Diaceutics revenue forecast revised upwards to £13.4m
A Northern Ireland pharmaceutical company has said revenue for 2019 will be ahead of expectations after a strong performance.
Diaceutics plc, which floated on the AIM for the first time last year, said full-year 2019 revenue would be £13.4m, compared to last year's £10.4m level.
The firm, which has a market capitalisation of £71m, said client numbers and sales had grown during the year with strong growth in the final quarter.
The Belfast-based company analyses data from patient records and insurance details for use in precision medicine. It has around 100 employees.
In yesterday's trading update, the group said it had benefited from its investment in a strong analytical and innovative team, the expansion and development of its data and international expansion.
Along with operational efficiencies, the changes had resulted in improved margins.
The company said growth in the precision medicine market is expected to be driven by oncology and healthcare data, as well as by expansion of markets like North America and Asia. It's also working on a major platform called Nexus.
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Chief executive Peter Keeling said: "We are pleased to have delivered on both our operational and financial commitments, exceeding full year guidance, while continuing to invest in the long-term future of the group.
"2019 was a key year in expanding our global footprint and deepening our service relationships with key clients and their therapy brands.
"These results provide a solid base for 2020 and the launch of our Nexus platform later in 2020."
Analyst Cenkos said: "In many ways, Diaceutics' growth story is just beginning. The number of precision medicines on the market is expected to double over the next five or so years. The Nexus platform under development will fully productise the business, enable greater scalability, create more efficiencies and accelerate shareholder returns."
The company's adjusted EBITDA for 2019 was also ahead of market expectations, at £2.1m compared to 2018's £1.5m.
The theory behind precision medicine, also known as personalised medicine, is that patients are tested after diagnosis to identify exactly the type or subset of their disease.
They then receive a targeted treatment most suitable for their condition, minimising the risk of enduring potential complications from treatment while seeing little benefit.
Diaceutics uses medical data to guide pharmaceutical companies to ensure that patients are tested earlier and with more reliable diagnostics, with the aim of improving the patient journey and outcome.