Sosei Group soars back to profit after stunning performance in 2019
Sosei Group Corporation, which has substantial Cambridge operations, rocketed back to profitability in the year to December 31 on the wings of strong growth in milestones, upfront fees from new partnerships plus royalty payments received.
Revenue totalled $89.2 million – an increase of $57m on the prior period. Cash profit totalled $25.7m against a cash loss of $51.7m as a result of strong revenue growth and tight cost management. The company remains well capitalised, with cash of $140.3m.
Shinichi Tamura, chairman, president and CEO of Sosei Heptares, said: “We are delighted with the multiple successes we have delivered in 2019 as we execute our strategy of achieving sustainable profitability through drug discovery, early development and partnering.
“The new collaborations that we signed in the latter part of the year with Genentech and Takeda illustrate this strategy in action and complement the important strategic partnerships we already have in place with AstraZeneca, Pfizer and others.
“During the year, we also signed an innovative deal with Medicxi, which agreed to provide up to €40 million to create and support two spin-out companies based on our orexin agonist discoveries.
“These companies have made an excellent start resulting in the release of funds to advance into the next stages. Over the course of 2019 we continued to extend the capabilities of our GPCR-focused drug discovery platform through the integration of cutting-edge technologies and expertise.
“We believe that these enhanced capabilities will improve both our ability to generate novel molecules and to create the further strategic partnering opportunities that are central to our strategy to deliver shareholder value.”