Biotech group Yourgene delivers record revenues and early appointment of chair

Manchester biotech group Yourgene Health reported record annual revenues today, and said its first quarter trading for 2023 has returned to pre-pandemic growth rates.

The provider of COVID-19 and non-invasive pre-natal testing (NIPT) products for Down’s syndrome and other genetic disorders, also announced the early appointment of Dr John Brown as chairman with immediate effect.

Revenues for the year to March 31, 2022, were £37.6m, up 105% and ahead of previously upgraded expectations.

A pre-tax loss of £3.2m was a significant improvement on the £12m deficit the previous year.

The group has invested £3.5m of cash in its growth strategy, and ended the year with £8.4m in cash, compared with £7m in 2021.

Yourgene said its performance for fiscal year 2022 reflects the significant revenue growth delivered from COVID-related products and services, as well as a return to growth in its core business.

The strong financial performance has allowed it to invest further in creating a broader platform or products and services to serve a wider, global customer base, focused on accelerating growth across genomic services, NIPT, Ranger Technology and PCR testing.

During the reporting period the group received National Microbiology Framework awards for COVID-19 PCR testing and variant sequencing services.

It opened new Yourgene Health Canada facilities to support future growth of Ranger Technology, while it created a US strategic partnership for NIPT with Ambry Genetics and expanded market access to the oncology portfolio for Yourgene Genomic Services.

It also secured two supply contracts with US diagnostic majors for Ranger Technology which are now validated and using the technology in routine clinical testing.

The group also achieved expansion of its geographical reach with indirect distribution channels strengthened in the Middle East, Africa and Eastern Europe and commercial teams strengthened in APAC, Americas and EMEA.

Following the end of the financial year, Yourgene said its strategic partnership with Ambry Genetics has been extended to the oncology services portfolio offering in Europe.

The Yourgene Genomic Services received ISO 15189:2012 accreditation for UK laboratories, and it said its business restructuring is now complete. The group’s platform has been reshaped to deliver growth within the core portfolio across Yourgene’s operating footprint.

Chief executive, Lyn Rees, said: “We are greatly encouraged by the performance of the business over the last 12 months.

“We have delivered record revenues as a result of high demand for our COVID-related products and services, and we have been able to invest the resultant proceeds towards enhancing the growth drivers for our core markets opportunities.

“Yourgene has progressed significantly over the last few years, and we remain focused on our long term growth strategy, despite some of the challenges faced over the last two years.”

He added: “Looking forward we are now established as a growing force in genomic testing with a team of nearly 200 staff with a strong and increasing presence in key overseas geographies including North America, Europe and Asia.

“We have diverse revenue streams built on proprietary technologies and growth opportunities across cell-free DNA applications such as NIPT, oncology, reproductive health and infectious disease.

“Our core business is now back to being a stable platform from which to deliver growth, building on the progress in the first quarter. Yourgene has a unique opportunity to benefit from the more significant growth rates available from the expanded range of market segments in which we operate.”

The appointment of new chair, Dr Brown, was announced on April 26, and was expected to take effect at the company’s upcoming AGM in September 2022.

He has been a non-executive director and the senior independent director of the company since he joined Yourgene’s board in July 2019, which has given him a deep knowledge of the business and accelerated the transition process.

As a result, the board is pleased to confirm his appointment ahead of schedule to guide the business as it enters its next stage of growth and development. Adam Reynolds will remain a non-executive director, as communicated in April and this transition also takes place with immediate effect.

Dr John Brown

John has more than 20 years’ capital markets experience in the healthcare and life sciences sector. He is currently chairman of Calcivis and a NED of Skylark Therapeutics. Until recently, he was senior independent director of Acacia Pharma and chairman of the Cell and Gene Therapy Catapult.

Additionally, he has previous significant board experience with roles including chairman of Axis-Shield and BTG, senior non-executive director of Vectura and chief executive of Acambis.

He said: “Having been part of Yourgene the past three years in the capacity of non-executive director, I have seen the company diversify and grow and look forward to working with the board to execute on our strategic growth plan. I would like to take this opportunity to thank Adam for his stewardship and invaluable contribution to the group over the past eight years.”

Adam Reynolds said: “I am fully supportive of John’s appointment to succeed me as chairman as Yourgene embarks on the next phase of growth. I look forward to working with John and the rest of the board as we strive to leverage these strong foundations and deliver the shareholder returns we all desire.”