Oncimmune Holdings PLC (LON:ONC) said revenues in the year to the end of May were eight times higher year-on-year, in line with expectations.
The immunodiagnostics developer said revenues rose to £5.6mln from £0.7mln the year before.
Revenue growth in the current fiscal year (FY22) is expected to be predominantly driven by the continued strength of the ImmunoINSIGHTS services business.
FY22 should represent another step change in revenue growth, as the commercial pipeline is converted into service contracts and subsequently into multiple projects and broader strategic commercial partnerships with associated long-term revenue potential.
The board is expecting a strong start to the new financial year thanks to contracts signed in the final quarter of the year just gone plus contracts in the pipeline that should be won in the first quarter of FY22.
The ImmunoINSIGHTS pipeline of qualified commercial opportunities currently stands at 160, having grown throughout fiscal 2021. Of particular note are two contracts for major pharmaceutical companies that represent substantial follow-on validation contracts, Oncimmune said in a trading update.
Together with contracts already signed, unsigned contracts that are expected to close in the current fiscal quarter should account for roughly half of the market’s full-year revenue expectations for the ImmunoINSIGHTS business, underpinning the board’s confidence that the group will meet its revenue expectations for the whole year.
Given the growth in the ImmunoINSIGHTS commercial pipeline, Oncimmune is actively considering establishing a duplicate laboratory facility in the US to directly service its US client base. Currently, more than 90% of the company's commercial revenues for this business are sourced from US-based pharmaceutical companies and biotechs, and the building by the company of a US-based ImmunoINSIGHTS business development team would be expected to complement a new facility.
Meanwhile, the programme to increase capacity to roughly 40,000 samples a year by August 2023 is proceeding to plan and will enable the company to meet the increasing demand from customers for its ImmunoINSIGHTS service offering.
In addition, the company's EarlyCDT product business is beginning to see an improvement in commercial activity following the impact of COVID-19 on FY20 and FY21. The company's product sales into the NHS continue to grow and it is receiving increasing demand for deliveries of product into the US to Biodesix.
"Despite FY21 being a challenging year for us all with the backdrop of COVID-19, I have been humbled by the individual dedication and professional commitment shown by all within the Oncimmune team, enabling us to stick to the schedule laid out in our three-year forward strategy,” said Adam Hill, chief executive of Oncimmune.
"We were able to deliver the second and third pillars of our strategy - moving into patient selection through partnerships with pharma companies - through the launch of ImmunoINSIGHTS, while we have continued to successfully access both the UK and US markets with EarlyCDT Lung providing sales channels from which we can build.
“The company has delivered outstanding top-line growth – an average of over 40% quarter upon quarter growth over the last eight periods. ImmunoINSIGHTS has also proven its ability as a stand-alone business, and we anticipate this will be an enabler of future investment and growth looking forward," Hill said.