NetScientific Interim Results for the six months ended 30 June 2018

London, UK - 28 September 2018 -- NetScientific plc (AIM: NSCI), the transatlantic healthcare IP commercialisation Group, today announces its interim results for the six months ended 30 June 2018.

Financial highlights

· Loss after tax of £4.6m (H1 2017: loss £5.2m) reflecting development stage of portfolio

· Fundraise in April 2018 of £5m (gross) to:

• Continue the development of its actively managed portfolio companies;
• Progress towards the completion of external series A fundraisings and, ultimately, potential exit opportunities;
• Explore potential transformational acquisition opportunities for the Company with a view to gaining critical mass in the IP commercialisation sector

· Available cash resources at 30 June 2018 of £7.1m (at 31 December 2017: £6.9m)

Operational Highlights

• Vortex Biosciences
• Presented compelling new data at the American Association for Cancer Research (AACR) Annual Meeting which advocate for Vortex’s non-invasive technology in the characterisation of circulating tumour cells (CTCs) for epidermal growth factor receptor (EGFR) and Programmed death-ligand 1 (PD-L1) biomarkers in non-small cell lung cancer (NSCLC)
• Publication in Nature Scientific Reports provided validation of Vortex’s technology in capturing CTCs and assessing levels of PD-L1 expression
• Announced collaboration with BioView Ltd to identify clinical biomarkers on CTCs and create integrated workflows to allow the collection of intact CTCs from blood samples
• Robert Englert, formerly CTO of Vortex since June 2016, appointed to the position of CEO
• Glycotest
• Successfully completed clinical evaluation of its diagnostic panel to screen for hepatocellular carcinoma (HCC), achieving a 93% sensitivity and a 92% specificity in a sample of 75 HCC-positive and 74 non-HCC control patients
• Ongoing intensive business development activities with leading global healthcare providers to advance the development of the HCC Panel and other pipeline assays
• ProAxsis
• Successfully registered CE Mark for ProteaseTag® Active Plasmin Immunoassay, which has potential application in a broad range of disease indications including lung disorders such as Idiopathic Pulmonary Fibrosis (IPF)
• NEATstik® point-of-care test for measuring neutrophil elastase registered first sale to a research laboratory conducting a respiratory clinical trial for a pharmaceutical company
• New data demonstrating NEATstik® ability to identify elevated active neutrophil elastase concentrations presented at the annual American Thoracic Society (ATS) conference
• Additional non-dilutive grant funding from Invest Northern Ireland awarded to support development of ProteaseTag® technology to identify and quantify active protease biomarkers as part of a £150,000 project
• Wanda
• New extended partnership with Health Resource Solutions (HRS) expands the use of Wanda’s Telehealth and Predictive Analytics into orthopaedics, with initial pilot studies demonstrating a decrease in hospital length of stay (LOS)
• Reported a 46% reduction in readmissions in high-risk Congestive Heart Failure patient population in Health Resource Solutions (HRS) pilot-study, with real-time technology allowing for detection of adverse events up to 7 days prior to their occurrence
• On-going business development activities aiming at securing other contract agreements in home health agencies sector and accountable care organisations
• PDS Biotechnology
• Continued development of Versamune®, a synthetic T-cell activating nanoparticle platform, into potential ground-breaking treatments for pre-anal and pre-cervical cancers in HIV-positive patients, stage III cervical cancer, and recurrent head & neck cancer

Post period-end highlights

· Wanda completed significant enhancements of its Patient Management Platform to improve adherence to care plans through personalised reminders and alerts, and launched its new digital health app, Wanda CareLink™, with enhanced real-time capabilities on iOS and Android devices

· ProAxsis strengthened its respiratory portfolio by receiving a CE Mark for its novel ProteaseTag® Active Proteinase-3 Immunoassay and realised its first sale to a large US-based biotechnology company

· ProAxsis also announced that two immunoassays, the ProteaseTag® Active NE Immunoassay, and NEATstik®, were products selected for inclusion in the BRIDGE study, a major upcoming clinical trial funded by the European Respiratory Society (ERS)

Francois R Martelet, CEO of NetScientific, said:

“We are pleased with the progress our portfolio companies have made in the first half of this year, and expect several key value inflection points to occur in the next 12 months. In particular, we are very encouraged by the recognition ProAxsis is gaining through both awards and grants, and by the excellent data achieved by Wanda which validates use of the technology. Vortex is aiming to become the ‘state of the art’ microfluidics and instrumentation technology in the liquid biopsy space. Glycotest continues to produce compelling data and to advance steadily towards full commercialisation, and we expect significant progress for these two companies in the coming months.”

“We conducted a bridge raise of £5m in April 2018 to assist our portfolio companies through key developmental milestones and to help explore potential M&A transactions. Much potential remains to be unlocked in each of the companies and we look forward to seeing substantial value creation in the next 12 months.”

Expected upcoming newsflow

• Glycotest – closure of Series A fundraising
• Vortex – progress discussions with potential investors
• Wanda – expanded partnership deal and new commercial deals
• ProAxsis – initiate new immunoassay tests
• PDS – financing and initiation of further clinical trials

For more information, please contact:

NetScientific

François R. Martelet, M.D., CEO

Ian Postlethwaite, CFO Tel: +44 (0)20 3514 1800

WH Ireland Ltd (NOMAD and broker)

Chris Fielding / Jessica Cave / Chris Viggor Tel: +44 (0)20 7220 1666

Consilium Strategic Communications

Mary-Jane Elliott / Chris Welsh Tel: +44 (0)20 3709 5700

/ Laura Thornton netscientific@consilium-comms.com

About NetScientific Plc

NetScientific is an IP commercialisation group focused on healthcare with an investment strategy focused on sourcing, funding and commercialising technologies that significantly improve the health and well-being of people with chronic diseases.

For more information, please visit the website at www.netscientific.net