Shares of Fusion Antibodies, a U.K. biotechnology company, experienced a significant downturn after the company announced that its first-half revenue for the fiscal year would fall short of market expectations. However, despite this setback, the company remains optimistic about its prospects for future growth.
As of 8:59 AM GMT, shares in Fusion Antibodies had dropped by 26%, or 1.32 pence, reaching a value of 3.80 pence.
According to the company's statement on Thursday, it anticipates reporting revenue of at least £541,000 ($664,673) for the six-month period ending on September 30. This figure represents a decrease from the £1.9 million generated during the same period the previous year. However, the company did not provide specific insight into current market sentiment.
Fusion Antibodies explained that it expects revenue for fiscal year 2024 to be more heavily weighted towards the second half. Additionally, despite the disappointing first-half results, the company has effectively managed costs through strict controls. Furthermore, the board's assessment of the company's cash runway remains positive, as it takes into account the ongoing development of the second half's pipeline.
The company emphasized its commitment to achieving cash neutrality within the designated timeframe. However, it also acknowledged that there are no guarantees and that the board will closely monitor this objective.