Last checked at 19 Dec 2018 11:20
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
19 December 2018
Microsaic Systems plc
("Microsaic" or the "Company")
Update on bioprocessing partnership and trading update
Microsaic Systems plc (AIM: MSYS), the developer of point of need mass spectrometry ("MS") instruments, announces an update on its partnership with a global partner in bioprocessing and confirms that trading in 2018 remains in line with the Board's expectations.
As announced in 2017, following successful completion of a feasibility phase ("Phase One"), the Company entered into an integration phase ("Phase Two") with one of the foremost players in the global market for scientific instrumentation in life sciences. Phase Two has now been completed successfully, with a clear addressable market identified and positive feedback received from potential customers. However, the Company's partner has decided not to take the project forward into the final commercialisation phase at this point in time, as it has decided to focus resources on internal projects in support of its core business.
The termination of this collaboration will not have a material impact on the Company's results or cashflows for the financial years 2018 and 2019 and the Company's balance sheet remains strong with cash of around £5.4m forecast for the end of 2018.
Using additional third party validatory data generated for the Company, including recent work with the Massachusetts Institute of Technology ("MIT"), the Company has already initiated discussions with other significant global suppliers of equipment for bioprocessing, where the Directors believe there is a significant market opportunity for the Company's highly differentiated point of need MS instruments. These opportunities will continue to be pursued vigorously.
In the traditional small molecule market, the Company has continued to make encouraging progress, evidenced by the signing of seven new partner agreements this year. The Board expects that its existing partnerships, coupled with a number of potential new collaborations, will contribute to very significant growth in this market in 2019 and beyond. In the medium term, management is targeting to get the Company to cash breakeven in this segment alone.
Glenn Tracey, CEO of Microsaic, commented, "It is disappointing that, despite successfully completing Phase Two of the collaboration, due to its focus on its own internal programs, our partner has decided not to proceed with the commercialisation phase at this time. However, I have had constructive discussions about the technical and commercial outcomes of Phase Two, and these support our belief that the Company has a significant opportunity for its highly differentiated point of need MS instruments in the bioprocessing market. Meanwhile, we are making encouraging progress in our traditional small molecule market where we expect very significant growth next year and beyond."
Enquiries:
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Microsaic Systems plc Glenn Tracey, CEO Bevan Metcalf, FD | +44 (0) 1483 751 577 |
N+1 Singer (Nominated Adviser & Broker) Shaun Dobson / George Tzimas (Corporate Finance) Tom Salvesen (Corporate Broking)
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+44 (0)20 7496 3000 |
IFC Advisory Ltd (Financial PR) Graham Herring Heather Armstrong Florence Chandler | +44 (0)20 3934 6630 |
About Microsaic Systems
Microsaic Systems plc (AIM: MSYS) is a high technology company developing chip-based, bench-top and point-of-analysis mass spectrometry ("MS") instruments that are designed to improve the efficiency of pharmaceutical R&D and manufacturing. The Company works with established global life science companies to co-develop new solutions to improve productivity in the development of small molecule and novel biologic (peptides, antibodies) medicines. MS is a powerful method of analysis to enable earlier decision making relating to product identification, purity and bioactivity, and is the analytical technique of choice for biochemists across many industry sectors.
Microsaic's core product, the 4500 MiD®, is a robust and compact MS system, retaining the functionality of larger conventional MS systems, is easier to use by non-specialists, consumes less energy and has lower running costs. For more information, please go to www.microsaic.com.