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Here’s Why Deepmatter (DMTR) Shares Fell Despite €206K Contract Win

Simon Mugo trader
Updated 20 May 2022

Trade Deepmatter Shares Your capital is at risk

Key points:

  • The Deepmatter share price fell 7.83% today despite winning a €206k contract.
  • The company’s shares are down 71.77% in 2022 amid a broad industry selloff.
  • DMTR’s technology has potential but has not made many sales recently.

The Deepmatter Group PLC (LON: DMTR) share price fell 8% despite the digital chemistry group announcing that it had won a €206,000 contract from Springer Nature, a global research publisher.

The company revealed that the contract would last for three years, which could be why its share fell instead of rising. Investors must have split the income between the three years and figured out that it will not amount to much income every year.

Also read: Five Best Pharmaceutical Stocks To Watch In 2022.

Deepmatter is a big data and analytics company that has built a proprietary platform known as DigitalGlassware® that helps boost reproducibility in Chemistry. The company’s services have significant potential, but unfortunately, the uptake of its cloud-based services has not been as fast as was expected.

The last significant announcement from Deepmatter was in January when it raised £2.75 million via a placing and subscription and an open offer to all shareholders. The company said that it would use the funds raised to continue executing its strategy.

Deepmatter was in discussions with a Korean company about providing its DigitalGlassware® software to the firm in a deal that could have generated mid-six-figure income for Deepamatter. However, it is unclear what happened since Deepmatter has never announced a contract win from the discussions.

The company’s DigitalGlassware® software can help other firms speed up the drug discovery process by making it easy for companies to access and share information on chemical processes via its cloud-based infrastructure.

Mark Warne, DeepMatter’s CEO, commented: “Springer Nature is committed to supporting researchers in sharing research data, and we are delighted to be working with them to provide products and services making sharing research data faster, easier and more impactful.”

Dr Cécile Mack, Springer Nature’s Managing Director of Digital Products & Marketing, commented: “In supporting the research community, we have found DeepMatter's products and services an excellent resource.  We are pleased to extend our long-term relationship and look forward to exploring the ways in which their technology and expertise can help us unlock further quality data.”

I wouldn’t buy Deepmatter shares given the company’s weak sales, but the situation could be different for long-term investors with a multi-year investing timeframe.

*This is not investment advice. Always do your due diligence before making investment decisions.

Deepmatter share price.

Deepmatter share price 20-05-2022
Source: Tradingview

Deepmatter shares have fallen by 71.77% in 2022 amid a broader selloff in biotech shares.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading