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(Sharecast News) - Contract research organisation Fusion Antibodies reported first-half revenue of £0.54m on Monday, down from £1.9m a year earlier.
The AIM-traded firm said research and development spending saw a significant reduction of 60%, totalling £0.18m compared to £0.45m in the first six months of the 2023 financial year.
Despite those cost-cutting measures, Fusion incurred a loss of £1.4m, widening from a £1.1m loss year-on-year.
The company's cash position as of 30 September stood at £0.5m, an improvement from the £0.2m recorded on 31 March.
Operationally, Fusion Antibodies identified an increased number of commercial opportunities and saw improvements in the valuation of its pipeline.
However, some projects faced delays as clients sought additional investment.
The firm said it made progress in developing its OptiMAL library, demonstrating whole IgG antibodies expressed on cell surfaces.
Additionally, Fusion raised £1.67m in funds and carried out a £1.6m cost rationalisation exercise.
The appointment of Stephen Smyth as interim chief financial officer was also noted.
Since the period ended, Fusion has entered into a collaboration agreement with the National Cancer Institute (NCI) in the US to validate OptiMAL.
The company also completed its first AI/ML-AbTM project, experienced further progression in its pipeline, and saw an increased rate of deal closures.
Looking ahead, Fusion expected its 2024 results to be significantly weighted towards the year's second half, reflecting its ongoing efforts to capitalise on commercial opportunities and advancements in its research and development initiatives.
"During this calendar year, the industry has been experiencing significant headwinds especially in the venture capital-funded biotech sector," said chief executive officer Adrian Kinkaid.
"A number of clients have consequently delayed initiating their projects with us.
"Nonetheless, we have generated a significantly stronger pipeline which includes a wider diversity of clients that are less dependent on VC funding."
As a result, Kinkaid said that while overall revenues for the period were low as previously announced, through the firm's efforts, it benefitted from a trend of increasing month-on-month revenues throughout the first half, which it hoped would continue to strengthen in the rest of the second-half and beyond.
"It is particularly encouraging to see our newer offerings also being well received with our first AI/ML-AbTM contract being successfully completed and, post-period end, securing the agreement with the NCI to help validate OptiMAL.
"Both of these developments are having a positive impact on market awareness and engagement."
At 1135 GMT, shares in Fusion Antibodies were down 23.4% at 4.5p.
Reporting by Josh White for Sharecast.com.
