Abcam's revenue to be ahead of expectations
Cambridge-based life science company Abcam said it anticipates revenue will continue to grow in the second half of the year, ahead of expectations.
The AIM-listed company company expects revenue to grow 10% on a constant currency basis and 30% on a reported basis as it is on track to deliver against its initial expectations for the year.
Chief executive Alan Hirzel, said: "We have maintained revenue momentum delivering more than twice market revenue growth in the period … Overall, we continue to make good progress against our strategic and investment objectives and continue to see growth opportunities for Abcam."
Catalogue revenue increased 10.7% in the six months ended 31 December 2016 largely driven by a 26.6% rise in revenue from the company’s RabMAb antibody product. This was ahead of the 2016/17 guidance of 18-22%.
However, non-primary antibody product revenues climbed 15.7%, which was lower than the expected 20-25% rise due to previous large volume orders that were not been repeated.
In China the company expects revenue growth of 29.4%, which is “well ahead of the market growth rate in the territory”.
While, custom products and licensing revenue, which represented 6.7% of total revenue for the period, rose 0.5%, as these revenue lines were affected by changes in historic licensing and supply agreements.
Investments in research and development, organisation, systems, and facilities are according to plan and underlying gross margins also remain in line with expectations.
Broker Numis upgraded its forecasts based on recent FX rates to earnings per share of 23.6p for 2017 and 30.1p for 2018.
Shares in Abcam were up 0.58% to 777p at 1120 GMT.