TIDMMSYS
RNS Number : 3997I
Microsaic Systems plc
19 June 2017
19 June 2017
Microsaic Systems plc
("Microsaic", "Microsaic Systems" or the "Company")
Trading Update
Microsaic Systems plc (AIM: MSYS), the developer of chip-based
mass spectrometry ("MS") instruments designed to improve the
efficiency of pharmaceutical R&D, announces the following
unaudited trading update as it approaches the end of the six month
period to 30 June 2017.
The Company advised the market on 13 December 2016 that it was
experiencing difficult trading conditions in its existing markets
for small-molecule detection, which were expected to influence 2017
performance. Trading conditions in the first six months of 2017
("H1") in these markets have continued to be difficult and the
Company now expects its H1 and full year 2017 revenue to be
significantly lower than for 2016.
The projected short fall in revenue for H1 and full year 2017 is
expected to be off-set by lower overheads as a result of cost
reduction plans implemented in H1. The full year loss before tax is
expected to be broadly in line with 2016.
In recognition of the challenging markets in small-molecule
detection, and driven by the increasing trends for detection of
larger molecules during biopharmaceutical manufacturing
("bioprocessing"), the Board devised and began implementing a
revised strategy. This strategy is focused on the application of
its unique miniaturised, point-of-analysis MS instrument (the 4000
MiD(R)) in high-value processes where cost of failure for
pharmaceutical companies in particular is high and where regulation
is demanding change.
Consequently, the Company is focusing its technical resources,
and working with existing and potential new partners, targeting
opportunities in bioprocessing for therapeutics and in the longer
term for diagnostics.
Bioprocessing
Bioprocessing is a crucial stage in the production of biologic
drugs, and aims to ensure that they are produced and purified
correctly to retain the specific activity given their complex
structures, without introducing harmful substances or degrading the
biologic product.
Microsaic's strategy is to work with the key providers of
bioprocessing equipment, and in particular those companies involved
in biologic purification. The Company already has a collaboration
agreement in place with a market leader in bioprocessing equipment
and is nearing the end of the current phase of this collaboration;
and from the Company's perspective, it is on course to deliver its
milestones in the coming months. In addition, Microsaic is pursuing
a pipeline of other collaborative and co-development
opportunities.
Eric Yeatman, Interim Non-Executive Chairman, commented:
"Despite 2017 proving to be a difficult year in our traditional
markets, we are very encouraged with the progress since our 21
March 2017 update, when we introduced our biopharma strategy,
specifically around bioprocessing. We are engaging with several of
the leading players in the global market for bioprocessing
equipment, and are confident that the new strategic emphasis is
opening significant opportunities for our unique technology. We do
recognise, however, that it will take time to deliver revenue from
these opportunities due to the lead time in developing and
marketing new products. We will continue to keep shareholders
updated on new developments."
Other developments
-- 4000 MiD(R) Family
The benefits of Microsaic's point of use MS technology, in
combination with its patented innovation for on-line desalting,
allows for the purification of biomolecules in real time. In doing
so, analysis times can be reduced from days or weeks to minutes
while offering the potential for significant savings on operational
costs.
We are shortly releasing product with extended mass range and
developments are in the pipeline to improve the performance
further.
-- PrepCon 5 software
PrepCon 5, a third-party software platform for chemical
instrumentation, can now be used in conjunction with the 4000
MiD(R). PrepCon 5 controls all functional aspects of the 4000 MiD's
operation. In addition, the simple user interface allows the
current status of the system to be monitored at any time.
-- Clarity software
Clarity is an advanced Chromatography Data Station, now
compatible with the 4000 MiD(R), showcasing optional software
modules for data acquisition, processing and instrument control.
Its wide range of data acquisition interfaces allows connection to
any liquid chromatograph.
-- Triple Quad
The Company has developed a working prototype of an advanced
"triple quadrupole", and is welcoming interest from partners for
further product development and channels to market in applications
including environmental and life sciences.
Corporate
The Company is progressing in its search for a CEO; meanwhile
the business will continue to be managed by the executive team of
Glenn Tracey (Chief Operating Officer) and Bevan Metcalf (Finance
Director).
Financial position
The Board expects revenue for 2017 to be significantly below
2016 but the full year loss before tax should be broadly in line
with 2016.
The Company's cash position at 31 May 2017 was GBP4.2 million.
The Company is looking to extend its cash runway, through prudent
financial management, co-development income and grants.
This announcement is released by Microsaic Systems plc and
contains inside information for the purposes of Article 7 of the
Market Abuse Regulation (EU) 596/2014 ("MAR"), encompassing
information relating to the trading update described herein, and is
disclosed in accordance with the Company's obligations under
Article 17 of MAR.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of the Company by Bevan Metcalf, Finance Director.
Enquiries:
Microsaic Systems plc
Glenn Tracey, COO
Bevan Metcalf, FD +44 (0) 1483 751577
N+1 Singer (Nominated Adviser
& Broker)
Shaun Dobson
Liz Yong +44 (0)20 7496 3000
Citigate Dewe Rogerson
(Financial PR)
Mark Swallow
Shabnam Bashir +44 (0)20 7638 9571
About Microsaic Systems
Microsaic Systems plc (AIM: MSYS) is a high technology company
developing chip-based, bench-top and point-of-analysis mass
spectrometry ("MS") instruments that are designed to improve the
efficiency of pharmaceutical R&D. The Company is working with
established global life science companies to co-develop new
solutions to improve productivity in the development of small
molecule and novel biologic (peptides, antibodies) medicines. MS is
a powerful method of analysis to enable earlier decision making
relating to product identification, purity and bioactivity, and is
the analytical technique of choice for biochemists across many
industry sectors.
Microsaic's core product, the 4000 MiD(R), is one of the
smallest MS systems in the world, retaining the functionality of
larger conventional MS systems, is easier to use by
non-specialists, consumes less energy and has lower running costs.
For more information, please go to www.microsaic.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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