Microsaic shares rise as board reports solid end to year
Point-of-need mass spectrometry developer Microsaic Systems confirmed on Thursday that revenues for the year ended 31 December had “significantly exceeded” 2018, with increasing momentum is being achieved in key areas of its strategy.
The AIM-traded firm said 2019 revenues were expected to be £0.87m which would be 50% higher than the prior year, with stronger sales in the second half being 66% above those reported for the first half.
Gross margins also improved in the second half, and were expected to be around 43% - up from 32% in the first half - reaching 39% for the year as a whole, down from 42% year-on-year.
The company’s cash position at year-end was £2.62m, which was in line with management expectations.
During the year, Microsaic said it made “significant progress” with its strategy for the traditional 'small molecule' market, by signing four new agreements.
Specifically, it highlighted an additional original equipment manufacturer (OEM) agreement with Biometrics Technologies for its ‘4500 MID MS’ detector to be integrated with high performance liquid chromatography equipment, and distributed in south east Asia, South Korea and India.
Three exclusive distribution agreements were signed for the distribution of the 4500 MID MS detector with CM Corporation for South Korea, Chromatec Scientific for Australia and New Zealand, and with ST Japan for the Japanese market.
The year also saw developments with the firm;s strategy for the biopharmaceuticals market, including the launch of the new ‘MiD ProteinID’ product.
That, the board said, could measure in-situ small and large molecules during bioprocessing - at-line, off-line or on-line to the bioreactor - and for rapid protein identification in a “wide range” of separation applications.
Other developments included positive results from a proof-of-concept study for MiD ProteinID technology undertaken by the Centre for Process Innovation, and a partnership with the CPI to demonstrate a working concept for a completely on-line analysis system for real-time control of biomanufacturing.
That, Microsaic said, would be the first such system to measure both large and small molecules, such as target drug proteins, process metabolites and feedstocks, simultaneously and without the need for reagents or “complicated” sample preparation.
The firm also signed a long-term collaboration with the Massachusetts Institute of Technology (MIT, and published data with MIT at the International Federation of Process Analytical Chemistry (IFPAC), which demonstrated on-line small molecule bioprocess capability.
Microsaic said it was targeting a further significant increase in revenues in 2020, underpinned by further extending its MS product offering with the launch of a range of new complete-system products.
With launches planned in the first half, those products would reportedly provide a cost-effective approach to traditional liquid separation, and a “potentially game-changing” approach to protein separation.
It said the new products would be integrated with the company’s current MS technology, and would target research, academia and traditional analysis in pharmaceutical development, chemical synthesis, environmental, and on-line reaction monitoring.
The board said it was expecting its OEM and distribution model to continue to grow both organically and through further partner signings across multiple application areas and geographies.
“I am very pleased with the progress in 2019, and excited by the growing pipeline of opportunities ahead of us, which the board believes will deliver significant growth in the short to medium term,” said chief executive officer Glenn Tracey.
“In particular, our new product releases in 2020 will significantly change our business outlook, as we transition to a complete solution provider, while still maintaining our unique 'compact' value proposition.
“Our business development pipeline has increased momentum, and, in 2020, we expect to grow our targeted direct sales channel as well as sign more deals with partners.”
Tracey said the board was also “delighted” to have extended the company’s collaboration with CPI, as announced in December.
“To our knowledge, there is no other MS technology that can offer a complete suite of product and process analysis in bioprocessing, while simultaneously controlling the biomanufacturing process.
“We have a potentially game changing technology, applicable to all areas of high value drug production, and indeed for many other types of chemical production where real-time analysis is critical to reducing production costs and reducing the costs of non-compliance and failure.”
At 1007 GMT, shares in Microsaic Systems were up 21.82% at 1.34p.