CRX.L Regulatory News (CRX)

20th June 2013

Cyprotex PLC

("CRX" or "the Company" or "the Group")

Trading Update - H1 2013

Cyprotex PLC, a specialist ADME-Tox Contract Research Organisation providing screening services to the pharmaceutical, biotechnology, agrochemical and cosmetic industries, today provides a trading update for the half year ending 30 June 2013.

Financial update

Cyprotex can confirm that trading for the half year ending 30 June 2013 is anticipated to exceed the Board's expectations. Total revenues for H1 2013 are expected to be in the range of £4.25 million to £4.45 million (2012: H1 £3.72 million), an increase of approximately 14% to 20% on the comparative period. The revenue performance is encouraging across all of our geographical markets and our main service operations of high through put ADME, customised ADME and toxicology.

The recently awarded Environmental Protection Agency (EPA) ToxCast contract, worth up to $10 million over 5 years, is unlikely to yield any revenues in the half year ending 30 June 2013 and its potential impact is not considered in this trading update.

Operating costs for the first six months of 2013, on a pre-exceptional basis, are anticipated to be in line with the Board's expectations. Consequently, as a highly operationally geared company, Cyprotex is expecting to post a record half year operating profit for H1 2013 in the order of £200,000 to £300,000 (2012: H1 operating loss £189,000).

Outlook

The historical 45%:55% split for trading revenues is expected to continue in 2013. Market expectations for total revenues are £9.5 million for the year ending 31 December 2013, with an operating profit of £0.8 million. With sound fiscal controls applying over all operational costs, the Board believes that operating profitability for the full year 2013 is anticipated to be in line with current market expectations prior to any potential impact from the EPA contract.

The Company is currently scheduled to issue its interim results for the half year ending 30 June 2013 on Wednesday 7 August 2013.

Dr Anthony Baxter, CEO of Cyprotex, commented:

"We are very pleased to report that trading is ahead of expectations for the first half of 2013. Our stated strategy to widen our service offerings is beginning to bear fruit. We are providing more customised ADME assays for pharma company clients and expanding our new toxicology offerings to all our customers. Our focus remains to deliver the highest quality data, as rapidly and as cost effectively as we can."

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About Cyprotex PLC 

Cyprotex is based in Macclesfield, near Manchester in the UK, and Watertown, MA in the US and is listed on the AIM market of the London Stock Exchange (CRX). The company was established in 1999 and works with more than 700 partners ranging from small biotech's to large pharma companies. Cyprotex acquired Apredica and the assets of Cellumen Inc. in August 2010 and the combined business provides support for a wide range of experimental and computational ADME-Tox and PK services, extending from early drug discovery through to IND submission. The company's core capabilities include high quality in vitro ADME screening services, mechanistic toxicology and high content toxicology screening services, including our proprietary CellCiphr® toxicity prediction technology, and predictive modelling using PBPK and QSAR techniques, including Cloe® PK for in vivo PK prediction. For more information, see www.cyprotex.com.