4basebio losses widen as it progresses commercial development

27th Sep 2024 11:24

(Sharecast News) - 4basebio, a biotechnology company specialising in synthetic DNA products and nucleic acid delivery platforms, reported revenue of over £0.3m for the six months ended 30 June on Friday.

The AIM-traded company said its order book stood at more than £0.6m at the end of the first half, reflecting strong growth in high-value HQ and GMP opportunities.

Notably, it signed a supply agreement with a tier-one pharmaceutical company and provided DNA for the manufacture of mRNA used in a first-in-human clinical trial.

Additionally, the company filed five new patents during 2024.

Financially, 4basebio announced a £40m cash investment on 29 July, bolstering its cash reserves, which stood at £2.7m as of 30 June.

Despite the revenue growth, the company reported a loss of £5.7m for the first half, widening from a £3.6m loss in the same period last year.

Net cash outflow from operating activities also increased, to £5.1m, compared to £3m in the first half of 2023.

The firm said it remained focused on leveraging its technology to drive further growth in the advanced therapy medicinal products sector.

"We are pleased with our progress to date with the achievement of notable milestones in our commercial development, including the agreement to supply HQ and GMP synthetic DNA to a tier one pharma as well as the supply of DNA for the production of mRNA for use in a first in human vaccine programme," said chief executive and chief scientific officer Dr Heikki Lanckriet.

"We continue to see strong and growing interest in synthetic DNA and expect 2024 revenues to represent a significant step change to 2023.

"We believe there is continued significant value creation potential through ongoing investment in our synthetic DNA platform, with the opportunity to develop additional novel nucleic acid products to further reinforce 4basebio's unique market position and highlighting the flexibility of the technology platform."

Dr Lanckriet said the company's 'Hermes' delivery platform was also progressing well, with considerable promise both in the delivery of DNA and mRNA payloads.

"We are delighted to have reached agreement with Elevage Medical Technologies, a Patient Square Capital platform and Prudential Assurance Company acting by its investment manager M&G Investment Management for an investment of £40m, subject to regulatory approval.

"The funding will underpin the commercial growth of the company and the continued investment in the platforms.

"We see this step as further validation of our stated ambition to become the leading player in the supply of DNA for cell and gene therapies and vaccines."

At 0932 BST, shares in 4basebio were up 1.04% at 1,404.4p.

Reporting by Josh White for Sharecast.com.