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UPDATE - Abzena makes a confident start to life as quoted life sciences firm

Last updated: 08:09 08 Jun 2015 BST, First published: 10:48 08 Jun 2015 BST

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Under the microscope: Broker Cenkos is happy with Abzena's progress since float.
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Prelims from the ambitious life sciences firm Abzena (LON:ABZA) reveal it managed to maintain its clinical and commercial momentum while listing on the stock exchange’s junior market.
 
It revealed that three antibody candidates had entered clinical development, bringing the total to eight.
 
It also completed 129 service projects for more than 80 customers and entered into eight agreements with the potential to generate future milestones and royalty payments.
 
Abzena is the amalgam of three companies: PolyTherics, an Imperial College and UCL spin-out; Antitope, founded by the firm’s chief scientific officer, Dr Matthew Baker; and Warwick Effects Polymers.
 
Its technologies and pre-clinical services enable biopharmaceutical companies to produce better and hopefully more efficacious drug candidates.
 
It has a platform that screens for unwanted immune responses in antibodies and, where it is possible, fixes the glitch.
 
It also produces antibody drug conjugates, which in very simple terms are targeted treatments for diseases such as cancer.
 
In layman’s terms, it creates a silver-bullet type treatment that might carry a payload such as chemotherapy that targets a specific tumour.
 
As mentioned earlier, Abzena’s is a hybrid model. So, it offers its expertise as a service to pharma and biotech companies allowing it to generate revenues.
 
Where its intellectual property is then used to modify and improve an antibody it will negotiate a licence agreement.
 
This might entitle the company to milestone payments and ultimately a royalty on sales if that treatment makes it to the market.
 
Abzena listed last July, raising £20mln. The results revealed it had £15.8mln at the year-end. 
 
It generated revenues of £5.7mln in the 12 months to March 31 and, unsurprisingly for a biotech at this formative stage of its development, it posted a loss of £4.7mln. It spent £3mln on research and development.
 
Brokers expect the firm to break even in 2018.
 
There have been a number of highlights that have come after the period end, including the decision by American giant Gilead Sciences to take Abzena human composite antibody GS-5745 into phase III clinical trials for gastric cancer late this year. 
 
Chief executive John Burt told investors: “We are gaining greater traction with our next generation technologies for antibody drug conjugates, an area with significant medical and commercial potential. We can look forward with confidence to the coming years."
 
The shares rose 1% to 86.78p, valuing the business £84.3mln.

Broker Cenkos said the results were in line with expectations as it said it is leaving its 2016 and 2017 forecasts unchanged.

However it added: “Since the IPO business momentum has accelerated.

“We believe that Abzena is an exciting business operating in a rapidly growing market and we look forward to further products developed with Abzena technology entering clinical development in the coming year.

“The multiple technology platforms are enjoying major industry buy-in from both pharmaceuticals and biotechnology companies, providing for an exciting future and significant returns for shareholders.”

 

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