FY22 (y/e May) is shaping up to be a pivotal year for next-generation, immunodiagnostics firm Oncimmune (ONC ).
Last month CEO Adam M Hill said the business had enjoyed a significant pickup in Q2 after a relatively quiet summer.
Well, today came news that this trend has continued, winning several new clients (eg to help characterise SLE disease) and follow-on contracts. So much so that it’s world-class "ImmunoINSIGHTS service posted its biggest quarter (ended Nov) since launch in Feb’20”.
Similarly, there are other pipeline opportunities which are expected to land this month - which have all been made possible following the over-subscribed £9m placing in March at 180p/share in order to scale up the Dortmund facility & expand sales.
Here, the commercialisation team is being enhanced in the US & Europe - headed up by Cameron Barnard as Chief Business Officer, who is based in Boston (US) & joined in late August.
In terms of the numbers, Singers are forecasting FY22 adjusted EBITDA of £2.2m (vs -£3.4m LY) on sales of £12.1m (£3.7m LY). Climbing to £15.5m & £4.1m respectively 12 months later, reflecting the group's favourable operating leverage & IP rich science (eg Est 80%+ gross margins for ImmunoINSIGHTS).
Adam M Hill, adding: "The commercial momentum we have experienced in Q2’22 has not only resulted in contract wins but is expected to lead to further signed contracts in the coming weeks and, importantly, throughout Q3’22 and beyond. Our key customers continue to provide follow-on contracts and our expanding commercial team is not only growing our commercial pipeline but also delivering a broadening and deepening of our customer relationships."
Ok, so how much is the company worth?
Well hypothetically in the event of a takeover, I would estimate the stock would attract a 4x ‘R&D investment’ multiple (vs 4x Grail & Thrive >5x). Which based on c. £70m spent already on the biobank/tech platform, would generate a theoretical £280m valuation, or around 400p/share vs 170p today.
Onwards & upwards.
