Interim Management Statement

SOURCE BIOSCIENCE PLC - Interim Management Statement

PR Newswire

London, May 15

Source BioScience plc (LSE: SBS), the international diagnostic and geneticanalysis services business, today publishes its Interim Management Statementfor the year to date.

Unless otherwise stated, the financial information referenced below refers tothe four months ended 30 April 2013, and the corresponding period last year,this being the latest practicable date to which financial information has beenprepared.

Overall business performance

Source BioScience has seen a period of sustained growth during the first fourmonths of 2013, with increased revenue compared with the same period last year.This performance has been underpinned by continued progression of theHealthcare Diagnostics business and LifeSciences' DNA sequencing services.

The Group had £1.4 million of cash at the end of April (31 December 2012: £1.1million) after investing net £1.4 million in the acquisition of InverclydeBiologicals Limited (`Inverclyde Biologicals').

The Group is trading in line with management expectations, continuing to buildon a strong operational performance last year, and the Board remains confidentof the outlook for the full year.

Healthcare division

The Diagnostics offering was enhanced during 2012, including the developmentand validation of proprietary gene-based assays for use as companion diagnostictests. This expansion of the portfolio of assays, coupled with continued growthin the core expert histopathology service, generated an increase in Diagnosticsrevenue of more than 35% in the period compared, with last year. We believe thegrowing demand for gene-based testing strengthens our commercial advantage aswe are one of only a limited number of accredited laboratories in Europe withthe capability to deliver this type of complex testing.

In February we announced the renewal of the York Teaching Hospital NHSFoundation Trust liquid based cytology contract, together with the installationof the seventh BD FocalPoint™ platform. The contract is worth £1.3 million overthree years.

In April, the Group acquired Inverclyde Biologicals, based in Motherwell,Scotland. Inverclyde Biologicals is a market leading manufacturer of highquality diagnostic kits and blood group serology reagents, a product portfoliowhich is complementary with the exiting Source BioScience healthcare productsbusiness. The acquisition creates cross-selling opportunities, brings expertisein designing and manufacturing clinical grade reagents and also enablesgeographic expansion into Scotland, providing the opportunity to establish anOvernight Service for DNA sequencing locally. Substantial progress has alreadybeen made towards crystallising a number of these new opportunities.

LifeSciences division

Our ambition is to become Europe's leading commercial provider of DNAsequencing and our Overnight Service is instrumental in achieving this. Ourmarket share in the UK continues to increase and during the period, revenuefrom this division increased by more than 25% compared with the same periodlast year.

In March, we launched the reSource™ range of own branded products, initiallyfocused on the critical life science research work flow requirements for DNAextraction and preparation. It is our intention to migrate the majority of ourproduct portfolio across to the reSource™ branding, which will eliminateexisting geographical commercial restrictions and expand our addressablemarket. All of the Group's products will be available through GenomeCube® whichwe regard as a major element of the growth strategy for the medium to longerterm. This will be achieved by accelerating the globalisation of the productsbusiness, enabling our distributors, and customers, fast and ready access tothe enhanced product portfolio.

Conclusion

Although still early in the year, we have made a very encouraging start. SourceBioScience believes this recent period's performance reflects the substantialopportunities we see for growth and development across both our Healthcare andLifeSciences divisions.

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About Source BioScience

Source BioScience plc (LSE: SBS) is an international diagnostic and geneticanalysis services business serving the healthcare and research markets. TheLifeSciences division provides core laboratory research support fromconceptualisation to implementation, calling upon a wide range of cutting-edgetechnology platforms including an online catalogue of biomolecular tools. TheGroup is a trusted provider of a complete range of sophisticated microarray,next generation and conventional sequencing services. GLP, GCP and CPAaccreditations make the sequencing offerings also very attractive forapplications in regulatory studies or clinical settings. Its Healthcareoperations provide screening products for cancer and other applications, inaddition to reference laboratory diagnostic testing for cancer and otherdiseases, in conjunction with predictive testing for treatment optimisation.The Group has its headquarters in Nottingham, UK. Further information aboutSource BioScience can be found at www.sourcebioscience.com.

Disclaimer

The Interim Management Statement may contain forward-looking statements. Bytheir nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances. Actual outcomes and results maydiffer materially from any outcomes or results expressed or implied by suchforward-looking statements. Any forward-looking statements made by or on behalfof Source BioScience speak only as at the date they are made and norepresentation or warranty is given in relation to them, including as to theircompleteness or accuracy or the basis on which they were prepared. SourceBioScience does not undertake to update forward-looking statements to reflectany changes in the Group's expectations with regard thereto or any changes inevents, conditions or circumstances on which any such statement is based.