By Joe Hoppe
Oxford BioDynamics shares fell Tuesday after it said its first-half pretax loss widened on higher costs and it will need to generate more cash for the remainder of the year.
Shares at 0719 GMT were down 3.17 pence, or 19%, at 13.65 pence.
The U.K. biotechnology company posted a pretax loss of 4.75 million pounds ($5.9 million) for the six months ended March 31, widening from a loss of GBP3.25 million a year prior. Operating costs increased to GBP5.1 million from GBP4.4 million, reflecting increased activity across the business and increases in salaries and most external costs.
However, revenue rose to GBP220,000 from GBP85,000, including sales of its EpiSwitch CiRT tests and EpiSwitch Explorer array kits, and contracts.
The company said it will need to generate more revenue or additional funding over the remainder of 2023, as total cash and fixed-term deposits remain relatively low compared to its monthly costs base.
Oxford said a number of factors make it difficult to predict anticipated product and other commercial revenue and associated cash receipts, and concluded there is a material uncertainty, which may cast significant doubt on its ability to continue as a going concern, as it did in its fiscal 2021 and fiscal 2022 results.
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