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Oncology consultancy firm Physiomics (LON: PYC) share price fell on Monday after the company lowered its guidance, blaming Covid related project delays.
The company said its total income for the year ending June 30th 2021, will be between £700,000 and £800,000, and its loss after tax will be in the range of £170,000 to £200,000.
“This is below market expectations and due to both COVID related project delays and to an increased focus on longer-term value-generating activities,” stated Physiomics.
The precautions taken by hospitals to reduce patient exposure to COVID-related risks has meant several trials either being suspended or experiencing slower recruitment, they stated.
However, they said they continue to believe the shift from mainly pre-clinical work to a mix that includes more higher-value clinical projects will lead to enhanced value as COVID-related pressures on healthcare systems moderate throughout this year.
The AIM-listed company said its cash position remains strong, and it is estimated that on June 30th 2021, its net asset position will be £1.1m, the majority of which is cash.
Elsewhere, the company announced that on April 1st, it convened an advisory board meeting to discuss opportunities to grow both its core consulting and non-consulting businesses.
Dr Jim Millen, CEO of Physiomics, commented: “The pharmaceuticals and biotech industry has weathered the COVID storm better than many other sectors and industries, however it is not immune, and it is well known that trial delays have been a knock-on effect. We believe the impact on Physiomics will be temporary and we already see that clinical trials and patient recruitment are showing signs of returning to normality.”
Physiomics share price opened at 5.3p following the update. It is currently trading at 5.75p, down 2.21%.
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