Fusion Antibodies report progress in update, but shares still remain in red

Shareholders of Fusion Antibodies (LON: FAB) have seen their shares in red, despite the firm reporting progress in their most recent update issued on Monday afternoon.

The firm offers a complete range of antibody-related services in Discovery, Engineering and Supply and have guided hundreds of projects through critical preclinical stages.

Shares of Fusion antibodies trade at 73p. (-2.20%). 2/12/19 13:23BST.

In the pharmaceuticals industry, there have been updates. Today, Indivior have seen their shares dip despite progress made in one of their research operations.

However, a positive update came from Yourgene Health PLC who saw their shares rise following confident board expectations.

The firm has seen a volatile period over the last 18 months, and last year the firms saw its shares in red after it reported a slump in trading.

Fusion Antibodies posted revenue of £1.8 million for the six months ended September 30, far exceeding the previous year’s figure of £658,000, which showed good progress for the firm.

“The company’s order levels and revenues in the first six months of the financial year showed significant growth on the previous six-month period and a marked recovery from the comparable period last year. This has been achieved by addressing a number of external competitive pressures seen over the last two years, and by improving the company’s marketing function and business development strategy,” Non-Executive Chair Simon Douglas said.

As a result of the revenue rise, pretax loss narrowed to £621,000 from £887,000. The reason the loss did narrow further was more administrative expenses, which increased to £1.4 million from £1 million.

So far, uptake of RAMP has been encouraging, Fusion said, and this is expected to continue into the second half. However, order visibility is low because Fusion depends on multiple orders which are all worth less than £100,000 and capable of being executed in two to three months. As such, order visibility past three months is limited, it explained. Nonetheless, Fusion is confident order levels will growth for both its new and existing services.

Chief Executive Paul Kerr said: “Our revenues are growing apace, and we have seen a solid improvement in the performance of the business for this period, compared to the previous six months. We have received our first commercial revenues from early adopters of RAMP, and the feedback from the service has been very promising. We are on target to deliver significant revenue growth year on year.”

In the industry, shares have been volatile, and trading has been subject to tough trading conditions.

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