London’s AIM index has traded in a very tight range through Tuesday’s session, reaching the closing bell just over three points adrift at 1199.34
- Oxford Biodynamics +35%
- Biome Technologies +25%
- Ixico -39%
- Tungsten Corp -19%
- Futura Medical -15%
Oxford Biodynamics [LON:OBD] topped the board today, adding 35% by the closing bell, although that was a mere shadow of the 70% gain which had been posted by mid-morning. The company announced the US launch of a COVID severity test, which is used to identify those patients who are at the highest risk if infected with the virus. Existing tests can only identify past or current infection, but this predicts the likely immune response in the future. Certainly an interesting innovation.
Biome Technologies [LON:BIOM] also had a good day, adding 25% after announcing a contract win this morning. Again, the upside in early trade was rather more remarkable but critically this project delivers against a commitment made in the funding circular issued last September. The win is expected to deliver significant additional revenues for the group during the coming year.
Shares in the clinical research group Ixico [LON:IXI] fell sharply mid-afternoon following an announcement that its largest customer has communicated that it will stop phase III trials into a therapy for Huntingdon’s disease following a pre-planned review of data. The revenue impact here is material and will have a meaningful effect on the business for the next three years. The company is seeking clarification from the customer as just how abruptly this revenue will come to an end and has promised further updates.
Accounting software provider Tungsten Corp [LON:TUNG] was also left reeling today, after it announced that an existing customer – which brought in 5% of revenues last year – will not be renewing their accounts payable solutions contract. The transition here will take some time to complete and the business has a strong pipeline of opportunities, which could raise questions as to whether the share price reaction has been overdone.
Finally, a notable mention for Futura Medical [LON:FUM] which by the closing bell ended some 15% lower. The stock surged yesterday off the back of those regulatory approvals from the US, but even after accounting for today’s decidedly limp performance, the valuation is still around three times higher than was seen in the middle of last week.