Oncimmune, the Nottingham based early cancer detection company, has announced its interim results for the half year ended 30th November on Tuesday, reporting revenues of £77,000 for the period to 30 November 2017, down from £114,000 during the same time in 2016, while pre-tax losses have gone from £2.4m to £2.8m.
The firm reports continued commercial progress with its ‘EarlyCDT-Lung’ product as a framework agreement with Genostics Company for China was signed.
Oncimmune, which went public with a £66m float in 2016 and has also created the EarlyCDT platform – used for the early detection of lung cancer – says the exclusive licence was for the distribution, manufacturing and future development of all products related to the EarlyCDT platform.
Royalty payments between 8% to 12.5% were agreed, with minimum royalties over the first six years post market entry of £15.7m, and £5m index linked per year thereafter.
A £10m equity investment was also made in Oncimmune, with the first investment tranche of £7m completed on 29 January.
In addition, the company signed new agreements in multiple territories during the period, with the EarlyCDT-Lung kit product now having minimum payment guarantees of £7.9m over the next five years in the Asia Pacific region, not including China.
The EarlyCDT-Lung kit also had a minimum sales commitment of approximately £2.0m over the next five years in Europe.
Oncimmune reported that the first commercial batches of the EarlyCDT-Lung kit were shipped to distributors for introductory testing prior to full market release, adding that its distributor base in the US was now being trained for the sale of our EarlyCDT-Lung test.
CEO Geoffrey Hamilton-Fairley remains positive saying: “Oncimmune continues to make excellent progress in delivering on the potential of our platform to detect up to four years earlier than other methods based on a simple, robust, blood test – a liquid biopsy,” said CEO Geoffrey Hamilton-Fairley.
“We have recently entered an exclusive distribution and product development agreement in China which includes a £10m equity investment and £15.7m in minimum royalties.”
Hamilton-Fairley noted the company had now secured agreements for 12 countries with minimum sales commitments of £25.6m.
“We have also entered a preliminary distribution partnership with a major US pulmonology salesforce which is progressing well and, if successful, should lead to a significant distribution agreement focused on the risk detection of indeterminate pulmonary nodules – a large and growing market.
“With our R&D programme delivering new tests and commercial opportunities in personalised medicine and companion diagnostics, we are excellently placed to deliver value in the medium and long term.”