Oncimmune Holdings PLC (AIM:ONC) CEO Martin Gouldstone talked with Proactive about the company’s latest trading update and growth outlook for 2025.
Gouldstone highlighted that Oncimmune experienced a strong 2024, with revenues on track to hit £3 million. He attributed this to new commercial strategies and the company’s 81% repeat business rate. He noted that projects are now starting on time, with sample availability improving.
Looking ahead, Gouldstone said that Oncimmune expects an even stronger second half of 2025, with an expanding pipeline and a maturing sales team generating new opportunities. He acknowledged that industry-wide delays in big pharma budgets had slowed conversions but expressed optimism that spending would rebound.
The company is currently negotiating with 11 new customers while also securing follow-on business from existing clients. When asked about “transformative opportunities”, Gouldstone mentioned three potential deals that could be significant in scale, though he could not yet disclose details.
Proactive: Joining me is Oncimmune CEO Martin Gouldstone. Martin, very good to speak with you. You’re out with a trading update, and it looks like 2024 was a good year for the company. 2025 could be even better.
Martin Gouldstone: Yes. Thank you. We saw a big uptick in 2024 compared to 2023. I joined the company at the back end of the FY23, and I think the new commercial strategies we put into place are beginning to pay dividends. The fact that we've managed to retain 81% repeat business with our customers is also shining through.
We are winning projects and able to start them on time. We have the samples in place, whereas before, that was sometimes a challenge. I think 2025 is tracking to be a better year than last year, which is great. A lot of the key indicators remain positive, which is also good to see.
Proactive: You mentioned in the trading update that you're on track for £3 million in revenue for 2024 and have also given some guidance for 2025. You had a strong first half, but expect an even better second half?
Martin Gouldstone: Yes, I think so. That is generally the pattern of the business, to be honest with you. That’s what we saw last year, and I think we will see that again this year. Our pipeline continues to build, and we now have a maturing sales team that is more comfortable with the technology and generating a large number of leads for the business. There are some very interesting new opportunities emerging.
Proactive: You reported three new contracts in October last year, adding £340,000 to revenue. It seems the pipeline you are negotiating remains strong.
Martin Gouldstone: It is strong, but we must be honest that conversion has not been as optimal as we would like. That’s a general slowdown seen across the industry. Some of the large CROs have reported lower-than-expected results because big pharma companies are being more cautious with budgets and slowing down decision-making.
We have certainly seen some of that. I would have liked to see greater pipeline conversion by now, but we are seeing improvements. As we start FY25, we are noticing big pharma renewing budgets, and I am hopeful that this will filter through into some of our ongoing discussions.
Proactive: You recently added a new customer and have 11 others under negotiation. You're also discussing follow-on business with existing clients?
Martin Gouldstone: That’s right, and it’s encouraging. Last year, we had 81% repeat business, and we are seeing that trend again this year. Some customers have already indicated they have one or more projects lined up behind the ones we’re currently working on, which could start once we complete the ongoing work. That’s a strong validation of our value to them.
Proactive: In the trading update, you mentioned "transformative opportunities." Can you expand on that?
Martin Gouldstone: It’s tricky to say too much at this stage because these opportunities are still developing. But there are three things we are looking at that could be very large or strategically significant for the business. If one of these materializes, it could be transformative in scale.
However, these types of deals are complex and take time to structure. There are a lot of moving parts. I am hopeful that at least one of them could come through in the next few months.
Proactive: So, a positive year ahead for Oncimmune?
Martin Gouldstone: I think so. I’m really excited about this year. I believe this could be the year that the Oncimmune profiling technology truly comes of age.
Proactive: Well, I hope you’ll keep us updated on progress. Hopefully, the next time we speak, you’ll be one of those happy CEOs.