Fusion Antibodies PLC

Fusion Antibodies PLC (LON: FAB) is a Belfast, Northern Ireland-based company, which has been devoted to the discovery and early development of antibodies. Since 2001, the company is providing a range of antibody engineering services. The group is also helping to bring a positive change in the healthcare sector and has guided hundreds of projects through critical preclinical stages.

Recent News
On 16^th April 2020, the company announced that it is working with Queen's University Belfast (QUB) as part of NICADA (The Northern Ireland Coronavirus Antibody Development Alliance). This has been established to seek new therapeutic and diagnostic approaches to help in the international fight against the coronavirus pandemic.

Trading Update (as on 30^th March 2020)
The company provided an update on current trading for the period end of its financial year ending 31 March 2020. In the trading performance, the group is able to report very limited impact as a result of the COVID-19 pandemic. The business was conducting vital business verticals, as usual, for its customers and stayed fully operational. The UK Government has taken several actions, which provided a safer environment for the Group’s laboratory-based scientists. Fusion is well placed to support its clients in this vital work and has been involved and received additional expressions of interest regarding its services for several projects in this therapeutic area. Notwithstanding the existing COVID-19 pandemic and resulting Government restrictions, trading for the financial year 2020 has stayed in line with those anticipations stated in the Company’s trading update on 29 January 2020. In April, it expects to provide a more detailed trading update post with the financial year-end.

Share Price Performance

Daily Chart as of April 20th, 2020, after the market closed (Source: Thomson Reuters)

On April 20, 2020, FAB shares closed at GBX 105, down by 17.65% against the previous day closing price. Stock's 52 weeks High is GBX 230, and 52 weeks Low is GBX 35.

Conclusion
The company is making progress in business development. The company has focussed on the potential revenue and cash-generating partnershipswhich would benefit its growth and improve its financial performance. The Group is actively exploring all organic and non-organic opportunities that have the potential to create value for the company. The Group expected revenue generation from collaborations could enhance the growth rate of its business. However, there are certain principal risks and uncertainties, which could affect the overall performance of the company. Failure to secure intellectual property rights could affect the revenue of the Group. Failure of drug candidates due to a lack of efficacy or potency could impact the operations and profitability of the company. Without adequate revenue, the company would be unable to fund its business and would unable to grow. Failure in cybersecurity and a critical data breach could affect the operations as well as the reputation of the Group. Global political uncertainty regarding trade policy also poses a risk for the group, including protectionist measures and regulation or legislation in local markets. The Group’s business could have a negative impact from the Coronavirus outbreak.

Based on the risks factors as highlighted above, we recommend investors to keep a “Watch” on the stock at the closing price of GBX 105 (as on 20^th April 2020), with support from few catalysts needs to be evaluated at a later stage.

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