Shares in Oxford BioDynamics PLC (AIM:OBD) tumbled 23% to 26p, wiping out gains made in the past week, after it published results that were in line with most expectations.
The company, which has developed the EpiSwitch non-invasive screening tests, raised a total of £15.4 million before costs in the year ended 30 September 2023 in two equity fundraisings. Cash stood at £5.3 million at the end of September.
It reported an operating loss of £10.2 million, up from £8.6 million, as it invested in personnel and infrastructure to support the development of its two most advanced tests: EpiSwitch CiRT, a predictive test of a patient's likely response to immune checkpoint inhibitors that work to stimulate a patient's immune system to find and fight cancer; and EpiSwitch PSE, the "94% test" that accurately detects prostate cancer risk.
During the year, there were 516 CiRT tests processed in the year, ordered by 57 doctors, up from 79 tests ordered by seven doctors the prior year; while the PSE prostate screening test was launched in the US and UK.
Since the PSE launch there have been total orders of 144, while since the end of the year, a code has been assigned for PSE to enable reimbursement from Medicare, Medicaid or private insurers. In the UK, an agreement was made with health insurer Bupa to cover CiRT.
The company said it is also having confidential discussions with third parties about monetising its two most advanced pipeline assets, EpiSwitch NST (No Stool Test) for colorectal/bowel cancer and EpiSwitch SCB (Specific for Canine Blood) blood test for detection of multiple types of canine cancer.
Chief executive Jon Burrows said for 2024 "we are dedicated to growing sales of both EpiSwitch CiRT and EpiSwitch PSE across all our markets and channels and to pursuing opportunities to monetize assets from within our pipeline of deployable tests".
With PSE tests being run from OBD's own clinical operations laboratory in the US, a UK lab is scheduled to begin operation by the end of March, he added.
House broker Shore Capital noted that the plan is to target large organisation accounts to drive adoption and to partner to facilitate more widespread access.
Analysts said: "Raising awareness in the US has involved online activities targeting men, their families and physicians of the attributes of 'the 94% test'. These are still very early days in the US but leading indicators are positive with 144 tests processed with reimbursement available and invoiced under the unique CPT code from 1st January 2024."