Revenue drop warning at life sciences business as it cuts costs
York-based life sciences firm, Aptamer Group, has today warned its full year revenues are likely to be materially below its results for FY2022, in a trading update for the year ending 30 June 2023.
The company says its revenue for the 10 months ended 30 April 2023 was about £1.4m (unaudited), and its existing pipeline of new business has taken longer than expected to convert, especially licensing and royalty-based contracts, against a backdrop of continuing market headwinds.
As of 30 April 2023, the group cash balance was £0.7m.
Aptamer’s update adds: “The group is making cost savings in order to extend the cash runway. As noted in the half year results, continuing reduced revenues would mean that the group would need to raise working capital.
“The Board is exploring a range of funding options including non-dilutive and dilutive sources to strengthen the balance sheet, which would also provide a stronger negotiating position with potential new business opportunities.”
The business, which develops Optimer ® binders that can be used as synthetic alternatives to antibodies, says its sales pipeline remains healthy across both fee-for-service and licensing.
But while the group expects some of this to be recognised as revenue in the current financial year, the majority, if converted, will fall into the next financial year.