Oncimmune Holdings plc Announces Intention to Float on AIM
OREANDA-NEWS. Oncimmune Holdings plc, ("Oncimmune" or the "Company" or the "Group") a leading early cancer detection company developing and commercialising its proprietary EarlyCDT® platform technology, today announces its intention to apply for admission of its issued and to be issued Ordinary Shares to trading on AIM, a market operated by London Stock Exchange plc ("Admission"). Dealings are expected to commence in the middle of May 2016 with an expected market capitalisation of approximately ?66m. Zeus Capital Limited is the Nominated Advisor and Broker to the Company.
· Oncimmune has pioneered the development of autoantibody tests that have the potential to detect cancer up to four years earlier than other methods and can be applied to a very wide range of solid tumour types.
· Oncimmune's first product, EarlyCDT®-Lung, was launched in 2012, as a CLIA test in the USA. Since then over 140,000 commercial tests have been sold.
· EarlyCDT®-Lung is being used in the world's largest randomised trial for the early detection of lung cancer using biomarkers ever conducted, the National Health Service (NHS) Scotland ECLS study of 12,000 high-risk smokers.
· Oncimmune intends to develop an EarlyCDT®-Lung test 'Kit' and expand into new geographic markets, in particular Asia.
· Oncimmune also intends to develop EarlyCDT® tests for liver and ovarian cancer to launch within the next two years.
· The global market for cancer diagnostic products is forecast to grow from c.$100bn in 2014 to approximately $170bn in 2020. The underlying driver of growth in cancer diagnostics is the dramatic improvement in patient survival when cancers are detected at earlier stages.
Geoffrey Hamilton-Fairley, CEO of Oncimmune said: "The early detection of cancer is a critical issue for cancer. Five-year survival for lung cancer, the biggest cancer killer, averages around 17% for all stages, but for patients diagnosed early the 5-year survival rate is as high as 90%. Our EarlyCDT® platform technology is proven and we believe Oncimmune is now at an inflexion point and poised for significant growth. This IPO will enable Oncimmune to invest in the further development and commercialisation of our platform."
The Group's strategy is to exploit the commercial opportunity of the EarlyCDT® technology across multiple cancers. The Group aims to do this in three principal areas:
· Early detection of cancers;
· Risk assessment of lung nodules; and
· Companion diagnostics.
In addition to the survival benefits, the economic drivers for early cancer detection are compelling, with the cost of early surgical intervention being significantly less than later stage treatments including chemotherapy.
Reasons for Admission
The Directors believe that the Group has reached an inflexion point: its EarlyCDT® platform technology for the early detection of cancer is proven and clinical utility and commercial sales of its lead product, EarlyCDT®-Lung, is established. The next phase for the Group is the execution of its commercial growth strategy, focusing on completing the EarlyCDT®-Lung Kit - to increase sales and margins and open up additional markets, particularly in Asia, as well as broadening its product offering with EarlyCDT® in Liver and Ovarian cancers, among others. Accordingly, the Directors believe that Admission will provide the Group with the capital to invest further in the commercial infrastructure and product development required to accelerate and deliver the Group's growth strategy.
Summary of the Placing and use of proceeds
The Placing is expected to raise approximately ?11 million by way of issue of new shares to institutional investors.
The net proceeds of the Placing will enable Oncimmune to invest further in the commercial infrastructure and product development required to accelerate and deliver the Company's growth strategy, in particular:
· develop and complete a Kit version of the EarlyCDT®-Lung test;
· validate and launch EarlyCDT® tests for liver and ovarian cancers;
· validate the autoantibody "fingerprint" personalised medicine test;
· establish companion diagnostic programmes with partners; and
· provide the general working capital requirements of the Group.
In addition, the Directors believe that Admission will (i) enhance the Company's profile, (ii) enable the Company to recruit and retain more effectively key personnel through a suitable incentivisation programme, and (iii) enable the Company to take advantage of future acquisition and investment opportunities by more readily using its Ordinary Shares as consideration.
Oncimmune is a leading early cancer detection company, developing and commercialising its proprietary EarlyCDT® platform technology. The Group has pioneered the development of tests based on the presence in the blood of autoantibodies against specific tumour associated antigens that have the potential to detect cancer up to four years earlier than other methods of cancer detection, such as a chest X-ray, Spiral CT or emerging technologies that do not benefit from the amplification of signal that occurs with the immune system, and can be applied to a very wide range of solid tumour types.
Oncimmune USA launched its first product, EarlyCDT-Lung®, in 2012, as a CLIA test in the USA. Since then over 140,000 commercial tests have been sold. The Company intends to further develop the test into a 'Kit' to increase both volume and profit margins through expansion into new geographic markets, in particular Asia. Further, Oncimmune intends to develop the test for other cancers, in particular liver and ovarian cancers which it aims to launch in these indications within the next two years.