Oncimmune Holdings PLC (LON:ONC) shares fell on Wednesday as the cancer diagnostics firm reported wider first-half losses due to higher administration costs as it awaits the results of the largest-ever randomised trial for the early detection of lung cancer using biomarkers in the UK. For the six months to 30 November 2018, the AIM-listed firm posted a pre-tax loss of £3.85mln, wider from the £2.83mln loss recorded a year earlier, although revenues rose to £121,000 from £77,000.
READ: Oncimmune reports "encouraging" interim data from NHS lung cancer screening trial
The wider losses came as the group's total administrative expenses before share-based charges rose to £3.32mln, up from £2.39ln a year earlier, with R&D costs rising to £690,000 from £450,000. The company, however, highlighted a strong cash balance at the period end of £9.05mln, up from £6.30mln a year earlier. Oncimmune said: "Over the period, we have continued to build and support our international EarlyCDT-Lung distributor network. We currently have 18 agreements in operation, as compared to 13 in May 2018, with total minimum sales commitments of £33.5mln over the initial contract terms. In the period, we added new European distributors for EarlyCDT-Lung kits in Germany, France, Italy and Spain." It added: “Germany is the largest market in Europe with an estimated 18 million smokers, and in Spain there are an estimated 13 million smokers. Across Germany, France, Italy and Spain, there are approximately 130,000 deaths every year attributed to lung cancer, and the disease remains the most prevalent cause of cancer death in all four countries.” The group also provided an update on the ECLS NHS Lung Cancer Screening Trial, the largest-ever randomised trial for the early detection of lung cancer using biomarkers, involving 12,210 high-risk smokers in Scotland. Oncimmune said: “By summer 2019, the Company will see a significant milestone with the formal results of the ECLS study which we anticipate will create a step change in screening opportunities for EarlyCDT-Lung.” The company also noted that the approval process for both EarlyCDT-Lung and EarlyCDT-Liver tests in China was proceeding to plan and that it expected first sales in 2020. In afternoon trading, Oncimmune shares were 4% lower at 92.5p.