19 June 2017
Microsaic Systems plc
("Microsaic", "Microsaic Systems" or the "Company")
Microsaic Systems plc (AIM: MSYS), the developer of chip-based mass spectrometry ("MS") instruments designed to improve the efficiency of pharmaceutical R&D, announces the following unaudited trading update as it approaches the end of the six month period to 30 June 2017.
The Company advised the market on 13 December 2016 that it was experiencing difficult trading conditions in its existing markets for small-molecule detection, which were expected to influence 2017 performance. Trading conditions in the first six months of 2017 ("H1") in these markets have continued to be difficult and the Company now expects its H1 and full year 2017 revenue to be significantly lower than for 2016.
The projected short fall in revenue for H1 and full year 2017 is expected to be off-set by lower overheads as a result of cost reduction plans implemented in H1. The full year loss before tax is expected to be broadly in line with 2016.
In recognition of the challenging markets in small-molecule detection, and driven by the increasing trends for detection of larger molecules during biopharmaceutical manufacturing ("bioprocessing"), the Board devised and began implementing a revised strategy. This strategy is focused on the application of its unique miniaturised, point-of-analysis MS instrument (the 4000 MiD®) in high-value processes where cost of failure for pharmaceutical companies in particular is high and where regulation is demanding change.
Consequently, the Company is focusing its technical resources, and working with existing and potential new partners, targeting opportunities in bioprocessing for therapeutics and in the longer term for diagnostics.
Bioprocessing is a crucial stage in the production of biologic drugs, and aims to ensure that they are produced and purified correctly to retain the specific activity given their complex structures, without introducing harmful substances or degrading the biologic product.
Microsaic's strategy is to work with the key providers of bioprocessing equipment, and in particular those companies involved in biologic purification. The Company already has a collaboration agreement in place with a market leader in bioprocessing equipment and is nearing the end of the current phase of this collaboration; and from the Company's perspective, it is on course to deliver its milestones in the coming months. In addition, Microsaic is pursuing a pipeline of other collaborative and co-development opportunities.
Eric Yeatman, Interim Non-Executive Chairman, commented:
"Despite 2017 proving to be a difficult year in our traditional markets, we are very encouraged with the progress since our 21 March 2017 update, when we introduced our biopharma strategy, specifically around bioprocessing. We are engaging with several of the leading players in the global market for bioprocessing equipment, and are confident that the new strategic emphasis is opening significant opportunities for our unique technology. We do recognise, however, that it will take time to deliver revenue from these opportunities due to the lead time in developing and marketing new products. We will continue to keep shareholders updated on new developments."
• 4000 MiD® Family
The benefits of Microsaic's point of use MS technology, in combination with its patented innovation for on-line desalting, allows for the purification of biomolecules in real time. In doing so, analysis times can be reduced from days or weeks to minutes while offering the potential for significant savings on operational costs.
We are shortly releasing product with extended mass range and developments are in the pipeline to improve the performance further.
• PrepCon 5 software
PrepCon 5, a third-party software platform for chemical instrumentation, can now be used in conjunction with the 4000 MiD®. PrepCon 5 controls all functional aspects of the 4000 MiD's operation. In addition, the simple user interface allows the current status of the system to be monitored at any time.
· Clarity software
Clarity is an advanced Chromatography Data Station, now compatible with the 4000 MiD®, showcasing optional software modules for data acquisition, processing and instrument control. Its wide range of data acquisition interfaces allows connection to any liquid chromatograph.
• Triple Quad
The Company has developed a working prototype of an advanced "triple quadrupole", and is welcoming interest from partners for further product development and channels to market in applications including environmental and life sciences.
The Company is progressing in its search for a CEO; meanwhile the business will continue to be managed by the executive team of Glenn Tracey (Chief Operating Officer) and Bevan Metcalf (Finance Director).
The Board expects revenue for 2017 to be significantly below 2016 but the full year loss before tax should be broadly in line with 2016.
The Company's cash position at 31 May 2017 was £4.2 million. The Company is looking to extend its cash runway, through prudent financial management, co-development income and grants.
This announcement is released by Microsaic Systems plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR"), encompassing information relating to the trading update described herein, and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Bevan Metcalf, Finance Director.
Microsaic Systems plc
Glenn Tracey, COO
Bevan Metcalf, FD
+44 (0) 1483 751577
N+1 Singer (Nominated Adviser & Broker)
+44 (0)20 7496 3000
Citigate Dewe Rogerson (Financial PR)
+44 (0)20 7638 9571
About Microsaic Systems
Microsaic Systems plc (AIM: MSYS) is a high technology company developing chip-based, bench-top and point-of-analysis mass spectrometry ("MS") instruments that are designed to improve the efficiency of pharmaceutical R&D. The Company is working with established global life science companies to co-develop new solutions to improve productivity in the development of small molecule and novel biologic (peptides, antibodies) medicines. MS is a powerful method of analysis to enable earlier decision making relating to product identification, purity and bioactivity, and is the analytical technique of choice for biochemists across many industry sectors.
Microsaic's core product, the 4000 MiD®, is one of the smallest MS systems in the world, retaining the functionality of larger conventional MS systems, is easier to use by non-specialists, consumes less energy and has lower running costs. For more information, please go to www.microsaic.com.
This information is provided by RNS