million (FY17: £18.7 million)
    • 60% increase in biomanufacturing revenues (FY18: £8.5 million; FY17: £5.3 million)
    • 15% increase in chemistry revenues (FY18: £8.0 million; FY17: £7.0 million)
    • 14% decrease in biology research services revenue (FY18: £4.9 million; FY17: £5.7 million)
    • Second half revenue stronger (H2 18: £12.3 million; H1 18: £9.6 million)
  • Operating loss increased to £14.9 million (FY17: £9.7 million)
  • Adjusted EBITDA loss increased to £12.0 million (FY17: £7.5 million)
    • Reduced adjusted EBITDA loss in second half (H2 18: £5.0 million; H1 18: £7.0 million)
  • Reported loss increased to £14.2 million (FY17: £9.1 million)
  • £23.9 million (net) additional funding raised in April 2017
  • £6.0 million property & equipment capital expenditure (FY17: £4.2 million)
  • Cash at year end of £6.8 million (FY17: £4.1 million)

Post-period events

  • Appointment of Interim Chief Operating Officer to drive operational effectiveness as Group pursues path to profitability
  • Implementation of cost reduction programme, anticipated to reduce operating costs by circa £2.0 million (8%) on an annualised basis.
  • J. Smith, CFO, will leave the Group during 2018, stepping down from the Board in July 2018.

John Burt, Abzena’s CEO, commented:

“This year has been one of transition for Abzena. Although our original ambitious growth targets for the year were not achieved, we are starting to see the benefits of our capital investment programme, the current phase of which has now been substantially completed.”

“With an experienced COO in place, we are actively driving operational efficiencies and a planned reduction in capital expenditure whilst focusing on aligning the Group’s resources and infrastructure to match customer demand.”

“We have seen increased customer engagement in the second half of the year with our expanded service offering which leaves us well positioned for the coming year with a significant volume of committed forward contracts. The strong revenue growth in our manufacturing division is particularly encouraging and validates our strategy to provide partners with seamless discovery, development and manufacturing services.”

“Momentum from the second half continuing into 2019, with growth in this current year expected to be second half weighted as projects mature through the Group’s combined service offering.

”We are focused on driving revenue and margin growth to become a sustainable service business. We are pleased to offer our combined services to a fast-growing industry, creating an ever more varied portfolio of biopharmaceutical products.”

The full results are available here.

Enquiries:

Abzena plc

John Burt, Chief Executive Officer

Julian Smith, Chief Financial Officer

Michelle Neaves, Director of Planning & Analysis

+44 1223 903498
Numis (Nominated Adviser and Broker)

Clare Terlouw / James Black / Paul Gillam

+44 20 7260 1000
N+1 Singer (Joint Broker)

Aubrey Powell / Liz Yong

+44 20 7496 3000
Instinctif Partners

Melanie Toyne Sewell / Rozi Morris / Alex Shaw

+44 20 7457 2020

abzena@instinctif.com

About Abzena

Abzena (AIM: ABZA) provides proprietary technologies and complementary services to enable the development and manufacture of biopharmaceutical products.

The term ‘ABZENA Inside‘ is used by Abzena to describe products that have been created using its proprietary technologies and are being developed by its partners, and include Composite Human Antibodies™ and ThioBridge™ Antibody Drug Conjugates (ADCs). Abzena has the potential to earn future licence fees, milestone payments and/or royalties on ‘ABZENA Inside‘ products.

Abzena offers the following services and technologies across its principal sites in Cambridge (UK), San Diego, California (USA) and Bristol, Pennsylvania (USA):

  • Biology research services, including immunogenicity assessment of candidate biopharmaceutical products and bioassay development;
  • Protein engineering to optimise biopharmaceutical product candidates, including humanization and deimmunization of antibodies and other therapeutic proteins;
  • Cell line development for the manufacture of recombinant proteins and antibodies;
  • Contract process development and GMP manufacture of biopharmaceuticals, including monoclonal antibodies and other recombinant proteins for preclinical and clinical studies;
  • Contract synthetic chemistry and bioconjugation research services, focused on antibody-drug conjugates (ADCs);
  • Proprietary site-specific conjugation technologies and novel payloads for ADC development;
  • GMP manufacturer of ADC linkers, payloads & combined linker-payloads; and
  • GMP analytical services for biopharmaceutical manufacturing projects.
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