Physiomics PLC on Tuesday announced that its revenue was hampered by pressure resulting from low biotechnology funding.

Physiomics is a London-based oncology consultancy, which uses mathematical models to support the development of cancer treatment regimens and personalised medicine solutions.

The company noted that Germany-based Merck KGaA, a key client, was streamlining its US operations near Boston, Massachusetts. ‘Although Physiomics continues to have active projects with Merck, this internal reorganisation has led to a number of anticipated projects not being commissioned within the current financial year which will lead to a shortfall in revenue compared to that budgeted for this client,’ Physiomics explained.

Following, the company has sought diversification, with the proportion of revenue derived from its largest customer contracting to less than 40% in the first half of financial 2023 from 80% in financial 2019.

Physiomics expects its total income for the current financial year ending June 30 to be about £750,000, down 17% from £900,707 a year prior.

Chair & Chief Executive Officer Jim Millen said: ‘Despite the current challenges faced by biotech companies, there continues to be a strong demand for modelling and simulation services and our progress in diversifying our client base is mitigating the effects of a reduction in revenue from a single large client. In parallel with the organic growth of our current consulting business, we are actively exploring a number of strategic initiatives that we believe could add significant value from FY24 onwards.’

Physiomics shares fell 25% to 2.80 pence each in London on Tuesday morning.

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