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Fast-growing Horizon Discovery tops expectations

Published: 19:33 26 Apr 2016 AEST

Genes
The research milestone portfolio increased 32% to around £208mln

Gene editing specialist Horizon Discovery Group PLC (LON:HZD) saw strong growth in revenues and a lower than expected loss in 2015.

Total group revenues in 2015 rose 69% to £20.2mln from £11.9mln in 2014, with product revenues up 124% to £7.8mln from £3.5mln the year before and services revenue 69% higher at £12.2mln (2014:£7.2mln).

The underlying loss (EBITDA) of £6.6mln was broader than 2014's loss of £4.0mln but narrower than the market had been expecting.

During the year the company ploughed £5.3mln into research & development (R&D), significantly increasing its product catalogue and service offerings, while sales & marketing expenditure clocked in at £5.1mln.

“This is in line with investment strategy and our 'path to profit' that is expected to enable the company to drive towards profitability as revenues continue to scale,” the company 's chief financial officer, Richard Vellacott, told investors.

Chief executive Dr Darrin Disley said 2015 had been characterised by continued strong growth for Horizon.

"This year has also seen Horizon reinforce our business engine through targeted investments in our internal infrastructure including investment in e-commerce and ERP [enterprise resource planning] systems, the successful integration of our acquisitions, and by establishing new channels to market with partnerships with leading organisations such as ThermoFisher and Abcam for our cell lines and through an increasing number of OEM [original equipment manufacturer] deals for our molecular reference standards,” Dr Disley said.

"Success in the new era of Personalised and Genomic Medicine depends on a precise and deep understanding of patient genetics and an unparalleled expertise in precision gene editing. Horizon is at the forefront of these game-changing areas of medicine, and we remain committed to continuing to deliver our strategy of supplying innovative products, services and research that impact the development of personalised medicines through 2016 and beyond. We are excited about our prospects for the future as we continue to build a world class business," he added.

Shares were up 2.1% at 181.26p in mid-morning trading.

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