Fusion Antibodies has reported a sharp fall in first-half revenue and said it was reviewing its working capital, as difficult market conditions weighed on the antibody specialist.
Shares in the firm fell more than 40% in early trading on Thursday.
In a statement at its annual meeting, the AIM-listed company said revenue for the six months to 30 September had dropped to about £457,000 from £838,000 a year earlier, with gross margin falling to 10% from 30%.
Revenues of £838,000 weren’t much to get excited about, and the near-50 % haircut makes the stock even less attractive, while putting the firm in financial difficulty.
It ended the period with just £135,000 of cash, though it expects to receive more than £100,000 of grant funding shortly. The company said it had cut costs, including freezing recruitment, and that its board was reviewing its working capital needs.
Although the company didn’t say this, it will likely need to raise cash, probably through a discounted placing.
Despite the trading pressure, Fusion pointed to progress in its science. Its DR5 cancer antibody programme produced encouraging results in an initial mouse study, where two of four antibody formats significantly slowed tumour growth, and it is preparing a second study.
Its OptiMAL discovery platform has drawn interest from the US National Cancer Institute, with which it is negotiating a further agreement, and it has secured new patents in Japan, Canada and elsewhere.
The company said its priorities for the second half were to convert its commercial pipeline into revenue and broaden adoption of its technology.