29 March 2018

NetScientific Full Year Results for the year ended 31 December 2017

 

London, UK – 29 March 2018 - NetScientific plc (AIM: NSCI), the transatlantic healthcare IP commercialisation Group, announces its full year audited results for the year ended 31 December 2017 1

 

Financial highlights (including post-period end highlights)

 

  • Narrowed losses after tax to £9.4 million (2016: loss £13.1 million) reflecting progression of portfolio companies and additional reduction in Group central costs
    • Three portfolio companies have progressed to commercialisation and two companies remain in the development phase
    • Losses also reduced following sale of OncoVerse and restructuring of Wanda
  • Cash and cash equivalents of £6.9 million (2016: £9.5 million)
  • Cash used in operations was reduced to £10.7 million (2016: £12.9 million)
  • The Group gained cash from investing activities due to the sale of OncoVerse for £1.5 million, and a placing of 17,962,362 shares raising net funds of £7.5 million in June 2017
  • The Group intends to raise at least £5.0 million before costs via a conditional placing and subscription of new ordinary shares in the Company, subject to shareholder approval at a General Meeting, currently expected to be on 16 April 2018.

 

Operational highlights (including post-period end highlights)

 

Portfolio progress:

 

ProAxsis Ltd (“ProAxsis”)

 

  • Technology and portfolio of products progressing well

 

  • NEATstik®
    • Registered CE Mark for measuring active neutrophil elastase (post-period end January 2018)
    • First sale to a research laboratory conducting a respiratory clinical trial in collaboration with a pharmaceutical company (post-period end February 2018)
  • ProteaseTag® Active Plasmin Immunoassay
    • Registered CE Mark and launched for application across a broad range of diseases including lung disorders such as idiopathic pulmonary fibrosis (IPF) and acute respiratory distress syndrome (ARDS) (post-period end January 2018)
  • ProteaseTag® Active Neutrophil Elastase Immunoassay
    • Commercialisation progressing well with sales acceleration in the year
    • Data presented at the North American Cystic Fibrosis Conference in November 2017 demonstrating greater scope of research applications
  • Partnered with National Jewish Health, a leading respiratory hospital in the United States, for the hospital to investigate ProteaseTag® technology in real-time, as a potential companion diagnostic for a variety a range of respiratory diseases including Cystic Fibrosis and COPD
  • Partnered with a large US-based biotechnology company to develop immunoassays for two key respiratory proteases utilising ProteaseTag® technology
  • Expanded distribution contract with Diagenics, which currently sells the Neutrophil Elastase Immunoassay, to include the distribution of the ProteaseTag® Active Plasmin Immunoassay in the UK and Ireland
  • Awarded grant from Innovate UK to support the development of new protease therapeutics using ProteaseTag® technology
  • Second licensing agreement with Queen’s University Belfast for exclusive IP rights to enable ProAxsis to further enhance its current product offering
  • Multiple abstracts on all products presented at the American Thoracic Society Conference in May 2017

 

 

Glycotest, Inc. (“Glycotest”)

 

  • Continued development of non-invasive blood tests for liver cancers and fibrosis-cirrhosis

 

  • Positive clinical results from clinical evaluation of its HCC Panel in patients with Hepatocellular Carcinoma (HCC), the most common form of liver cancer (post-period end January 2018)
  • Strengthened IP position by expanding the patent to cover the US, Europe, China, Australia and Japan
  • Glycotest continues to work with its potential partner and now expects to close the Series A during first half of 2018

 

Operational highlights (including post-period end highlights) continued

 

Vortex Biosciences, Inc. (“Vortex”)

 

  • Commercial progress, peer-reviewed data and further research to validate its circulating tumour cell (CTC) technology

 

  • Launched the VTX-1 Liquid Biopsy System into the research market at the Molecular Medicine Tri Conference (Tri-Con) in February 2017 with key placements including UCLA and Stanford University
  • First commercial sale of the VTX-1 Liquid Biopsy System
  • Multiple abstracts published in:
    • Nature Communications and presented at American Association for Cancer Research (AACR) Annual Meeting in April 2017 further validating its technology and adding to a growing body of literature on the patented microfluidic technology, underscoring the role it can play in enhancing our understanding of cancer biology
    • Nature Partner Journals Genomic Medicine demonstrating the use of its CTC technology in capturing and examining CTCs from patients with colorectal cancer
    • Nature Scientific Reports describes the use of the Vortex’s technology in capturing CTCs, in combination with the use of a novel immunofluorescence assay, for measuring programmed cell death ligand 1 (PD-L1) expression on the surface of the CTCs from patients with metastatic NSCLC (post-period end February 2018)
  • Two clinical trials initiated in collaboration with UCLA to evaluate the use of CTC technology in stratifying suitable patients with Non-Small Cell Lung Cancer (NSCLC) for treatment with novel immuno-oncology therapeutics
  • Vortex currently has four VTX-1 Liquid Biopsy Systems placed in leading oncology institutions’ research facilities
  • Vortex announced a collaboration with BioView BIOV: (TLV) for Clinical Biomarker Identification on Circulating Tumour Cells in March 2018

 

 

Wanda, Inc. (“Wanda”)

 

  • Continued roll-out of remote health management technology

 

  • Commenced roll-out of its remote health management technology to Health Resource Solutions’ patient network with the aim to expand use of Wanda technology to all patients, following successful trial evaluation involving congestive heart failure patients
  • Shareholding in Oncoverse, Wanda’s digital health platform, sold to BTG plc, representing a good return on investment and successful exit from Wanda’s first downstream application
  • Strengthened IP to significantly extend protection of Wanda’s technology across US applied for remote health and patient management

 

 

PDS Biotechnology Corporation (“PDS”)

 

  • Continued research into application in combination therapies

 

  • Collaboration with Merck & Co for the evaluation of the combination of its Versamune®-based PDS0101 immunotherapy treatment with Merck & Co’s anti-PD-1 therapy, KEYTRUDA® (pembrolizumab) in a Phase 2 clinical trial in patients with head and neck cancer and high-risk human papillomavirus-16 (HPV16) infection
  • PDS aims to complete a financing in H2 2018, providing the additional funds required to initiate several planned clinical trials, including the collaboration with Keytruda, Merck’s leading checkpoint inhibitor

 

“The Group made some excellent progress over the course of year, with all of our core portfolio companies continuing to advance towards their strategic and commercial goals. We have been encouraged by the commercial progress made by Vortex and ProAxsis, both of which launched products and registered initial sales during the period, and Wanda, which continues to expand its technology into the fast-growing digital health market. With the launch of a £5.0 million fundraise, we are well placed to continue this progress and we look forward to further value catalyst as we move further into 2018."

Francois Martelet

CEO of NetScientific

1 extracted from audited accounts that have not yet been delivered to Companies House)

 

For more information, please contact:

 

NetScientific

François R. Martelet, M.D., CEO

Ian Postlethwaite, CFO

Tel: +44 (0)20 3514 1800

Stifel Nicolaus Europe Limited (NOMAD and broker)

Jonathan Senior/ David Arch/ Ben Maddison

Tel: +44 (0)20 7710 7600

 

Consilium Strategic Communications

Mary-Jane Elliott / Jessica Hodgson / Chris Welsh / Laura Thornton

 

Tel: +44 (0)20 3709 5700

netscientific@consilium-comms.com

 

About NetScientific

NetScientific is a transatlantic healthcare technology group with an investment strategy focused on sourcing, funding and commercialising technologies that significantly improve the health and well-being of people with chronic diseases. For more information, please visit the website at www.netscientific.net

 

 

This announcement contains certain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events.  By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances.  Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward looking statements. Any forward-looking statements made by or on behalf of the Group are made in good faith based on the information available at the time the statement is made.  No representation or warranty is given in relation to these forward-looking statements, including as to their completeness or accuracy or the basis on which they were prepared, and undue reliance should not be placed on them.  The Group does not undertake to revise or update any forward-looking statement contained in this announcement to reflect any changes in its expectations with regard thereto or any new information or changes in events, conditions or circumstances, save as required by law and regulations.  Nothing in this announcement should be construed as a profit forecast.

 

***Please read the full report here***


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