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Oxford BioDynamics
("OBD" or the "Company" and, together with its subsidiaries, the "Group")
Commercial update on financial year ended 30 September 2024
Growth in test sales over the year, new sales model initiated and resources focused on PSE. Business restructured to maximise runway, with a material reduction in costs.
Oxford, UK - 14 October 2024 - Oxford BioDynamics, Plc (AIM: OBD, the Company), a precision clinical diagnostics company bringing specific and sensitive tests to the practice of medicine based on OBD's EpiSwitch® 3D genomics platform today issues a commercial update following its financial year ended 30 September 2024. The Company has also commenced steps to reduce the cost base and maximise the cash runway through a comprehensive review of the strategic options open to the Company.
EpiSwitch® CiRT
CiRT orders in the second half of the financial year were 25% increased on the first half. The final financial quarter ended with 95 tests for September, bringing the total number of tests ordered since launch to 1,266. A total of 671 tests were ordered in the financial year.
Following the launch of the PROWES Registry Study - a prospective observational study - at up to 12 sites across the US, with up to 2,500 patients to expedite the inclusion of CiRT into the National Comprehensive Cancer Network (NCCN) Guidelines - three regional study sites have been onboarded to date. CiRT tests carried out in the study are being run on normal commercial terms through our CLIA-accredited labs.
By the end of August, it was evident that the majority of CiRT orders were now coming through the PROWES initiative and that the CiRT test would need to be included in NCCN Guidelines before we could expect significant traction from oncologists. Consequently, the Company has been able to reallocate its field sales resources to growing orders for the PSE test, without increasing the cost base.
In the next financial year, the main focus of the Group's CiRT team will be on completion of patient enrolment into PROWES, alongside continuing to support those oncologists already using the test in their day-to-day practice.
The Group will also shortly begin running CiRT tests on blood samples from patients enrolled in a clinical trial of an immune checkpoint inhibitor in endometrial cancer, for a top 10 pharma company.
EpiSwitch® PSE
PSE has grown steadily with orders in the second half of the year increased by 86% to 483 tests (H1: 259 tests) and more than 90 tests ordered in each month in the last quarter to the end of September. Total tests ordered since launch to the end of the financial year were 747. The recent redeployment of sales resources from the CiRT vertical to the PSE vertical has increased the number of salespersons dedicated to PSE five-fold, without increasing costs. Retraining of sales staff began in the first week of September, with the expanded and newly focused PSE sales team deployed in the field in the first week of October.
Compared to CiRT, PSE has a much lower barrier to entry, because it already fits the American Urological Association (AUA)/NCCN guideline definition for prostate cancer screening. The expanded team, led by Dr Steve Arrivo, will focus on building on the traction gained so far for PSE in the concierge medicine space. Concierge practitioners are entrepreneurial, focused on patient outcomes and able to embrace innovation. Sales to such clinics are typically on a cash-pay basis. There are approximately 2,000 concierge clinics in the US which converts to an addressable market for this segment of circa 150,000 cash-pay tests per annum.
In addition, we have been reimbursed for PSE tests under our existing CPT/PLA code (0433U) by several US insurers including Humana, UHC, Medicare and Optum Health. In the UK, sales of the test have come through the Company's partnership with the Goodbody Clinic and from private clinics such as The London Clinic.
PSE has received a high level of attention within the industry because of its accuracy and ease of use. This has led to ongoing discussions with two of the leading diagnostic services companies in the US for a distribution deal that would widen access to the test and have the potential to add significant volume.
Strategy and funding
The Board acknowledges that access to capital in the UK market is limited and the burn rate of the Company has been high in order to get to its current position. In this context, the Board and management recognises the need to maximise the Company's cash runway, both in the short and longer term, and is initiating a series of cost-saving actions that will materially reduce the business's monthly cash cost base, whilst maintaining support for both CiRT and PSE as set out above.
The management team remains wholly confident in the inherent value of the Company's test products and its EpiSwitch platform and therefore, as part of these plans, directors, PDMRs and certain other senior staff have agreed to take 25% of their net pay in newly issued shares for the foreseeable future. Chief Executive Officer, Dr Jon Burrows will take 35% of his net pay in newly issued shares.
Notwithstanding the measures being taken to reduce the cost base, the Company will require additional cash resources by early Q1 of 2025. The Board has therefore launched a comprehensive review of the strategic options open to the Company. In addition to exploring available funding options, the review will consider a range of potential actions, including but not limited to a licensing or sale of Company assets - such as the EpiSwitch NST and EpiSwitch SCB tests - and a possible hive-off of the Company's US business into a separately funded entity. Currently, the strategic review does not envisage an offer for the Company under the City Code of Takeovers and Mergers. A further announcement regarding the outcome of the review will be provided in due course.
The Company expects to publish preliminary results for the year ended 30 September 2024 in January 2025, following the financial audit. A further commercial update on the first quarter of the 2025 financial year will be provided at that time.
-Ends-
For more information: |
RNS out -
Monies required by Q1 next year -
Not a good RNS - |
"Jon Burrows said."Therein lies the problem. |
And yet the share price is up you couldn't write it . Financing is die soon and will be at a big discount. Maybe 1p so today's news wasn't great at all and maybe it's because the price has already been agreed and sold into enough so trying to sucker Inna few last punters before it's announced |
Need new CEO. This current CEO is clueless how to run the company with a huge potential.
Either replace the CEO or it will going down into the toilet and administration looms. |
One of the most bizarre RNS I have ever seen.Instead of focusing on the financing impact of not winning the grant, they stick their head in the sand and write a long congratulations for the winning consortium.Instead what would have served investors better is an update on current trading and cash position, and be honest if further funds are now required. Truly shocking that management still continue to run this company foelr their benefit, and not for shareholders. The only positive news is that it looks like a new investor has popped up with >3%... One with experience in patents and IP (albeit not in biotech?). (i hold in the Boon fund) |
Ouch 1p todaythey pinned hopes on today's news and haven't got it so the share price will tank making raising money a nightmare . That could be the nail in the coffin here and admin imo |
A few getting sucked in before the inevitable raise at 1.5p . Silly sheep |
What rubbish are you talking about my apta average is 0.24p and a lot cheaper than the idiots saying they wouldn't be raising money . Now just waiting for the churn before it moves .I always expected having to wait months and happy to still hold there .
This it depends how much they raise as it won't last long with the losses they make . Fund raise is obviously coming and will wipe out lthers here . Not a fan of the bod here as they blow cash for fun and no control |
There's another example of the contrarian that I labelled you as.You bought in too early on Aptamer after months of talking it down, despite all of the signals saying it was inevitable that it would tank further. I'm not suggesting that you were wrong, but you've got some more pain to go there.Is 1.5 - 2p your buy in target here? |
Unfortunately the upcoming placing is going to wipe out holders here . They seem ignorant to spending cash ,haven't cut costs until the market grows and they achieve significant reviews and shareholders will pay the price again . Poor management . 1.5p placing it's looking like. |
"I tried the new blood test for prostate cancer – here’s what you need to know
The new EpiSwitch prostate screening test provides a lifesaving second opinion and potential peace of mind – but at the cost of £905"
Nice article in the Telegraph suggesting for those who have a positive PSA test it could be worth paying privately for the EpiSwitch test but at a cost of £905 it isn't going to be for everyone.
I am still interested in the potential but will continue to watch from the sidelines for now. |
Looks like a 1.5 or 2p placing coming here ouch |
Totally agreed you can see it's coming by the fall and could be very painful for existing holders . Something will come soon explaining the share price falling off a cliff |
Now on life support pending yet another dilutive raise to keep the lights on temporarily, £10m admin costs are ridiculous & unsustainable, its just a matter of time before it goes under & someone picks up the IP for a song |
Unfortunately looks like another discounted fund raise is coming here . The losses are simply far too high for a company generating very little revenue and some way from break even . Explains the share price falling off a cliff . Could be anything as low as 2p fund raise as they tend to leave it late . Decent product but poorly managed and spending far too much cash too quickly .
What's more alarming is they have not once looked to save money along the way and instead spent and lost millions for years . Total contempt for investors imo . |
In freefall while the management seem to do absolutely nothing but blow the cash they raised . Hard to find a positive spin really and why the share price continues to fall . Costs are simply far too high and not delivering revenue growth that is needed .will have to see what comes next another placing ,which looks most likely ,or a positive news event . |
Continues to fall ,hardly surprising,not much interest here and probably expecting another round of funding soon |
Not looking good and the cash won't last long before they need to think about raising again. Cash burn is to high given the lack of revenues and slow progress |
Have decided to exit and watch for now. |
"tevevubes" I presume is "the revenues" and "1w" months of cash is presumably "12" months.
I agree just over 12 months of cash if nothing happens and I expect we have about 6 months or so before the issue of funds starts to become an issue again.
The trades over the past week or so seem to suggest selling but the price movement suggests there is buying or a buy being filled. |
Not good news then. Cash burn here has always been high and raising funds in this market is painful and that's the concern here. The share price has fallen and wil continue to while they keep needing cash and tevevubes are not high enough to offset the losses. Unfortunately these type of sales are slow to grow and get to that level and so more funding needed.
They have about 1w months of cash to deliver something good now. What that may be remains to be seen. Keeping an eye on it though |
Doesn't look like it was successful so probably won't be any RNS to confirm. |
It looks like the MRC meeting dates might have been on 3 and 4 July.
If so, 10 working days from 4 July would be 18 July and if successful OBD should be notified tomorrow with possibly an RNS tomorrow or the day after. |
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