IXICO provides an update on new and current contracts

IXICO plc (AIM: IXI), the data analytics company delivering insights in neuroscience, today announces an update on contracts: 

·   Two new biopharmaceutical client contracts with combined value of over £1m

·   Award of a significant change order to Phase III Huntington's disease contract worth c£0.9 million

·   Discontinuation of a study with no impact on FY19 revenue; reduction of contract revenue of £3.5m over the full term of the agreement to 2025

·   Confirms confidence in the current year market expectations and the outlook for next year

The Company has secured contracts with two new biopharmaceutical clients for the provision of data analytics services to support clinical trials taking place in North America and Europe. With a combined contract value of over £1m, these studies will run for approximately 2 years.

IXICO has also been notified that its largest ongoing Phase III study with a top five pharmaceutical client, previously announced in September 2018, will be expanded. The expansion will see IXICO deploy its AI-enabled algorithms to analyse additional data from the study. The resulting change order is worth over £0.9m, to be delivered over three years, to 2022.

Following an interim data review, an existing client has notified IXICO of its plans to discontinue a study. This change notification is not anticipated to impact the remainder of financial year 2019. The total impact of the study cessation is a £3.5m reduction in contract value over the full term of the agreement to 2025.  

Giulio Cerroni, Chief Executive Officer of IXICO, commented:

"We are delighted to welcome two new clients to the IXICO fold and expand our services with a longstanding client.  However, we recognise that clinical research programmes at the forefront of neuroscience are not without risk.  Client change notifications are an industry norm, reflecting the key decisions made by our clients in the course of their clinical research studies as they learn more about the safety and efficacy of their drug assets. The Board is confident of meeting market expectations in 2019 and, underpinned by the Company's strong order book, is optimistic about the prospects of the Company."

For further information please contact:

IXICO plc

+44 (0) 20 3763 7498

Giulio Cerroni, Chief Executive Officer

Grant Nash, Chief Financial Officer

 

Cenkos Securities PLC (Nominated adviser and sole broker)

+44 (0) 20 7397 8900

Giles Balleny / Max Gould (Corporate Finance)

 

Michael F Johnson / Russell Kerr (Sales)

 

Optimum Strategic Communications

 +44 (0) 203 950 9144

Mary Clark / Anne Marieke Ezendam / Supriya Mathur

 

IXICO@optimumcomms.com


Date: 09/08/2019