NetScientific PLC (LON:NSCI) said after a year of development, the focus in 2017 will be on boosting the value of its healthcare companies portfolio.
“We focused on delivering the individual development milestones within each of our portfolio companies, paving the way in 2017 for continued progress and maturation of our investments,” said Francois Martelet, chief executive officer of NetScientific.
Much of the effort this year will go on enhancing the competitiveness and value of the existing individual portfolio companies, though the board will also continue to evaluate new pipeline opportunities.
Preparing for lift-off
As an incubator fund, a lot of the companies in the NetScientific portfolio are in the pre-revenue stage, so it should be no surprise that the company posted a loss of 2016, though at £12.39mln the loss was less than the £14.72mln loss analysts were predicting, albeit wider than the £10.42mln loss registered in 2015.
Revenue in 2016 was a nominal £518,000, up from £21,000 the year before.
A number of the group’s portfolio companies are either in the early stages of commercialising their IP or are poised to enter it. Indeed, Vortex Biosciences, which is developing a novel liquid biopsy technology that aims to revolutionise cancer diagnosis, launched its first product, the VTX-1 instrument, at Tri-Conference on Molecular Medicine on 21 February 2017.
- Read NetScientific hails commercial launch of breakthrough cancer detection device
- Read NetScientific buoyed by Vortex’s tech endorsement
Cash on the balance sheet as at 31 December 2016 was £9.5 million (2015: £23.2 million). Cash used in operations, was £12.9 million (2015: £10.7 million).
“We continue to believe that we have a world-class portfolio of companies, experienced and relevant management teams and the business and financing strategies to support their development and attract the necessary third-party validation capital,” said Sir Richard Sykes, non-executive chairman of the group.
Shares in NetScientific fell 5.5p to 52p on the release of the results.