Oncimmune losses deepen, warns on revenue after partner talks collapse
Source - SMW
Immunodiagnostics group Oncimmune Holdings posted a deeper annual loss and cut its revenue expectations for the current year due to the collapse of talks with a potential partner.
Pre-tax losses for the year through May amounted to £6.3m, compared to losses of £5.3m on-year.
The company had been negotiating the terms of a distribution contract after a pilot distribution project with a 'major US pulmonology sales force' was completed in February.
The discussions had not reached a satisfactory conclusion, Oncimmune said.
'Whilst this is disappointing given the positive data points the pilot has produced, this arrangement now unlocks Oncimmune to focus more time on developing discussions with other US pulmonary salesforces,' it added.
'The inability to reach agreement with the original distribution partner and the subsequent decision to engage with additional potential partners will affect the timing of revenue related to such partnerships.'
'As a result, the company's revenue expectations for the current financial year are materially reduced by these events.'
For the just-completed year through May, revenue rose to £240k, up from £215k, but was more than offset by R&D and other expenses.
Oncimmune said it had also conducted a strategic review, which indicated it could unlock value from its assets by forming strategic partnerships 'across a breadth of applications, and with a range of partner companies.'
At 8:41am: (LON:ONC) Oncimmune Holdings Plc share price was -24.5p at 96.5p