16 Nov 2010 07:00
16 November 2010
Source BioScience plc (`Source BioScience', the `Company' or the `Group') INTERIM MANAGEMENT STATEMENT Strong demand across the business underpins continued growth
Source BioScience plc the provider of expert, quality services and products to the healthcare, pharma biotech and life sciences research sectors, today provides its Interim Management Statement (`IMS') as required by the UK Listing Authority's Disclosure and Transparency Rules, relating to the period from 1 July 2010 to 16 November 2010.
Highlights:
* Performance in line with expectations for the year to date * Delivery and installation of the Illumina HiSeq 2000 next generation sequencing platform; the first laboratory in the UK to provide this technology * Second HiSeq 2000 ordered from Illumina, doubling capacity for this leading edge technology * Launch of LifeSciences e-commerce platform and website, delivering enhanced functionality to customers and access to entire portfolio on a single site * Strong financial position with £5.8 million of cash at the end of September 2010 (30 June 2010: £5.5 million) to underpin investment and acquisition plans
Business performance
Unless otherwise stated, the financial information referenced below refers to the three months ended 30 September 2010, and the corresponding period last year, this being the latest practicable date to which financial information has been prepared.
The Group has maintained the strong start to the financial year previously reported and revenue for the year to date is in line with expectations, representing a continuation of the strong growth and business performance achieved last year.
Healthcare and PharmaBiotech Services
The Company has continued to grow its companion diagnostic offering to parallel the growing demand for targeted therapeutics. The agreements signed with pharmaceutical companies at the start of this year are generating increasing revenue for our Healthcare operations. The companion diagnostic tests for lung and stomach cancer patients provide better diagnostic information for clinicians, helping them determine the most appropriate therapy regime for the patient.
We have continued our development programme for diagnostic testing and screening services for applications where there is a clinical requirement but unmet demand. Source BioScience now offers a comprehensive suite of human papillomavirus (`HPV') tests. Some types of HPV can increase the risk of developing cervical cancer, however HPV testing is not yet routinely available on the NHS as part of the cervical cancer screening programme.
Source BioScience is well placed to benefit from the restructuring and outsourcing trends occurring within the pharmaceutical sector. We are seeing increased interest from pharmaceutical and research institutions looking to gain a better understanding of the genetics of disease in order to develop new therapies. The promotion of our genomic capability to companies requiring molecular analysis as part of their pre-clinical research and development programmes, as well as emerging pharmacogenomic analysis, will continue.
A number of IT initiatives and solutions have been introduced that facilitate faster access to test results, generating real operational and clinical benefits for both the hospital and the patient as diagnoses can be received, reviewed and acted upon more quickly.
LifeSciences
Source BioScience has established a strong track record as a leading provider of DNA sequencing services. In addition to the network of five conventional sequencing laboratories across the UK and Ireland, the Company also operates one of Europe's most comprehensive next generation sequencing facilities from its laboratories in Nottingham, using Illumina sequencing technology.
Earlier this year, Source BioScience was the first UK service provider to place an order for the Illumina HiSeq 2000 high throughput next generation sequencing platform. During this quarter this platform was installed and commissioned at the Company's facility in Nottingham. Source BioScience is currently only one of four commercial laboratories in Europe providing access to this cutting edge technology, and the only one in the UK.
To further enhance this capability and satisfy demand, Source BioScience has placed an order for a second HiSeq 2000 platform. The enhanced service portfolio will provide greater flexibility and encourage the development of new applications to meet individual customer requirements in life science research as well as clinical diagnostics, both in the UK and across Europe.
This additional investment demonstrates the Company's commitment to be the market leader in Europe for the provision of expert, high quality laboratory services to the life science research and healthcare sectors.
Quality is paramount and the Company remains the only Illumina CSPro certified service provider for sequencing in the UK.
On the 7 September, the Company announced the launch of the new, enhanced LifeSciences website encompassing the entire spectrum of life science activities. The new website delivers enhanced functionality to customers and brings the Company's complete portfolio of services and products together on a single site.
The website is the first of its kind in the industry that enables customers to order sequencing services, clones, antibodies and other research tools from one website. Highlights of the new site include over 90,000 high quality antibodies; 16 million DNA clones; DNA sequencing ordering and information on the full suite of genomic services and a unique buying experience for customers under the brand of Source BioScience LifeSciences.
Financial position
Source BioScience continues to maintain strong cash resources. Cash as at 30 September 2010 was £5.8 million, up from £5.5 million at 30 June 2010, with negligible debt. There have been no other significant changes in the financial position of the Company over the period since the publication of the Interim Report for the six months ended 30 June 2010.
Commenting on the period and outlook, Dr Nick Ash, Managing Director, said: "We have sustained the robust start to the financial year, with all divisions performing well and in line with expectations.
"In response to increasing demand for our next generation sequencing services, we have installed and commissioned our first Illumina HiSeq 2000 and made a commitment to purchase a second platform. Source BioScience is the only commercial service provider for this technology in the UK and one of only a handful across Europe. Our skills and expertise continue to attract new c ustomers from the pharmaceutical, as well as academic research, sector who are looking to use the power of next generation sequencing to understand the genetics of disease and to guide the development of new therapies.
"The launch of the new LifeSciences website and online ordering platform for the life science community is a significant step in delivering growth for our LifeSciences business. The new website offers customers access to many of the products and services they require including sequencing, clones, antibodies and other genomic reagents and biomolecular tools from a single site. This will save our customers time, as well as money. By eliminating the need to shop around, the website will increase cross selling opportunities and attract new customers.
"Whilst we have seen little impact to date, the UK government in common with others across Europe, remains under pressure to address the deficit and we are mindful that this may at some point have an impact on our business should it result in reduced research or healthcare funding. That said, we are pleased with the progress the Company has made so far this year and believe that we are well positioned to benefit from any changes in funding and financing across our customer base.
"As noted in our Interim Report 2010, growth through acquisition represents an important component of the long term business strategy of the Board. The integration of previous acquisitions has been very successful and the Group now has solid foundations with exciting opportunities to create and deliver growth. The criteria we apply when looking for suitable acquisitions are very exacting to ensure that both shareholders and company alike benefit. We have reviewed numerous acquisition candidates, in the UK and overseas and we will progress those opportunities which the Board believe will enhance our business, generate growth and increase shareholder value."
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For further information please contact:
Source BioScience plcNick AshManaging DirectorTel: +44 (0) 115 973 9010nick.ash@sourcebioscience.comBishopsgate Communications LtdNick Rome/Gemma O'HaraTel: +44 (0) 207 562 3350www.bishopsgatecommunications.comSinger Capital Markets Limited (Financial Advisor and Joint Broker)Shaun Dobson/Claes Sp¥ngTel: +44 (0) 203 205 7500www.singercm.comDaniel Stewart Securities (Joint Broker)Martin LampshireTel: +44 (0) 207 776 6550www.danielstewart.co.ukAbout Source BioScience
Source BioScience is a highly focused healthcare and biotechnology company providing diagnostic and screening services to the healthcare community and genetic analyses and biomolecular tools and products to the life science research and pharma biotech sectors.
Its Healthcare operations provide screening and reference laboratory diagnostic testing for cancer and other diseases and additional predictive testing for treatment optimisation for clinicians and patients. PharmaBiotech Services offers support for early stage therapeutic development, offering a 'one-stop shop' from tissue pathology, immunohistochemistry, sophisticated image analysis, biomarker determination and assay development to pharmacogenomics including genotyping and gene expression analysis. The LifeSciences division provides core laboratory research support from conceptualisation to implementation, calling upon a wide range of cutting-edge technology platforms including an online catalogue of biomolecular tools. This incorporates DNA sequencing, whole genome amplification and a comprehensive library of genomic reagents and clones including cDNA and RNAi, as well as facilitating rapid access to high quality antibodies, cell cultures, diagnostic assays for cancer and other genetic testing, and related research tools.
The Group has its headquarters in Nottingham, UK where it operates state of the art reference laboratory facilities, with additional laboratory facilities in London, Cambridge, Oxford and Dublin, Ireland. Source BioScience is CPA, GLP and GCP accredited and is licensed by the Human Tissue Authority.
Further information about Source BioScience can be found at www.sourcebioscience.com
Disclaimer
The Interim Management Statement may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of Source BioScience plc speak only as at the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Source BioScience plc does not undertake to update forward-looking statements to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.
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