The company behind a revolutionary test that screens for cancer has joined the stock market. Oncimmune (ONC:AIM) hit the headlines earlier this year when an NHS trial featuring its EarlyCDT-Lung blood test was picked up by national media.
The firm has now raised £11 million to expand its product range and give EarlyCDT-Lung a push into new markets including Asia.
Shares in Oncimmune nudged ahead 1.5p to 131.5p on its first day as a quoted business (18 May).
EarlyCDT-Lung has so far sold more than 140,000 units since being launched in 2012 in the US. The company intends to develop EarlyCDT tests for liver and ovarian cancer within the next two years.
Oncimmune is a loss-making company with only marginal revenue. It reported sales of £371,624 for the 10 months to 31 March 2016.
The business believes it has the potential to become profitable in the growing cancer diagnostic products sector, which is estimated to be worth $170 billion in 2020.
The company’s admission documents flags investment risks including intellectual property, competition and legislation and regulation changes, all of which could have an adverse effect if it related to the testing of human blood or serum as part of diagnostics.
Investors need to be aware that product development of cancer detection products can be lengthy and suffer delays and cost overruns, and new products may become obsolete due to competition.
Oncimmune doesn’t intend to pay any dividends as it plans to retain future earnings to finance the development of the business, although this may be revised in the future.