The Company is pleased to announce that recognised revenues from services during the third quarter were the strongest this year and early evidence of a characteristically stronger fourth quarter suggests that the value of committed work orders in 2018 should be more than double that achieved in 2017. However, overall performance remains behind planand full year service revenues will likely be in line with the previous year reflecting the time taken to execute orders. Sales and marketing activities are prominent despite a limited budget, with high volumes of customer calls and requests for quotations as well as exhibitions in Germany, US, Denmark, UK and Spain during the fourth quarter.
Among projects completed recently was a study for e-therapeutics plc with whom the Company has recently established a preferred provider relationship. Raymond Barlow, CEO at e-therapeutics plc, endorsed the importance of this collaboration stating: “Proteomics provides a powerful means for us to differentiate our proprietary network-driven drug discovery approach and our first-in-class assets from existing technologies and drugs. After an objective and rigorous selection exercise we chose Proteome Sciences plc as our preferred partner and have been delighted with the speed of their services and the quality of the data provided”.
Demand for TMT® reagents remained high throughout the third quarter and continuing good performance is expected from the exclusive collaboration with Thermo Scientific.
Cost control remains important and spending is within budget despite an increase in TMT® manufacturing costs throughout 2018. Overall the Company expects an operating loss similar to 2017 as it continues to focus on developing its services platform. Cash reserves are comparable to those reported with the interim results and the Company benefits from the continued support of Vulpes Investment Management through its loan facility announced in July.
The Company is pleased to report that Randox has now initiated the clinical validation study for its stroke diagnostic array, which is based in part on the Company’s intellectual property (IP), and anticipates good progress over the coming months. In addition, a term sheet has been agreed with a small US-based start-up wishing to license the Company’s GST-P stroke biomarker IP to develop a point-of-care test for establishing time from stroke onset to guide the use of thrombolytic therapy.
Commenting on this update Jeremy Haigh, Chief Executive Officer of Proteome Sciences, said:
“The slower than anticipated adoption of our services platform, in terms of annually recognised revenues, is clearly disappointing but we are encouraged by the number and diversity of the new projects we have won, and by the strength of our order book which has the more than doubled this year. Several of these projects should ensure a positive start to 2019. Feedback from many of our customers, such as e-therapeutics plc, has endorsed the inherent value that can be realised from our proteomics workflows. Our focus is to convert these initial projects into reliable, follow on business at greater scale, and to improve our operational efficiency so that revenues can be generated more quickly from committed work orders; we continue to reshape and consolidate the business to achieve this. TMT® continues to deliver significant and predictable revenues and we look forward to making available the much anticipated higher-plex tags in 2019.”