Fusion Antibodies plc (AIM: FAB), as the Early Discovery Contract Research Organisation specialising in pre-clinical antibody discovery, announces its unaudited interim results for the six months ended 30 September 2023 and provides an update on recent commercial progress.

Operational highlights

·    Increased numbers of commercial opportunities identified and improving pipeline valuation

·    A number of projects delayed by clients as they seek further investment

·    Progress in development of the OptiMAL® library, with demonstration of whole IgG antibodies expressed on the cell surface

·    £1.67 million fundraise alongside £1.6 million cost rationalisation exercise

·    Appointment of Stephen Smyth as interim CFO

Financial highlights

·    Revenue of £541k (H1 FY2023: £1.9 million)

·    Expenditure on R&D decreased by 60% to £0.18 million (H1 FY2023: £0.45 million)

·    Loss of £1.4 million (H1 FY2023: £1.1 million loss)

·    Cash position at 30 September 2023 was £0.5 million (31 March 2023: £0.2 million)

Post-period highlights

·    Collaboration Agreement with the National Cancer Institute, USA ("NCI") to validate OptiMAL®

·    First AI/ML-AbTM project successfully completed

·    Further pipeline progression and increased rate of deal closures

·    FY2024 results expected to be significantly weighted towards the second half of the year

Commenting on the interim results, Adrian Kinkaid, CEO of Fusion Antibodies plc, said: "During this calendar year, the industry has been experiencing significant headwinds especially in the venture capital ("VC") funded biotech sector. A number of clients have consequently delayed initiating their projects with us. Nonetheless, we have generated a significantly stronger pipeline which includes a wider diversity of clients that are less dependent on VC funding. Consequently, whilst overall revenues for the period are low as previously announced, through our efforts we have benefitted from a trend of increasing month-on-month revenues throughout the H1 FY2024 period, which we hope will continue to strengthen in the remainder H2 and beyond.

"It is particularly encouraging to see our newer offerings also being well received with our first AI/ML-AbTM contract being successfully completed and, post-period end, securing the agreement with the NCI to help validate OptiMAL®. Both of these developments are having a positive impact on market awareness and engagement."