What IXICO does
IXICO PLC’s (LON:IXI) data analytics services are used by the global biopharmaceutical industry to interpret data from brain scans and digital biosensors to enable better trial design, site qualification, patient selection and clinical outcomes.
The company’s digital platform and Artificial Intelligence (AI) software manages and helps interpret images from MRI (magnetic resonance imaging) and PET (positron emission tomography) scanners as well as collating and making sense of real-world data from wearable biosensors.
How it is doing
In October IXICO secured new contracts in Huntington's disease clinical trials, including retrospective analysis of data sets for three Natural History Studies in Huntington's disease with a new large pharma customer and a multicentre, open-label Phase II study with an existing large pharma customer.
Whilst these contracts to support Huntington's disease clinical trials are not to the same scale as the £10.5mln contract announced in April 2020, the additional contracts reflect the strong position IXICO has as a trusted neuroscience technology partner in this area.
In the year ending in September, revenue rose by 26% to £9.5mln, up from £7.6mln the year before, signifying the fourth year in a row that revenue had increased by more than 25% year-on-year.
IXICO added that it has strong revenue visibility for 2021 and beyond after the order book grew by 26% to £21.7mln as at the end of September, up from £15.9mln a year earlier.
What the boss says: Giulio Cerroni, chief executive
"Huntington's disease is a devastating rare neurological condition with unmet medical needs. IXICO has worked on several HD clinical studies since 2007 and is pleased to build further momentum in our mission to support our clients in delivering data analytics in these challenging areas of rare, neurodegenerative disease."
"Our services will enable clients to measure the impact of the trialled drugs with greater confidence and potentially unlock new insights into disease progression and drug development ."
What the broker says
Analysts at Shore Capital reiterated a 'buy' rating on the stock, saying: "We see this morning’s update as further encouraging evidence in the momentum of commercial wins at IXICO, and continue to view IXICO’s underlying data analytics platform as truly differentiated.
"The focus on commercialisation profitability by CEO Giulio Cerroni continues to deliver meaningful growth for the business and investors."
- Earnings continue to rise
- Margins are increasing as more companies use its AI-based algorithms
- Working also with smaller biotechs as well as large pharmas