LONDON-listed antibody developer Fusion Antibodies says it continues to experience "a commercially challenging period".
This, it says in a half-year trading update, is due to weak market conditions for investment in new drug discovery and development programmes and the subsequent delays to a number of anticipated contracts.
The company, founded in 2001 as a spin out from Queen's University Belfast, and which works with eight of the top 10 global pharmaceutical companies, said it had anticipated an easing of these constraints, but this has not materialised as quickly as expected.
"Consequently, trading conditions remain very challenging and revenue for the first half of our 2024 financial year is expected to be behind current market expectations, at not less than £541,000," Fusion said in a statement.
It added that is has achieved a marked growth in the sales pipeline with overall values now standing at approximately four times that of six months ago.
Part of the pipeline growth is attributable to enhanced penetration of adjacent markets (including veterinary medicine, diagnostics and research antibodies) in line with it previously stated strategy.
"These factors bode well for the company’s future, provided opportunities can be progressed and converted into work in progress" its statement to the stock market added.
On future outlook it added: "Despite the slower than anticipated recovery in revenue recognition, prospects for growth remain positive and the new novel technologies available to the company will play an important role in differentiating the business and creating fresh value for our shareholders."
Earlier this year Fusion completed what is said was a "difficult" restructuring process, which has involved a new share placing to raise funds, with some directors accepting shares in lieu of their salaries.
Fusion currently operates in a global antibody therapeutics market worth around $200 billion, and since 2012 it has successfully sequenced and expressed more than 250 antibodies and successfully completed over 200 humanisation projects for its international blue-chip client base
