Asterand (LON:ATD) reported 30 percent year-on-year revenue growth in the third quarter, as it continues to reap the benefits of the BioSeek acquisition.
The company said that BioSeek integration is progressing well and revenues are on track to meet its projections.
Revenue was up 30 percent to US$5.4 million in the three months ended 30 September 2010. The base tissue business achieved 9 percent revenue growth in the period.
"2010 has been a year of bedding down our acquisition of BioSeek, diversifying our client base beyond large pharma and building our business with the government,” chief executive Martyn Coombs said.
“Through these efforts we've added significant diagnostic customers.”
Asterand completed the BioSeek acquisition in February 2010, thus expanding its tissue supply business to include new contracted research capabilities. BioSeek’s proprietary drug profiling technology is used to assess new drugs as they are being developed.
Crucially Asterand highlighted that the last revenue figures do not include the ‘game changing’ tissue supply contract with the America’s National Cancer Institute, which was awarded in early October.
Asterand will provide bio-specimens to the NCI as part of the prestigious Cancer Genome Atlas, it is worth an initial U$5 million and up to US$24 million over five years.
“We are encouraged by our revenues in Q3, particularly as we have not yet recognised any revenue from our new contract with the NCI,” Coombs added.
“Our contract with the NCI is a game changer that offers the possibility of a step change in the business.”
“These efforts set a sound foundation for our future growth."
Overall Asterand has generated US$14.1 million in revenue in the first nine months of 2010, with US$3.8 million being contributed by the BioSeek business.
Additionally the company emphasised that it continues to control expenditure, with cost savings reaching $0.3 million per month in August.
On 30 September Asterand had US$2.9 million in cash resources.