20 December 2019
("Physiomics") or (the "Company")
Physiomics plc (AIM: PYC), the oncology consultancy using mathematical models and its Virtual Tumour™ technology to support the development of cancer treatment regimens for the biopharma industry, is pleased to announce that, following a successful collaboration this year its client Merck KGaA ("Merck") has today committed to an initial tranche of projects for 2020 with an aggregate value of £250,000. These projects are expected to be completed during the first six to eight months of the next calendar year, and will span a range of drug targets and treatment types in both pre-clinical and clinical settings.
The Company notes that, if the projects are completed according to the expected schedule, the revenue recognised per month for these Merck contracts during the financial year ending 30 June 2020 will be approximately the same as the previous financial year.
The Master Services Agreement signed on 28 November 2017 remains in place, however, by comparison with prior years where all projects were agreed a full calendar year in advance, some projects will now be signed over the course of the year in order to allow for greater operational flexibility and to allow us to be more responsive as the client's needs evolve. Physiomics expects further contracts to be signed over the course of 2020 however the total expected value of the contracts across the whole calendar year is not yet known with certainty. Despite this, the Company believes that it is currently trading in line with market expectations.
In its 2019 work programme, Physiomics believes it made a significant contribution in helping Merck to identify optimal dosing and scheduling options for a variety of programs in the oncology and immuno-oncology space. Elements of our work have been presented at conferences such as AACR and PAGE (see https://www.physiomics.co.uk/wp-content/uploads/2019/06/PYCPAGE2019_Radiation.pdf)
Dr Jim Millen, CEO of Physiomics, said:
"We're delighted that we'll be continuing our long-term program of work with Merck to provide pre-clinical and clinical predictive modelling services using our continuously evolving Virtual Tumour technology. These initial contracts for 2020 provide a great base upon which to build and we expect further projects to be signed over the course of the full year."
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.
Dr Jim Millen, CEO
+44 (0)1865 784 980
Strand Hanson Ltd (NOMAD)
Richard Tulloch & James Dance
+44 (0) 20 7409 3494
Hybridan LLP (Broker)
Claire Louise Noyce
+44 (0) 20 3764 2341
Notes to Editor
Physiomics® is an oncology consultancy which uses mathematical PKPD models as well as its proprietary Virtual Tumour™ technology to predict the effects of cancer drugs and treatments and improve the success rate of drug discovery and development projects. The predictive capability of Virtual Tumour has been confirmed by 55 projects, involving over 25 targets and 60 drugs, and has worked with clients such as Merck KGaA, Merck & Co, Bayer and Lilly.
Based in Oxford UK, the Company works with clients worldwide to support their pre-clinical and clinical oncology development programs. Its team of scientists and computer modelling experts provide bespoke solutions encompassing data, analytics and insight.
Physiomics senior management has academic and commercial expertise, including over 90 years collectively of working in oncology and/or computational biology and over 100 publications in peer reviewed journals.
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