Horizon Discovery Group plc Trading Update
News Jan 19, 2015
Horizon Discovery Group plc announces a trading update ahead of its full year results for the twelve months ended 31 December 2014. The Group intends to announce its preliminary full year 2014 results on 14 April 2015.
The Group reports a successful year and expects full year 2014 revenues to be ahead of consensus expectations of £11.0 million by approximately 7%, representing growth in excess of 77% over prior year (year ended 31 December 2013: £6.7 million). In addition, the Group is eligible to receive future R&D milestones of up to £158 million plus future product royalties (year ended 31 December 2013: £120m).
This strong performance has been driven by an increased global demand for Horizon’s fully integrated commercial offering comprising research tools, services and intellectual property including drug targets, drug biomarkers and drug candidates. Horizon worked with 30 of the world’s top 50 Pharmaceutical and Biopharmaceutical companies during the year (year ended 31 December 2013: 21) and 961 organisations in total (year ended 31 December 2013: 353). The Horizon offering enables its customers to translate human genome sequencing data into innovative medicines and companion diagnostic tests that improve clinical outcomes for patients and economic outcomes for drug developers and healthcare payers alike.
Molecular diagnostic reagent products, genome-editing services and combination drug screening services have contributed significantly to the growth in revenue and in customer breadth and depth. Revenue includes consolidated contributions following the successful integration of two strategic acquisitions completed in 2014 that have broadened the Group’s capabilities and established Horizon as the world’s leading translational genomics company. Horizon Discovery Incorporated, was formed following the acquisition of the combination high-throughput screening business and assets (“CombinatoRx”) from Zalicus Incorporated, completed on 2 June 2014, and Sage Labs, Incorporated an in vivo model development company completed on 29 September, 2014.
Financial reporting will include non-recurring exceptional items relating to the IPO and the acquisitions during the year and losses for the Group are expected to be in line with market expectations as investment continues in the long term growth of the business consistent with our previously reported strategy.
Year-end cash is expected to be reported at approximately £17m (year ended 31 December 2013: £4.2m).
Post-period end, on 8 January 2015, the Company announced the acquisition of Haplogen Genomics GmbH, a biotechnology company based in Vienna, Austria. Now renamed Horizon Genomics GmbH, the acquired company’s core haploid technology platform adds a new dimension to the Group’s commercial offering by adding a 10-fold increase in both its cell line product inventory (10,000 vs 1,000 previously) and production capacity (100s per month vs 10s per month previously) as well as a 10-fold reduction in production cost. These products have application in basic genomics research enabling access to the fast-growing academic research market not previously penetrated by the Group as well as broadening its commercial offering to those companies engaged in drug discovery and development. This also builds Horizon’s capability in generating genetic sequence, antibody, aptamer and protein validation reagents for research, process optimisation and diagnostic uses.
Dr. Darrin M. Disley, Chief Executive Officer of Horizon Discovery Group, commented:
“Last year was transformational for Horizon as we expanded from a fast-growing private company with approximately 80 employees located in Cambridge, UK, to a fully integrated global public company with over 200 employees in the UK, United States and now in Vienna, Austria.
“We have enjoyed strong revenue growth in 2014, driven both organically and through the successful acquisitions of CombinatoRx and Sage Labs. Horizon has remained focused on becoming a fully-integrated life science company and, with the integration of recent acquisitions, is now able to provide service, product and R&D solutions to customers engaged in all stages of the personalized medicine paradigm from ‘sequence to treatment’.
“This has also been a year in which Horizon cemented its leadership in the fields of genome editing and personalized medicine through the acquisition of key IP, operational capability and know-how. To support this growth, management has further developed Horizon’s talent pool, and, to this effect, we have augmented our Executive, Scientific Advisory Board as well as added high calibre business leaders to our Board to guide the Company.
“Horizon has successfully delivered on all of its 2014 goals as set out at the time of the IPO, and we are confident and very excited by the prospects for the year ahead.”