Physiomics' value surges and falls

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The share price of computational systems biology firm Physiomics PLC (LSE:PYC) surged following the announcement of a new contract with Eli Lilly. Leading to a 24% increase in share price to a two-month high of 0.37, the contract will see Physiomics working on projects to predict the outcome of cancer drugs.

Since then Physiomic’s share price has fallen back to below its pre-surge value of 0.31 to a six-month low of 0.295.

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Opening November as the AIM’s most heavily traded stock, the Oxford based firm develops models to predict and understand cancer drug efficacy from pre-clinical research to clinical development.

A NYSE listed and Fortune 500 firm, global pharmaceutical firm Eli Lilly is currently seeking to build its business in China, creating new opportunities for Physiomics. Viewed as a linchpin of growth, recent changes in China regarding intellectual property protection have increased western pharmaceutical companies’ interest in investing in the country.

“Springboard to attract new growth”

Commenting on the contract Physiomics Chief executive Dr Mark Chadwick argued that “the award of this contract further demonstrates the value of Virtual TumourTM in pre-clinical research” and that the company believes “that the award of this contract will act as a springboard to attract additional business.”

Along with a re-structuring of its Scientific Advisory Board, Physimoics recently confirmed that it has agreed to issue share options to each of its directors. A total of 6,466,252 share options over ordinary shares in the Company (“Share Options”) have now been granted and are exercisable at a price of 0.34p each.

When announcing 2011 final end results in October, Physiomics posted an operating loss of £693,795 and a decreased turnover of £53,345, compared to 2010 results of a £393,010 operating loss and £152,694 turnover. Commenting on the results the company stated that the 2011 figures were a result of “increased spend over the past year” after “futher validation studies” demonstrated that Physiomic technologies “can make the difference between success and failure of a new drug”.

References
 Proactive Investrors – Physiomics shares up 24 pct after new deal with Eli Lilly
 Physiomics – Two new projects in support of Lilly’s Oncology Programs
 Market Watch – Eli Lilly looks to China for growth
 Physiomics – Two new projects in support of Lilly’s Oncology Programs

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