Scientific research and equipment provider Microsaic Systems (LON:MSYS) has cause for celebration this Thursday, with impressive performance in its latest update and a noteworthy share price rally to match.
The Company said that its full-year revenues are expected to be up by 50% year-on-year, from £0.58 million to £0.87 million.
This impressive progress was led by strong sales in the second half, up 66% from the first half. The Company also saw gross margins improve from 32% to 43%, bringing its full-year to 39%, which was slightly below the 42% reported for FY18.
It continued to give reasons for praise, stating that it made ‘significant progress’ with its strategy for the traditional ‘small molecule’ market by signing four new agreements during the year, “specifically an additional OEM agreement with Biometrics Technologies Co, Ltd for its 4500 MID® MS detector to be integrated with high performance liquid chromatography equipment and distributed in Southeast Asia, South Korea and India.”
It added that it signed three exclusive distribution agreements for, “the distribution of the 4500 MID® MS detector with CM Corporation Ltd. for South Korea, Chromatec Scientific Pty. Ltd for Australia and New Zealand and with ST Japan Inc., for the Japanese market.”
It added that it achieved significant progress in its strategy for the biopharmaceuticals market, and among other developments it launched its MiD® ProteinID product.
Microsaic Systems comments
Reacting to the update, Company CEO Glenn Tracey, said,
“I am very pleased with the progress in 2019, and excited by the growing pipeline of opportunities ahead of us, which the Board believes will deliver significant growth in the short to medium term. In particular, our new product releases in 2020 will significantly change our business outlook, as we transition to a complete solution provider, while still maintaining our unique ‘compact’ value proposition.”
“Our business development pipeline has increased momentum, and, in 2020, we expect to grow our targeted direct sales channel as well as sign more deals with partners.”
“Finally, we are delighted to have extended our collaboration with CPI as announced in December. To our knowledge, there is no other MS technology that can offer a complete suite of product and process analysis in bioprocessing, while simultaneously controlling the biomanufacturing process. We have a potentially game changing technology, applicable to all areas of high value drug production, and indeed for many other types of chemical production where real-time analysis is critical to reducing production costs and reducing the costs of non-compliance and failure.”
Elsewhere in health and pharmaceutical news; Beximco Pharmaceuticals (LON: BXP), IMCD N.V. (AMS: IMCD), Amryt Pharma Holdings Ltd (LON: AMYT) and Curetis NC (AMS: CURE) also boasted financial progress.
Following the update, the Company’s shares jumped 21.82% or 0.24p to 1.34p per share 16/01/19 10:07 GMT. Neither a p/e ratio nor a dividend yield are available for Microsaic Systems stock, their market cap is £5.7 million.