Proteome Sciences PLC shares plummeted on Thursday, after it cut its revenue outlook for 2023 amid delays to projects.

Proteome is a London-based protein-focused drug development services provider. Shares in the firm were down 17% to 5.00 pence each in London on Thursday morning.

Proteome said it expects its US laboratory to be operational in the coming weeks and is lining up first customer projects for this laboratory. It added that it is engaged in discussions with ‘several pharmaceutical companies and academic groups’ regarding single cell proteomics projects and hope to initiate studies early in 2024.

However, in negative news, Proteome said it now expects to report lower revenue for 2023. It expects the results to be lower than 2022’s £7.8 million.

‘As reported by many other life science technology providers, the company has experienced delays to projects, many of which have been postponed to 2024. The healthcare industry has faced a very challenging market environment this year, especially in the second half of the year,’ Proteome Sciences explained.

‘In addition to other topical macro-economic headwinds, the company has seen that the biopharma clients have been restrictive on [research & development] outsourcing expenditure through contract research organisations.’

Proteome added that reduced revenue combined with its commitment to invest in the US lab, means its now expects to post a net loss for 2023. In 2022, the company posted a profit after tax of £1.3 million.

Looking ahead, Proteome Sciences said: ‘For 2024 the company expects a more positive environment for services evidenced by increased customer activity in recent weeks and based on the expectation that an improved macro-economic environment will drive renewed investment into drug development at more traditional levels and that delayed projects will be commissioned.’

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