LONDON (Alliance News) - Horizon Discovery Group PLC on Monday said revenue for the full year 2015 will be higher than market expectations whilst its loss will also be narrower than anticipated.
The international life science tools business said revenue for 2015 is expected to be "at least" 2% higher than the GBP19.8 million market consensus, suggesting revenue will be at least GBP20.2 million. That would represent a 69% rise in revenue compared to the GBP11.9 million generated in 2014.
It will lead to Horizon Discovery's loss before interest, tax, depreciation and amortisation coming in narrower than market estimates, which currently are for a GBP7.7 million loss for 2015.
In addition, Horizon Discovery said it is eligible to receive future research and development milestones of up to GBP208.0 million plus future product royalties, an increase of 32% over the GBP158.0 million in the prior year.
Horizon said revenue growth in 2015 is reflective of strong product and service sales to large pharmaceutical and diagnostic development companies as well as an increasing number of academic customers purchasing from a product inventory that increased to 23,000 from 2,750.
The company's Products division has been "particularly strong" in 2015, with organic revenue more than doubling in the year, driven by strong demand for genetically-defined cell lines and derived molecular diagnostic reagents, it said.
The Services division is also set to report a 65% lift in revenue in 2015, driven by a strong demand for custom gene-editing, genetic screening and drug combination screening projects.
The Leveraged business continues to generate a portfolio of up-front, milestone and product royalty upside as exemplified by the deals announced with two new collaborations signed in 2015 with Redx and Servier, Horizon Discovery said.
"Further, commitments were made to invest up to GBP10.0 million across the following two years in two cutting-edge areas of cancer biology: synthetic lethality and immuno-oncology, which have the potential to deliver significant upside," it said in a statement.
Cash at the end of 2015 stood at GBP25.1 million, a large lift from the GBP18.5 million cash balance reported at the end of 2014.
Horizon will report its full-year results on April 26.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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