Laurie Turnbull, Chairman of Source BioScience, will be making the following
statement at the 2008 Annual General Meeting today:
'We are delighted with the significant positive changes that have taken place
during the last twelve months. Our focus has been on growing the Group's
operations, the acquisition of new technologies and expansion into new markets.
'It was apparent that in order to consolidate these changes we needed a name
that more appropriately reflects the nature and scope of the Group's current
and planned activities. As a result, we renamed the Company Source BioScience
in March this year.
'The Group's strategy remains unchanged; our aim is to enhance our service
offering across the Healthcare, Pharma Biotech and Life Science Research
divisions. The acquisition of Geneservice, in July last year, was a significant
step in delivering this strategy. This was further underpinned by the
acquisition in March this year of Autogen Bioclear. These two key investments
have enhanced our offering in molecular diagnostics and opened new markets in
the life science research communities, in addition to broadening the Company's
ability to create a 'one-stop shop' offering to pharma biotech customers for
our tissue pathology to genomics expertise.
'The growth opportunities across the Group are strong and we expect the markets
for our services and products to continue to grow. The Board remains focused on
returning the Group to profitability and will continue to equip the business
with the necessary skills, expertise, technology and products to deliver
controlled growth and value to shareholders.
'The Group has a strong balance sheet with £8.0 million of cash at the end of
March and we reported a 75% increase in revenues for Q1 2008, compared with the
same period last year. As well as incorporating revenue from the acquisitions
of Geneservice and Autogen there was also growth in the existing businesses on
a like for like basis. This uplift has also been underpinned by significant
progress in enhancing the cost effectiveness of our operations.
'We believe that there is significant opportunity for growth within the
Healthcare division especially in our Cytology business. Receipt of the first
payment from an NHS customer for our FocalPoint automated cytology screening
offering represents an important milestone and demonstrates the intent of the
NHS to accept and adopt this technology into the cervical cancer screening
'The increase in volumes for our core Pathology business has been especially
pleasing and we will continue to broaden our portfolio of molecular diagnostic
services, offering a range of genetic tests designed to diagnose disease,
predict the risk of disease and predict and monitor the response to therapies.
'Indicative of the expected growth in molecular diagnostics, has been the
uptake of our KRAS mutation testing service. Patients whose cancers demonstrate
KRAS mutations are essentially resistant to certain targeted therapies and
therefore, by identifying patients with KRAS mutations, unnecessary and
expensive treatment regimes can be avoided and alternatives provided. Moreover,
certain drug licensing authorities, including the US Food and Drug
Administration and the European Medicines Agency have stipulated that this KRAS
test should be a prerequisite before a patient may be prescribed certain
'The KRAS test is a good example of a molecular diagnostic test that is
destined to become a 'companion' diagnostic for specific therapies targeted at
certain types of cancer. With our expertise in both genomic analysis and
diagnostic pathology, we are well-placed to establish ourselves as a reference
laboratory for this type of testing for routine healthcare applications but
also as a component of clinical trials of new agents.
Pharma Biotech Services
'Key to the continued growth of this division is the demand from pharmaceutical
companies for our enhanced 'one-stop shop' service offering which includes the
full spectrum of services from tissue pathology to genetic analysis. We
therefore anticipate an increased demand for our genotyping services, which
help in identifying genetic predispositions to certain diseases, as well as
response to treatment.
As highlighted above with respect to our KRAS testing service, our ability to
offer a comprehensive diagnostic portfolio including tissue and genetic
analysis, along with our logistical capabilities, provides significant
opportunities in the clinical trials arena, early phase oncology trials in
Life Science Research
'Source BioScience is the UK's first commercial service provider for the
Illumina next generation gene sequencing and genotyping technology platforms.
This places the Group in a strong position to respond to the expanding market
of next generation sequencing and genotyping services.
'The business is now significantly stronger, both financially and
operationally, than it has ever been, with all divisions performing well at the
start of this year. In the months ahead we look forward to completing the
integration of the Autogen Bioclear acquisition, increasing commercial project
activity on the next generation gene sequencing and genotyping platforms and
supporting the introduction of automated cytology screening technology into the
'The results for the year ended 31 December 2007, and the strong start to the
current financial year, demonstrate that significant progress has been made in
the operations of the Group. Our outstanding reputation for quality and
customer service across our activities; strong market position; an excellent
customer base and a secure financial foundation place Source BioScience in a
strong position to achieve our objectives of profitability and cash generation.
We look forward to updating shareholders further following the release of our
interim results for the six months ended 30 June 2008.'