Physiomics plc (AIM: PYC), a provider of technology-based solutions to predict the effects of cancer treatment regimens for the biopharma industry, today announces that its total income for the financial year ending 30 June 2021 is likely to be in the range of £700k-£800k and its loss after tax in the range of £170-200k. This is below market expectations and due to both COVID related project delays and to an increased focus on longer-term value-generating activities. The Company's cash position remains strong, and it is estimated that on 30 June 2021 its net asset position will be c.£1.1m, the majority of which is cash.
Although the biotech and pharma industries have not been impacted by COVID to the same extent as many other industries, the precautions taken by hospitals to reduce patient exposure to COVID-related risks has meant a number of trials either being suspended or experiencing slower recruitment. This has impacted the Company both in terms of delays to its own personalised PARTNER dosing study and associated NIHR funding and due to delays in client trials that have led to data being received by the Company later than expected. Despite this, the Directors continue to believe that the Company's shift in focus from mainly pre-clinical work to a mix that includes more higher-value clinical projects will lead to enhanced value as COVID-related pressures on healthcare systems moderate over the course of the rest of this calendar year.
The Directors also believe that the Company's selective engagement in activities that do not immediately generate revenue have the potential to deliver significant longer-term value. In particular, the initial work with TabulaRasa Healthcare® ("TRHC") to integrate Physiomics' personalised docetaxel model into TRHC's market-leading precision dosing solution, DoseMeRx is due to conclude within the next few months.
The Company is pleased to announce that, on 1 April 2021, it convened an advisory board meeting to discuss opportunities to grow both its core consulting and non-consulting businesses. The meeting was attended by the Directors of Physiomics, long-term consultant, Dr Hitesh Mistry, and external advisor and industry veteran, Dr Tim Corn. It is intended that advisory boards will be held on a regular basis, but at least annually and that further members with expertise in areas of interest will be added as required.
As announced in its Interim Results on 1 March 2021, the Company is actively considering how it could use its extensive capabilities in modelling, simulation, data analysis and AI techniques, to develop further innovative assets in collaboration with other partners, to complement its existing consulting and personalised medicine activities. Following extensive discussion, the advisory board identified a number of areas felt to have particular potential for the Company to explore further and the Directors have taken actions to investigate.
Directors have also ratified the hiring of a senior business development executive to increase the Company's capacity to secure new clients for its core consulting business. This search has already commenced and is expected to be completed by Q4 this year.
Dr Jim Millen, CEO, commented: "The pharmaceuticals and biotech industry has weathered the COVID storm better than many other sectors and industries, however it is not immune, and it is well known that trial delays have been a knock-on effect. We believe the impact on Physiomics will be temporary and we already see that clinical trials and patient recruitment are showing signs of returning to normality. We have continued to discuss with current clients a number of new projects and have also been in dialogue with a number of potential new clients."