Ixico warns on 2024 revenue amid contract delays

Medical imaging analytics company Ixico said in a trading update on Wednesday that, despite ongoing progress in expanding its opportunities pipeline, the first half of 2024 had been marked by extended contracting cycles and delays in securing certain new contracts.

The AIM-traded firm said that as a result, the expected start dates for the contracts had been pushed back, impacting 2024 revenues, projected to range between £5.2m and £5.9m.

It said the delay was expected to have a corresponding effect on 2025 revenues.

However, the company reported a significant surge of over 50% in both the overall value and number of individual opportunities within its pipeline since the start of the financial year.

The opportunities spanned across various biopharmaceutical companies, from biotech startups to large pharmaceutical firms.

Ixico said the expansion effectively doubled the identified opportunities in therapeutic areas such as Alzheimer's disease, Parkinson's disease, and multiple sclerosis, aligning with its diversification strategy.

While specific revenue forecasts would be premature, the firm said the commercial traction offered potential upside to the revised revenue outlook for 2024 and beyond.

As of 29 February, Ixico said it maintained a robust balance sheet, with £2.8m in cash reserves with no outstanding debt.

“Whilst anticipating a challenging first half year of trading, we had expected higher levels of new contract bookings, especially from biotech sponsors, which have not yet materialised, primarily due to client-led delays,” said chief executive officer Giulio Cerroni.

“Since the start of the financial year, we have however seen a notable increase in the value and diversity of our eighteen-month opportunities pipeline.

“This recent increase in engagement across several large pharma and emerging biotech sponsors interested in applying Ixico’s AI analytics tools across a broad range of CNS disorders, provides cause for optimism as we look forwards.”

At 1411 GMT, Ixico shares were down 10% at 7.65p.

Reporting by Josh White for Sharecast.com.