Sign up United Kingdom
Proactive Investors - Run By Investors For Investors
Why invest in IXI?

IXICO trading ahead of expectations as digital tech permeates neuroscience sector

IXICO is actively supporting the hunt for breakthrough treatments for Alzheimer’s, Parkinson’s, Huntington’s and multiple sclerosis
mri scanner
The company's technology manages and helps interpret images from MRI and positron emission tomography as well as collating and making sense of biosensor data

A recent run of contract wins for IXICO Plc (LON:IXI) reveals a growing adoption of digital technologies in medical imaging it uses to support clinical trials of new medicines in neuroscience.

The latest contract, in September, was worth £9.1mln to provide insight from magnetic resonance imaging (MRI) data to assist in a Phase III clinical trial for a drug to treat Huntington's disease.

Huntington’s is one of five neurological disease therapeutic areas in which it is actively supporting the hunt for breakthrough treatments, having already landed contracts from companies active in Alzheimer’s, Parkinson’s, PSP (progressive supranuclear palsy), and MS.

Focused on neuroscience

“Neurological disease represents a major unmet medical need”, says Giulio Cerroni, chief executive, adding that the company is seeing growing demand for its services.

Macro trends such as an ageing population, coupled with there being very few medicines available for these debilitating and potentially life-limiting diseases, is driving increased investment in the neuroscience drug discovery and development pipeline from big pharmaceutical and bioscience companies.

This latest contract win is IXICO’s fourth announced this year for Huntington’s – a genetic disorder which is inherited and causes brain cell death and can degrade mental and physical abilities. 

“The core of our strategy is expertise, we have to be the ‘go to’ people for analysis of medical images in the brain”, Cerroni adds.

Financial numbers have started to reflect the growing interest.

WATCH: IXICO full year performance expected to be 'ahead of market expectations'

In August, the group forecast revenue growth this year of nearly 25% or at least £5.1mln, while losses will also be significantly reduced.

What it does

IXICO’s digital platform and Artificial Intelligence (AI) software manages and helps interpret images from MRI and positron emission tomography (PET) scanners as well as collating and making sense of Real World data from wearable biosensors.

Biogen collaboration

But the IXICO business model is far subtler than simply being a digital pharma services business to clinical trials.

Its collaboration with the giant Biogen is illustrative of this.

It is providing the digital platform to connect physicians treating patients with multiple sclerosis with neuroradiology expertise to enable them to reliably detect and monitor the safety of the company’s flagship product, Tysabri.

While it is a hugely effective treatment, there is a small risk an increased incidence of infection with JC polyomavirus in the brain which can lead to progressive multifocal leukoencephalopathy or PML.

PML is a serious condition that ultimately can result in serious disability or even death.

IXICO’s technology helps spot the signs of potential PML infection early and differentiate it from signs of MS disease activity, providing the physician with a second opinion and help them determine if the patient should continue with Tysabri treatment.

For Biogen this offers a huge boon – it is a way of keeping tabs on patients and it means more people can be safely put on the MS drug than are currently receiving it.

Crossing the Rubicon

In providing such a drug safety monitoring service, IXICO has crossed the commercial Rubicon (if one can actually do that).

It has taken a useful piece of technology deployed in the clinical development of drugs and developed a companion product that will help doctors prescribe drugs more effectively.

Now, this is a hot area, one potentially worth tens of billions of pounds when it is fully developed and IXICO’s strategy is quite simple – it wants a small slither of the pie.

It is using the technology backbone from its current digital platform, TrialTracker, and transplanted it into new innovations.

First adopters

Remember, IXICO is already working with the likely first adopters of this neuroimaging technology – Biogen’s stated aim is to be a pioneer in neuroscience but the platform is likely to be of interest to other major pharmaceuticals companies active in this area.

Why are the multi-national drug giants interested in companion products and willing to shell out for them?

Well, very soon these businesses may be paid on patient outcomes – or good old-fashioned value for money to use more common parlance.

The Biogen collaboration may be in its infancy, but it provides proof positive that IXICO’s strategy has legs.

At 30p, the AIM-listed company is valued at about £14mln.


View full IXI profile View Profile

IXICO Plc Timeline

Related Articles

June 20 2018
“FLU-v is designed to protect against a broad range of influenza viral strains and this includes unexpected seasonal strains or a potentially devastating pandemic strain"
couple in bed
March 14 2018
MED2002 is a rapid onset gel designed for those men where the current pill-based treatments aren’t appropriate, or carry significant side-effects
March 19 2018
The group has received key permits to allow cannabis - flowers and oils - to be imported into Australia from Aurora Cannabis Inc

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use