Fusion Antibodies (LSE:FAB) fell 7.2% to 13.0p after a year-end trading statement reported unaudited FY2026 revenue of £2.13m and a rise in gross margin to 50%.
The company said underlying unaudited gross margin, excluding a £250k IP transfer, was 43% in FY2026 versus 22% a year earlier and that cash at 31 March was £1.04m.
Management attributed margin strength to an improvement in underlying project margins together with the £250k IP sale announced on 30 March and noted that project-based revenue remains inherently variable amid a slow market recovery.
Commercial progress included follow-on stable cell line contracts with a US biotechnology client extending the programme by c. $460k, new humanisation and multi-target Integrated Therapeutic Antibody Services projects with global pharmaceutical groups and an additional grant-funded collaboration with Queen’s University Belfast worth up to £545k.
R&D momentum was highlighted by the grant of a US patent for the OptiMAL® platform, continued promising validation work with the National Cancer Institute and use of FMI grant-funded microfluidic equipment to accelerate cell line timelines.
The board said the business benefits from a mix of commercial revenue and non-dilutive grant funding and remains cautiously optimistic for FY2027 while mindful of macro uncertainty.
"We are particularly encouraged by our success in securing projects with global pharmaceutical companies, which validates our strategy to broaden our customer base and improve revenue quality," Adrian Kinkaid, Chief Executive Officer, said.
