14th Oct 2024 15:34
(Alliance News) - Oxford BioDynamics PLC on Monday launched a strategic review after warning it would need additional cash resources by early 2025.
In response, shares plunged 56% to 1.60 pence each in London, giving a market value of GBP4.9 million.
The company, which specializes in the development of precision medicine tests for critical diseases, said the review would explore available funding options.
These would include a licensing or sale of company assets - such as the EpiSwitch NST and EpiSwitch SCB tests - and a possible hive-off of the US business into a separately funded entity.
At present, the review does not envisage a takeover offer for the company.
Oxford BioDynamics said it has started a series of cost-saving actions that will materially reduce the business's monthly cash cost base.
As part of these plans, directors and certain other senior staff have agreed to take 25% of their net pay in newly issued shares for the foreseeable future. Chief Executive Officer, Jon Burrows will take 35% of his net pay in newly issued shares.
Nonetheless, the company will require additional cash resources by early first quarter of 2025, it said.
The company said CiRT orders in the second half of the financial year were 25% higher on the first half. The final financial quarter ended with 95 tests for September, bringing the total number of tests ordered since launch to 1,266. A total of 671 tests were ordered in the financial year.
In addition, the firm reported PSE has grown steadily with orders in the second half of the year increased by 86% to 483 tests from 259 tests in the first half. More than 90 tests were ordered in each month in the last quarter to the end of September, the company added.
On a positive note, the firm noted PSE has received a high level of attention within the industry.
This has led to ongoing discussions with two of the leading diagnostic services companies in the US for a distribution deal that would widen access to the test and have the potential to add significant volume.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.