Nottingham diagnostics firm sees share price crash after posting £11.5m loss
Shares in Nottingham-based immunodiagnostics company Oncimmune Holdings tanked on Monday (February 27) after the firm reported losses of £11.52m and warned that “challenges remain in [its] operating environment and in financing.”
Oncimmune’s share price was hovering around the 55p mark at the close of trading on Friday, but slumped to lows of around 37p – a c. 30% drop – less than an hour after the company revealed the shortfall, which was some £6m larger than the loss it reported in 2021.
The firm’s share price closed at 38.1p, capping a miserable day for investors.
The company told the London Stock Exchange that significant investment in its ImmunoINSIGHTS division had hit its bottom line last year, with profits slumping from £2.86m to £1.83m.
Meanwhile, Oncimmune’s administrative expenses skyrocketed to £.8.7m – up from £5.65m – due to planned investment in the ImmunoINSIGHTS commercial team. Its net debt for the 2022 financial year was £9.2m.
In a statement, Oncimmune said it expected to perform “in line with previously reported expectations” and be cashflow positive this year, but the announcement clearly spooked investors.
Oncimmune CEO Dr Adam M Hill said: “FY2022 was a period of investment in the ImmunoINSIGHTS platform following a successful, oversubscribed fundraise in March 2021, which allowed us to evolve our offering, substantially increase capacity and drive our pipeline.
“The ImmunoINSIGHTS business is now seeing improving growth in the first half of this financial year and has a growing number of contracts. Whilst short-term challenges remain in the operating environment and in financing, the Board is determined to meet these and to enable conversion of the growing pipeline of opportunities to deliver the significant returns available from our differentiated offering and expertise.”
