TIDMIXI
RNS Number : 4607J
IXICO plc
14 April 2020
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 (MAR)
14(th) April 2020
IXICO plc
("IXICO" or the "Company")
GBP10.5m contract win, update on trading for the period ended 31
March 2020, and commentary on potential impact of COVID-19
pandemic
New contract win
IXICO plc (AIM: IXI), the data analytics company delivering
insights in neuroscience, is pleased to announce today the signing
of a substantial new contract for a late-phase open label study in
Huntington's disease (HD). The four-year contract runs to 2024 with
a total value of GBP10.5 million with the expectation that the
majority of the revenue will be generated in 2022 and 2023. This
brings the total value of the new contracts signed to-date in the
current financial year to GBP15 million.
Late-phase open label studies enable pharmaceutical companies to
investigate, and potentially demonstrate the clinical benefits of,
the continued access to novel treatments for patients who have
completed the preceding randomised controlled trials. Additionally,
such studies allow patients to continue treatment while those
treatments are being considered for regulatory approval.
Consequently, as these are patients from existing or previous
trials, enrolment onto this new late-phase open label study is
currently expected to be less impacted by COVID-19 than other
trials, with an estimated 1000 subjects in Europe, N. America &
Asia currently anticipated to begin enrolment during the summer of
2020.
Trading for the period ended 31 March 2020
IXICO expects to report revenue growth for the six months ended
31 March 2020 of at least 25% compared to the corresponding period
in the previous financial year . The Company finished the half year
with GBP6.7m of cash and no debt. Confirmation of the Company's
revenues for the first six months of the year as well as its order
book position at 31 March 2020 will be announced later in April.
The full financial results for the six months ended 31 March 2020
will be announced during May 2020.
COVID-19
The COVID-19 outbreak has affected all businesses in multiple
ways. By leveraging its TrialTracker(TM) Technology platform, IXICO
has rapidly adapted its remote-access, single operational site
business model and implemented new working practices to enable all
staff to work remotely from home. This has enabled the Company to
prioritise the safety of its staff while also minimizing disruption
to the current active clinical trial projects for which the Company
is contracted to supply medical imaging data analytics.
Clinical trial operations have been affected by the ongoing
travel restrictions and social distancing policies put in place by
governments across the world and several pharmaceutical companies
have already announced suspensions or the slowing down of clinical
trials. COVID-19 could also lead to clinical sites being
quarantined or closed down, as well as further restrictions on
travel and interruptions to the supply of investigational product
to patients.
However, due to its strong order book and operational
improvements implemented prior to the COVID-19 outbreak in areas
such as site qualification and site start-up, the Company has a
significant backlog of image analysis and other revenue generating
project requirements for short-term completion and delivery. Given
the IXICO business model is based on remote interactions with
imaging sites, there is no requirement for travel to site visits by
the Company's personnel to complete this backlog.
Outlook
The Company expects a slowdown in revenues in the second half of
the financial year ending 30 September 2020 as ongoing work on
clinical trial projects is necessarily deferred and new projects
delayed into the next financial year by its pharmaceutical
sponsors. Given the nature of these trials, however, the Company
expects that any deferred project activity would be reactivated in
future periods, enabling IXICO to recoup the related deferred
revenue in due course.
By continuing to carefully manage its expenditure and with the
benefit of a strong, debt-free balance sheet and robust order book,
IXICO is well-placed to face the anticipated impacts of the
COVID-19 pandemic. This gives the Board increased confidence for
revenue growth in the medium to long-term; however, due to the
uncertainty around the level and duration of disruption to clinical
trial operations due to COVID-19, the Board is not currently able
to provide clarity regarding the outlook for 2020. Further updates
will be provided once there is greater visibility on the trading
environment.
Giulio Cerroni, Chief Executive Officer of IXICO, commented:
"IXICO is working hard to meet the needs of our clients and to
minimize disruption to clinical trials during this time of
uncertainty. As well as sustaining service levels, we are
coordinating with our pharmaceutical clients, as per FDA guidance,
to ensure patients safety in trials as the pandemic continues. The
new HD contract highlights how the pharmaceutical industry is
continuing to support studies where patients face life-limiting
conditions, particularly where discontinuing treatment would risk
the patient's long-term well-being.
"Whilst implementing the necessary response to mitigate an
anticipated near-term slowdown in revenues and a constraint on
market development opportunities, we will continue to make our
technology-enabled services as efficient and agile as possible. We
plan to be 'start-up ready' when clients re-initiate studies that
have been suspended or slowed down and, despite these extraordinary
times, we face the future with cautious confidence."
Charles Spicer, Chairman of IXICO, added:
"I would like to thank Giulio, Grant and all the team at IXICO
for their highly responsive and effective teamwork in meeting the
initial disruption of COVID-19. Maintaining growth and winning a
major new contract against global headwinds is evidence of a
well-run business. The Board thanks our colleagues, our clients,
and our suppliers for all their support and, of course wish them
and their families the best of health."
For further information please contact:
IXICO plc +44 (0) 20 3763 7498
Giulio Cerroni, Chief Executive Officer
Grant Nash, Chief Financial Officer
Cenkos Securities PLC (Nominated adviser
and sole broker) +44 (0) 20 7397 8900
Giles Balleny / Max Gould (Corporate Finance)
Michael F Johnson / Russell Kerr (Sales)
Optimum Strategic Communications +44 (0) 203 922 0891
Mary Clark / Supriya Mathur / Manel Mateus
IXICO@optimumcomms.com
About IXICO
IXICO's purpose is to advance medicine and human health by
turning data into clinically meaningful information, providing
valuable new insights in neuroscience.
Our goal is to be a leading proponent in the use of AI in
clinical development, to improve biopharma R&D productivity
through the adoption of breakthrough data analytics in precision
healthcare. Through the deployment of novel AI algorithms, we
analyse and interpret brain scans and digital biosensor data to
enable better trial design, patient selection and ultimately
clinical outcomes across all phases of clinical evaluation. Our
data analytics services are deployed on some of the most important
clinical trials in neuroscience, providing valuable insights to
disease progression and patient safety, enabling our clients to
make better informed decisions earlier in the clinical development
pathway.
More information is available on www.IXICO.com
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