-First-half revenue up 25%
-Increased adoption of platform representing 76% of revenues
-Improved quality and visibility of earnings
Diagnostic platform provider for precision medicines Diaceutics (DXRX:AIM) delivered 25% organic growth in revenues to £7.5 million for the six months to 30 June driven by strong adoption of its digital products and services.
The penetration of data and TES (technology enabled service) products and services increased 52% to £5.7 million representing 76% of total revenues up from 63% in the first half of 2021.
The target adoption rate has been achieved in under two years from launch of the platform and delivered a year ahead of expectations.
As well as adding new customers the company signed 13 new multi-year subscription-based contracts with large pharma, increasing the quality and visibility of revenues.
The company increased the number of labs by 42% to 777 labs across 38 countries and added 110 million patient data records bringing the total to 600 million.
Adjusted first half EBITDA (earnings before interest, taxes, depreciation, and amortization) was flat at £0.3 million reflecting investment in sales and marketing as well as a return to US conferences which increased travel expenses.
CEO Peter Keeling commented: ‘As Pharma's investment in precision medicine returns to pre pandemic levels, we are optimistic that Diaceutics is well positioned to outperform market growth rates as we grow our innovative product portfolio and build upon our leadership position.’
The shares fell 1.3% to 91.3p and are down around 11% year to date.
WHAT DOES DIACEUTICS DO?
Studies have shown that around half of patients are denied access to drugs due to diagnostic hurdles.
Diaceutics aims to break down the hurdles by providing the world's leading pharmaceutical companies with an end-to-end solution for the launch of precision medicine diagnostics enabled by its DXRX platform.
EXPERT VIEW
Stifel commented: ‘Diaceutics is now able to demonstrate that lifetime spend levels across the top therapy brands is increasing, with the top five brands having now spent between $3.8m and $7.8m with Diaceutics over a 6-7-year period.
‘This indicates that the target of extracting $10-15m per brand over a typical launch cycle should be achievable.’
