Oncimmune's strategic pivot aims for robust growth in 2024
London, UK
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March 08, 2024 09:35 AM Eastern Standard Time
Oncimmune Holdings PLC (AIM:ONC) CEO Martin Gouldstone joins Proactive's Stephen Gunnion with highlights of the company's 2023 performance, which included its strategic decision to focus on its ImmunoINSIGHTS platform.
A significant development was the sale of its early lung cancer detection business to US biotech company Freenome, generating substantial funds. This capital was utilised partly to reduce existing company debt and, importantly, established a five-year master service agreement (MSA) with Freenome, guaranteeing Oncimmune a minimum of £1.3 million in service revenues on a use-it-or-lose-it basis, with a two-year break clause. This deal not only provided immediate financial benefit but also assured a steady revenue stream for at least two years.
Gouldstone emphasized the company's focus on its ImmunoINSIGHTS service platform, highlighting its commercial and scientific potential. Since his tenure began in August last year, Gouldstone said he has been dedicated to maximizing the platform's commercial impact and scientific capabilities.
The strategic redirection towards new commercial areas and customer segments was marked by the announcement of a new strategy in October, followed by securing seven contracts in novel commercial domains, including repeat business with large pharmaceutical companies and new engagements in biotech. These contracts span discovery and adverse event prediction in immuno-oncology, reflecting the strategic diversification efforts.
With the commercial team nearing completion, Oncimmune anticipates a tangible impact on revenues towards the end of 2024, with an aim to further expand the sales team in the US by FY25.
Looking ahead to 2024, Oncimmune has projected a revenue target of £3 million, marking at least a 150% increase from the previous year and setting a record high for the company's operations in Germany. This ambitious forecast underscores the company's strategic refocus, relaunch, and consolidation efforts aimed at sustaining growth and delivering improved financial performance in the coming years.
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