Physiomics plc

("Physiomics" or the "Company")

Strategy Update

Physiomics plc (AIM: PYC), a leading mathematical modelling, data science and biostatistics company supporting the development of new therapeutics and personalised medicine solutions, is pleased to announce that the newly appointed Board has commenced an extensive review of the business with a clear focus on operational optimisation, commercial execution, and shareholder value creation.

The Board believes the Company possesses a number of underappreciated strengths, including an established scientific platform, respected industry relationships, and what appears to be a robust and dependable commercial pipeline with significant scope for growth.

As part of the review process, immediate emphasis is being placed on disciplined capital allocation and strict cost control measures throughout the business. In alignment with shareholders, all of the new Directors have agreed to receive a portion of their remuneration in ordinary shares in the Company. Such ordinary shares are expected to be issued once annually by reference to the prevailing mid market share price on the latest practicable date prior to issue. Taking account of the combined cash and share proportions of the new Director's remuneration, the aggregate cash cost of the Company's Board remuneration arrangements and finance function is is expected to remain broadly unchanged.

The Board, since their appointment,  has been encouraged by the positive reception received from employees and consultants across the business. In particular, CEO Peter Sargent has been accommodating, professional and supportive throughout the transition process, and discussions are ongoing regarding the potential extension of his contract with the Company.  Furthermore, Ian Bagnall is moving to an executive role as Finance Director and Company Secretary with immediate effect.

The Board has already identified a number of additional commercial opportunities and strategic targets which it believes can be pursued within existing budgetary frameworks and which may materially enhance the Company's medium-term prospects. The Board are also considering further Board appointments, as appropriate, to enhance both operational capability and the Company's independent governance.

The Board has also been made aware of recent unfounded market speculation concerning alleged substantial exit packages payable to former personnel. The Board confirms unequivocally that the Company has made no payments outside of contractual entitlements to former directors or employees. 

The Board's initial assessment of Physiomics' balance sheet is that there is a sufficient cash runway into 2027. Following its initial assessment, the Board believes there is a substantial opportunity to enhance operations, optimise resources, and improve commercial delivery while maintaining the Company's scientific credibility and client service standards.

The Company intends to maintain regular engagement with shareholders and expects to provide further updates in due course regarding operational progress, commercial developments, and additional team changes designed to strengthen and optimise the business.

The Board is highly enthused by the opportunity ahead and believes Physiomics is well positioned to enter a new phase focused on commercial growth, operational discipline, and long-term value creation for shareholders.

Executive Director Mike Whitlow commented:

"We have always believed that Physiomics possesses significant potential and, following our initial review, we are increasingly encouraged by both the quality of the Company's scientific capabilities and the strength of its commercial pipeline.

"The Board sees a clear opportunity to introduce stronger commercial focus, tighter operational discipline and a more dynamic growth strategy, while maintaining the high scientific standards for which Physiomics is recognised.

"We have been particularly encouraged by the support and professionalism shown by the wider team during the transition period and believe the foundations are in place to build a leaner, more commercially effective business capable of delivering meaningful long-term shareholder value.

"The Board is highly motivated by the opportunity ahead and looks forward to updating the market regularly as progress is made."

ENDS

For more information about Physiomics and its services, please visit www.physiomics.co.uk.

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About Physiomics

Physiomics plc combines expertise across Modelling & Simulation, Biostatistics, Data Science and Bioinformatics, together with deep biology expertise, to help biotech and pharma companies streamline their drug development journeys. Our approach is to help derive insight from all relevant and often disparate data in order to de-risk decision making and optimise research design across discovery, pre-clinical and clinical studies. Through use of cutting- edge computational tools, bespoke models and our proprietary Virtual Tumour technology, the Physiomics team has informed the development of over 140 commercial projects, with over 125 targets and drugs modelled. Clients include Merck KGaA, Astellas, Bicycle Therapeutics, Numab Therapeutics & CRUK.