RE: Disgustingly sgit management2 Dec 2024 18:05
Going concern
The Company is confident that given the health benefits and economics that MT-RNR1 will be a commercial success. The NICE EVA (Early Value Assessment) recommendation is testimony to it and the funding for the EVA evidence generation is expected to see over £0.5m of revenue commencing in November 2024.
The huge success of our CYP2C19 product development, offers the NHS an intervention that is estimated to save the NHS £160m every year and improve patient outcomes. This paves the way to a much larger global market than MT-RNR1 with a far less complex route to adoption. The NICE DAP (Diagnostics Assessment Programme) recommendation and the initial first sale demonstrates significant progress.
The Company recognises the uncertainty regarding the timing of the associated revenue generation, given we are at the forefront of the emerging pharmacogenetic field and the funding complexities within the NHS are understood. National Commissioning of our products brings significant upside to the sales forecasts, but it is outside of our control and therefore the timing is difficult to predict.
The various forecast scenarios that were considered by the Board, identify costs mitigations that could extend the cash runway, and the Directors have reasonable confidence in their ability to raise additional financing if required to bridge the funding gap to a positive EBITDA position. While the Board has a successful track record in raising funds, there remains uncertainty as to the amount of funding that could be raised from shareholders or debt providers.
As described in the accounting policies, we continue to adopt a going concern basis for the preparation of the accounts, but the combination of the above factors represent a material uncertainty that may cast significant doubt on the Group and Company's ability to continue as a going concern.