Losses to continue as 4basebio focuses on commercialisation

Specialist DNA-focussed life sciences company 4basebio reported revenue of £0.34m in its final results on Monday, down from £0.46m year-on-year.

The AIM-traded firm said its gross profit was broadly stable for the year ended 31 December at £0.27m, although increased administration and research expenses led to its loss from operations widening to £3.53m from £0.62m.

Its total comprehensive loss for 2021 was £3.84m, compared to a £0.56m loss in 2020, while basic and diluted losses per share widened to 26p from 8p.

The company described 2021 as a “year of considerable progress” in its operational and strategic development.

4basebio said much of the year was focussed on the continuing validation and scaling of its DNA and non-viral delivery platform technologies.

As it entered the fourth quarter, the group said its attention moved toward commercialisation with the development of manufacturing suites near Cambridge.

The group said it invested “heavily” during the year, resulting in its much wider net loss.

With increasing activity, recruitment was said to have been a “key priority” both in the research and development and manufacturing teams, with the firm ending the year with a “strong growth” in headcount during the year and into the first quarter of 2022.

4basebio said it would continue to make a loss in 2022, and would rely on its cash resources, with the board noting that it also had access to a €25m (£21.37m) loan facility with its former parent company 2Invest.

“4basebio operates in a rapidly expanding and exciting market, where we view the commercial opportunity for our synthetic DNA and Hermes technologies with increasing confidence,” said chief executive and scientific officer Dr Heikki Lanckriet.

“The significant progress made during to 2021 has led to our first DNA sales during 2022 and growing interest in our products from partners and prospective customers.”

At 1100 BST, shares in 4basebio were down 9.09% at 500p.