Cavendish remains bullish on CelLBxHealth PLC (AIM:CLBX, FRA:DWV) with a 'buy' rating and 4p price target in the wake of its prelims earlier.
The AIM-listed biotech has completed a strategic reset centred on cost reduction and a shift towards partner-led commercialisation of its Parsortix platform.
Annualised operating costs will fall to approximately £6.7m following a 60% headcount reduction and consolidation into a single location, extending cash runway into the second quarter of 2027.
The critical shift moves Parsortix away from standalone pharma services towards integration into clinical workflows through partnerships with contract research organisations, diagnostic companies and MedTech firms.
Early validation has emerged through tie-ups with Myriad Genetics, AstraZeneca, AdventHealth and Royal Marsden, validating the customer diversification strategy.
Cavendish forecasts revenue will jump 55% to £2.1m in 2026, accelerating to £5.6m in 2027 and £8.3m in 2028. The broker expects the company to turn cash-flow positive by 2028, with adjusted EBIT losses shrinking to £0.8m in 2027 and just £0.1m in 2028.
Near-term performance hinges on pipeline conversion and partnership monetisation. The company noted its pipeline grew 22% in the most recent quarter, signalling improving commercial momentum, Cavendish said.
Consistent execution against newly established collaborations represents the key value driver over the next 12 to 18 months. Sustained revenue growth and improved visibility will be required to rebuild investor confidence, the broker concluded.
The shares were changing hands for 1.57p each.
