Horizon shares boosted by 19 per cent interim revenue rise
Horizon Discovery’s UK share price rose 3.25p to 243.25p on early trading after the gene editing world leader hoisted interim revenues 19 per cent to £12.1 million for the six months to June 30.
CEO Dr Darrin Disley (pictured) said the group was poised for transformational scale-up, part driven by its ongoing growth strategy and push for profitability and part through the acquisition of GE Healthcare Dharmacon, Inc. He also reported a significant improvement in group gross margin to 64 per cent – up from 48 per cent in the first half of 2016.
Product revenues increased 10 per cent to £5.3m; a strong H2 pipeline is reportedly in place.
Services delivered revenues of £6.8m, up 30 per cent on the first half of last year with gross margin increased to 57 per cent from 33 per cent as the impact of operational efficiencies were realised.
The closing cash balance of £4.8m has been supplemented post-period by an over-subscribed £80m share placing in August.
The group remains eligible to receive future R & D milestones of up to £208m plus future product royalties through its Research Biotech business.
The transformational acquisition of GE Healthcare Dharmacon, Inc. for $85m was completed post-period.
Based on historical H1:H2 revenue weighting, combined with a strong H2 order book, the group is on track to achieve FY17 revenue of £30m-£33m on an organic basis.
Dr Disley said: “We are very pleased with our progress in the first half of 2017, delivering consistent strong growth as the business continues to scale, and significant margin improvements as steps taken in 2016 to improve operational efficiencies bear fruit.
“The acquisition of Dharmacon will be transformational for Horizon across our markets, creating a business which is the global leader in the application of both gene modulation and gene editing technologies.
“We expect the strong commercial synergies between both organisations to accelerate revenue growth and considerably support the drive to sustainable profitability of the enlarged business.
“With the acquisition and over-subscribed £80 million fundraising complete, and a strong cash position in place, Horizon now has a significant opportunity to embark on an ambitious programme of targeted investment – aggregating the best technologies, IP, and capabilities from around the world to rapidly build a global powerhouse that will help drive the next century of healthcare innovation and better outcomes for patients.”