Strong pipeline provides optimistic outlook for biotech group

Life sciences business, Aptamer Group, expects its revenues for the first half of 2023 to be about £1m.

Publishing a trading update for the six months ended 31 December 2022, the York-based company notes its revenues are generally expected to be second half weighted due to “typical seasonality of customer budgets.”

And it explains this pattern has been exacerbated in 2022 due to factors including customer delays and general economic conditions.

However, Aptamer Group adds it has good visibility on its commercial pipeline going into the second half, including a further £1m of current signed orders, as well as contracts in negotiation and strong expressions of interest across all three of its business units.

The business, which develops Optimer ® binders that can be used as synthetic alternatives to antibodies, says it remains focused on delivering market expectations for the full year.

It acknowledges headwinds experienced in the first half may continue into 2023 and that revenue for the full year may fall below market expectations, but should still be materially ahead of the level achieved last financial year.

Dr Arron Tolley, chief executive officer, said: “Our highly active deal pipeline demonstrates the clear market opportunity and demand for Optimers across the life sciences industry.

“In the current challenging economic environment, by offering our customers significant cost savings as they develop therapies and diagnostic products and conduct research activities, we expect to generate increasing revenue through paid R&D activities, IP licensing deals and success-based milestone payments.

“We look forward to providing further updates to the market as these opportunities convert.”