IXICO plc – IXI – Trading update

IXICO plc – IXI – Trading update

IXICO plc (AIM: IXI), the data analytics company delivering insights in neuroscience, today provides a trading update ahead of results for the six months ended 31 March 2021.

 

Highlights:

·    Revenues expected to be £4.9m for six months to 31 March 2021 (2020: £4.6m), representing 8% growth; 

·    £9.4m (2020: £4.0m) of contracts signed across several clients and neurological disease indications over the period;

·    Adjusted Order book* of £19.0m at 31 March 2021 (2020: £15.3m); and  

·    Strong cash balance of £7.0m (2020: £6.7m).

 

* Order book is contracted but unrecognised revenue adjusted down to provide the Company's best expectations of delivery.

 

The Company has delivered another strong six months of revenue growth and announced significant new contracts despite the impact that the COVID-19 pandemic has had on the clinical development sector. The new contracts cover nine different clients and five different neurological indications.  This success reflects momentum in the Company's commercially led growth strategy underpinned by the development of its AI analytics solutions. The performance extends the four-year period of continuous revenue growth as reported at the end of 2020, whilst achieving a strong ratio of new contract bookings to revenues.

 

On 23 March 2021, the Company announced that its largest client had stopped dosing participants in its phase III and open-label extension trials in Huntington's disease ('HD'). The client has now provided a revised protocol for these trials and, as anticipated, IXICO's safety and data analysis services will continue to be utilised to support further understanding of the trialled drug candidate data. Previously, the Company had indicated that the maximum impact on revenues could be c.£2.7m for the remaining period of FY21 and c.£5m in FY22.  Receipt of the revised protocol has enabled IXICO to estimate impact for 2021 as £0.7m and £2.8m for 2022, with a total of £7.1m removed from its order book through to 2024.  These estimates are subject to levels of patient reconsent, which is a requirement for the trial's continuation, and will be carefully monitored over the coming months.

 

Following this adjustment, the Company's order book at 31 March 2021 totalled £19.0m.

 

The Company's first half results will be released on 25 May 2021.

 

Giulio Cerroni, CEO of IXICO, said: "Considering the delays experienced in the past year to new trial start-ups (other than COVID-19 trials), we are particularly pleased with the increasing pace of new contract wins, combined with continued top-line growth reported for the first half of 2021. The resulting strong book to bill ratio for the period reflects both the resilience of our operating model which supports remote delivery of services and also the significant market opportunity being addressed by IXICO.

 

"The news in March that our largest client was no longer dosing patients in their late-stage HD trials was devastating for patients suffering with HD and the global HD research community. We must acknowledge that clinical trials do unfortunately fail as part of the clinical development process. The search will continue for a cure for HD with several new trials being initiated to address this terrible disease. IXICO's experience as a partner to the largest HD trials to date positions us ideally to support this pursuit.

 

"New commercial and scientific initiatives, such as our recently announced Microsoft partnership, will accelerate our development of new world-leading image analysis solutions, and streamlined, efficient and scalable operational delivery. Together with our strong balance sheet and order book, these place us in a good position to continue to invest in support of our medium to long term growth plans."

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