The announcement of the contract win with an unnamed biotech company comes a day before its Interims are to be announced.
Companies: Abzena
Abzena (LON: ABZA) has secured a manufacturing deal with an unnamed US biotech company to provide "process development and manufacturing services to progress a novel antibody-drug conjugate ("ADC") towards clinical trials."
Shares in the Group jumped 4% with news the contract value "exceeds US$5m" and the majority of the services will be provided within the next 12 months.
The unnamed biotech firm has been a long-standing partner of Abzena, with the existing relationship "built around Abzena's chemistry services".
Chief Executive of Abzena John Burt commented:
"Since the expansion of Abzena's service offering into the US with two acquisitions in 2015, we have seen a number of customer relationships expand. They are using more of our services across the Group's biology, chemistry and manufacturing capabilities... This latest deal further consolidates our existing relationship with our customer. "
N+! Singer reiterated its positive stance on the Group in its morning note today:
"The Master Services Agreement with a US biotech, worth in excess of $5m, highlights the integrated nature of Abzena’s offering across chemistry services, cell line development and GMP manufacturing.
We continue to expect strong growth in non-licensing revenue (30% CAGR FY2017-20), propelled in particular by rapid expected growth in manufacturing-related income following the installation of stirred-tank bioreactors (due to become operational in early 2018)."
The stock has experienced a number of sharp spikes and dives over the past three years as a result of deal signings and profit warnings. It currently trades at a price of c. 32p - compare this to its peak of 86p in 2015.
Consensus forecasts the Group to report Revenue growth of 30% to £24m in FY18 and a Net Loss of £12m.
Image: Abzena