Last checked at 30 Nov 2010 07:00
Proteome Sciences plc
("Proteome Sciences" or "the Company")
Trading update
From previous statements in the 2009 Annual Report and Accounts and the Interim Report in September, Proteome Sciences had indicated that it was targeting breakeven for its activities in 2010. Following the successful outcome of the warranty claim against Sanofi-Aventis in September and subsequent receipt of €11m in settlement, Proteome Sciences now anticipates reporting a pre-tax profit and positive earnings in 2010.
The interim statement mentioned that lead times to negotiate and implement commercial contracts would be variable and may provide a continued uneven pattern of revenue until 2011, when they are expected to move to a more predictable basis. The buoyant commercial environment for our biomarker activities continues and, following the recent announcement of the ICON strategic alliance and contract, the timing of concluding some of the other licensing/commercial contracts may now occur later in the fourth quarter than expected and may not be fully reflected into revenues until 2011. In these circumstances it is unlikely that the profit before tax excluding non-exceptional items in 2010 will reach breakeven.
The second half of 2010 has seen the installation of new mass spectrometry capabilities in our ISO 9001:2008 certified Frankfurt facility and the roll out of several mass spectrometry assays for biomarkers in Alzheimer's disease. These have resulted in increased commercial activity at PS Biomarker Services™ with a number of contracts in the final stages of negotiation. We expect to announce conclusion of some of these before the year end with revenues falling into 2010 and through 2011.
Oncimmune Limited the lung cancer licensee is removing Proteome Sciences annexin 1 autoantibody biomarker from its assay following the re-design of its EarlyCDT panel and the inclusion of two additional biomarkers. The current assay format has a restriction as to the maximum number of biomarkers that can be included and it must be emphasised that this does not in any way reflect on the utility or performance of annexin 1 as a strong and early diagnostic biomarker for screening lung cancer. As more antigens are added to lung cancer panels, we expect that annexins will be core components of that process and will be part of future panels as these get optimised. Proteome Sciences does not anticipate that this will have a material effect on revenues in 2011 and will continue vigorously to conclude further cancer licenses with other diagnostics companies for both lung and breast cancers.
Annexins have also been shown to have novel utility and applications in breast cancer for early diagnosis, for assessing the suitability of chemotherapy and as a target for therapy and for oesophagus cancer, with our patents covering these uses. Good further external progress has been made assessing the use of annexins in panels for early detection of breast cancer and it is anticipated that this may lead to licensing and introduction of a test in 2011.
In the second half of 2010, the Company is seeing unprecedented levels of interest and activity in its biomarkers and PS Biomarker Services™. Further contracts are expected to close over the remainder of 2010 and into 2011. With a transformed balance sheet, backed with substantial cash balances, we remain strongly positive about our prospects.
For further information please contact:
Proteome Sciences plc
www.proteomics.com Tel: +44 (0)1932 865065
Christopher Pearce, Chief Executive Officer christopher.pearce@proteomics.com
Dr. Ian Pike, Chief Operating Officer ian.pike@proteomics.com
Public Relations
IKON Associates Redleaf Communications Limited
Adrian Shaw Anna Dunkin/Lucy Salaman
Tel: +44 (0)1483 271291 Tel: +44 (0)20 7566 6700
Mobile: +44 (0)7979 900733 Email: proteome@redleafpr.com
Email: adrian@ikonassociates.com
Notes to Editors:
About Proteome Sciences
Proteome Sciences is a global leader in applied proteomics and uses high sensitivity proprietary technologies for protein biomarker discovery, validation and assay development. The Company's own research has discovered a large number of novel protein biomarkers in key human diseases and is focused mainly in neurological/neurodegenerative conditions and in cancer. It has discovered and patented blood biomarkers, including Alzheimer's disease, stroke, brain damage and lung cancer for diagnostic and treatment applications. These biomarkers are available for outlicensing. The first blood test for lung cancer using Proteome Sciences' biomarkers was launched in the USA in 2009 and received Medicare reimbursement in 2010. Its PS Biomarker Services™ provides ISO 9001: 2008 accredited facilities in Frankfurt, Germany, using proprietary isobaric and isotopic Tandem Mass Tags® (TMT®) to discover protein biomarkers, and reference materials combined with isotope dilution mass spectrometry. Highly multiplexed assays can be developed rapidly and are suitable for screening hundreds of candidate biomarkers in validation studies. Assays for validated biomarkers can be transferred for immunoassay development. Proteome Sciences, based in Cobham, UK, has facilities in London and Frankfurt and delivers outsourced proteomics services and proprietary biomarkers to pharmaceutical, biotechnology and diagnostics companies. Visit http://www.proteomics.com.