Diagnostics group Oncimmune Holdings PLC (LON:ONC) says its cash position is materially ahead of expectations as it moves towards a major study for its EarlyCDT lung cancer test.
In June, Oncimmune released the results of a study of the diagnostic tool on 12,210 people in Scotland.
The EarlyCDT-Lung test was used alongside x-rays and CT scans to check for the killer disease and hit its primary end point of reducing the incidence of late-stage lung cancer.
Oncimmune said the study showed the commercial potential of EarlyCDT, which will now be tested further in a 200,000 person study.
Commercial terms are being negotiated for the study, which is expected to commence later this year and will last approximately 24 months.
The study is expected to add materially to revenues and profits over its duration, said the AIM-listed company.
Outside of the UK, Oncimmune has already negotiated a number of distribution agreements for EarlyCDT, which amount to guaranteed revenues of at least £34.6mln.
Some of these have taken longer than expected to conclude so sales this year will undershoot expectations, but lower operating costs will mean reduced losses and the better cash position than expected.
Elsewhere, a study of EarlyCDT in 1,000 people in China will generate top-line results in the final quarter of 2019 after which Chinese approval for the diagnostic tool will be sought.
Oncimmune added it is also in discussions with a number of possible partners for its autoantibody panels.