Predictive Oncology Inc. (NASDAQ:POAI) has reported its financial results for 2021, a year which saw the company strengthen its balance sheet, acquire zPREDICTA Inc, and expand its sales and business development.
The Minneapolis, Minnesota-based company, which is focused on applying AI to develop personalized cancer therapies, showed earlier this year via its proof-of-concept campaign that its Patient-centric Discovery by Active Learning (PeDal) platform could make high-confidence predictions of drug responses on ovarian tumor samples.
"M&A activity in 2021 was highlighted by the acquisition of zPREDICTA Inc, whose established business model and integration of organ-specific cellular and extracellular elements into 3D culture models for in-vitro cancer drug testing is believed to be accretive on a short as well as long-term basis, and immediately made it a reportable business segment for Predictive," said CEO and chaiman J. Melville Engle in a statement.
"We believe this acquisition and the valuable IP that came with it will provide even more competitive advantages in helping identify, develop, and expedite new cancer therapies as it complements our company purpose of treating specific cancers through predicted cancer treatment outcomes and optimal drug formulations," he added.
READ: Predictive Oncology validates Discovery 21 proof-of-concept campaign
"Soluble Biotech, one of our other valuable business segments, which centers on contract services and research focused on solubility improvements, stability studies, and protein production, also saw exciting advancements this year toward completion of a new GMP facility. We believe the new GMP facility is expected to better meet the needs of the subsidiary's customer base," Engle said.
The company raised around $55 million from at-the-market and private investment deals, as well as warrant exercises in 2021 and expanded strategic sales and business development by hiring Pamela Bush to lead monetization transition from research and development to commercial viability.
Revenue for the year to end-December was $1.42 million, up from $1.25 million in 2020.
The Skyline division was responsible for the majority of the revenue, but Soluble showed significant growth, generating $233,293 and $2,870 in the years ended December 31, 2021 and 2020, respectively, the company noted.
The gross profit margin was 66% in 2021, a 2% increase over 2020, while margins increased in 2021 primarily due to decreased cost of sales related to sales in the Skyline Medical business.
The company posted a net loss for the year of $19.6 million versus a loss of $25.8 million in 2020 as the COVID pandemic continued to impact its capital and financial resources, including its overall liquidity position and outlook.
It ended 2021 with $28.2 million in cash and equivalents compared to $0.68 million in the prior-year period, and $40.3 million in stockholder's equity compared to $2.6 million in 2020.
Predictive Oncology is focused on applying artificial intelligence to develop personalized cancer therapies, which can lead to more effective treatments and better patient outcomes.
It uses a database of more than 150,000 cancer tumors, categorized by patient type, against drug compounds to determine optimal therapies to be used to ultimately eliminate cancer.
Contact the writer at giles@proactiveinvestors.com