What IXICO does
IXICO PLC’s (LON:IXI) data analytics services are used by the global biopharmaceutical industry to interpret data from brain scans and digital biosensors to enable better trial design, site qualification, patient selection and clinical outcomes.
The company’s digital platform and Artificial Intelligence (AI) software manages and helps interpret images from MRI (magnetic resonance imaging) and PET (positron emission tomography) scanners as well as collating and making sense of real-world data from wearable biosensors.
How it is doing
Ixico expects revenue growth of “at least 25%” year-on-year in the six months ended 31 March.
While clinical trials are affected by restrictions to stop the coronavirus pandemic, the firm’s “strong order book and operational improvements” implemented before the outbreak led to a “significant backlog of image analysis and other revenue-generating project requirements for short-term completion and delivery” that did not require travel to sites to complete.
Revenues in the second half are expected to slow down as activities are delayed by its pharmaceutical sponsors, but sales will pick up once operations start again.
In April it secured a “substantial new contract” for a late-phase open-label study into Huntington’s disease for £10.5mln, bringing the total value of new deals signed in the financial year-to-date to £15mln.
What the boss says: Giulio Cerroni, chief executive
“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.”
What the broker says
Analysts at Cenkos Securities said they thought the company was in a “robust position despite the current environment” and its long-term prospects “remain strong”.
Cenkos added that the £10.5mln contract win was “evidence of IXICO’s ability to operate and win new business” amidst the uncertainty caused by the pandemic.
- Paused activity to restart after coronavirus outbreak
- Margins are increasing as more companies use its AI-based algorithms
- Working also with smaller biotechs as well as large pharmas
Published at Thu, 16 Apr 2020 09:50:00 +0000-IXICO to be ‘start-up ready’ for customers after coronavirus outbreak