NextGen losses widen in 07 but restructuring on track, profits targeted for 1H09
NextGen Group plc, a provider of biomarker services for pharma and biotech companies around the world, said turnover for the financial year ended December 2007 grew 18.5%. to £1.68m.
The pre-tax loss for the year widened to £3.32m from £2.9m in 2006.
Chief Executive Michael Pisano said: "In November last year we initiated a strategic review, which indicated that we need to focus all our resources on growing the biomarker service business, covering testing, assay development and discovery - a market which has real growth opportunities.
A biomarker is an entity used as an indicator of a biologic state. It can be measured from a clinical sample, such as blood or urine, and evaluated as a gauge of normal biologic processes, pathogenic processes, or pharmacologic responses to therapeutic intervention.
"We have already established an impressive reputation for the quality and scope of our contract research services in the areas of Proteomics and biomarkers. The market for biomarkers is predicted to grow to greater than $21bn in the next five years", Dr Pisano said.
"We plan to take advantage of our position and build on the opportunities in this very specialist but high margin market."
The share price increased 2.4% on the news, valuing the Cambridge-HQed group at just over £4m.
Dr Pisano said 2008 would be a pivotal year for NextGen. The Pharmaceutical industry has gone through a period of low productivity and a lower spending in research, which has resulted in many large pharmaceutical companies entering a period of restructuring and downsizing.
He said the Group had already made good progress with its biomarker business, with projects in therapeutic areas such as oncology and Alzheimer's disease for pharmaceutical and biotechnology customers due for delivery in mid 2008.
"Upon completion of the restructuring plan the Group is targeting to be profitable and cash generating during H1 2009." He said.
The operating loss before exceptional costs was £2.86m, a slight improvement on the 2006 figure of £2.89m.
Four times in 2007 the Company went to market to raise a total of £3.4m.
