Microsaic Systems tanks as bioprocessing partnership abandoned
Microsaic Systems’ shares plummeted on Wednesday after its global bioprocessing partner terminated their collaboration before reaching the commercialisation phase.
The two companies had completed an integration phase, identified a clear and addressable market, and received “positive feedback” from potential customers before the partnership was abandoned, according to the scientific research company.
However, Microsaic insisted that the cancellation of the partnership would not have a material impact on results or cashflows for the current and next financial years, with the balance sheet projected to remain strong with cash of around £5.4m forecast for the end of the year.
Glenn Tracey, chief executive of Microsaic, said: "It is disappointing that, despite successfully completing phase two of the collaboration, due to its focus on its own internal programs, our partner has decided not to proceed with the commercialisation phase at this time.
Tracey added that the outcomes of the integration phase supported the AIM traded company’s belief that there was “significant opportunity” for its MS instruments in the bioprocessing market.
As such, Microsaic has initiated discussions with other significant global suppliers of equipment for bioprocessing and said it will pursue other opportunities “vigorously”.
"Meanwhile, we are making encouraging progress in our traditional small molecule market where we expect very significant growth next year and beyond," said Tracey.
Microsaic Systems’ shares were down 35.71% at 0.90p at 1241 GMT.