Diagnostics firm launches ‘refocussing’ plan as it looks to recover from £11m loss
A Nottingham-based immunodiagnostics company that reported losses of more than £11m for the 2022 financial year has moved to “refocus” after divesting two of its subsidiaries.
Back in February, Oncimmune Holdings told the London Stock Exchange it continued to face significant challenges in its operating environment and in financing after posting the shortfall for the 2022 financial year.
Profits at Oncimmune slipped from £2.86m to £1.83m in 2022 due to spiralling administrative costs and sustained investment in its ImmunoINSIGHTS business, prompting the company to sell its subsidiaries Oncimmune Limited and Oncimmune Europe to US firm Freenome in a deal worth £13m.
Oncimmune says the move has significantly strengthened its cash position and will provide ImmunoINSIGHTS with guaranteed minimum revenues for “at least” the next two years. It has also enabled the LSE-listed firm to restructure and partly repay a loan to IPF Partners.
Now, as Oncimmune gears up to refocus its commercial efforts towards higher value customers and its core services offering, CEO Dr Adam M Hill will step down as a director of the company. He will stay on in an advisory capacity while the search for a permanent successor takes place.
He said: “I am delighted to have had the opportunity to lead Oncimmune for the last five years. As I transition to a new opportunity, I look forward to seeing the new team drive the next stage of the organisation’s journey.”
Ron Kirschner, general counsel and company secretary, has been made interim CEO pending a permanent appointment.
Oncimmune’s refocussing plans include bolstering its commercial team in the US, deepening longstanding customer relationships, partnering with key technology suppliers on cross-selling opportunities, and “carefully controlling and optimally utilising” its operational cost base and overheads.
The company is also looking for more new faces to join its leadership team.
Alistair Macdonald, chair, said: “The board would like to thank Adam for his foresight, perseverance and hard work, often in challenging conditions, over the last five years. I also welcome Ron to his new role. Since joining Oncimmune three years ago, Ron has been an instrumental part of the company’s operational and strategic leadership, providing close support to the Board throughout. The board is grateful to Ron for stepping up to lead the company as it refocuses and as it builds a new senior executive team.”
“The board believes that the plan we set out today is the one best designed to capitalise on the Company’s resources and create value for all shareholders”, MacDonald added.
“Whilst the current headwinds in our sector are expected to lead to a tough end to our financial year ending August 2023, the board believes that the company now has a solid foundation in place from which to launch the new plan to deliver growth through FY2024 and beyond.”
Oncimmune was established in 2003 as a spin-out from the University of Nottingham.
