| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.38 | 5358 |
| Intrinsic value (DCF) | 0.28 | -40 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 0.00 | -100 |
Physiomics Plc is a UK-based biotechnology firm specializing in quantitative pharmacology and computational biology consulting services for pharmaceutical companies. Operating in the UK, US, and EU, the company leverages its proprietary Virtual Tumour predictive software to provide modeling, simulation, and data analysis services, primarily in oncology research and development. Additionally, Physiomics is developing personalized medicine technologies, positioning itself at the intersection of AI-driven drug development and precision healthcare. With a focus on oncology, the company serves a high-growth segment of the pharmaceutical industry, where computational approaches are increasingly critical for accelerating drug discovery and reducing clinical trial costs. Despite its small market cap, Physiomics plays a niche but strategic role in supporting biopharma innovation through data-driven decision-making tools.
Physiomics presents a high-risk, high-reward opportunity within the computational biology space. The company's specialized oncology-focused predictive modeling technology addresses a growing need in drug development, but its financials reveal significant challenges: consistent net losses (£609k in FY2024), negative operating cash flow (£548k), and minimal revenue (£543k). The lack of debt is positive, and its £191k cash position provides limited runway. The stock’s low beta (0.669) suggests relative insulation from market volatility, but investors must weigh its innovative IP against its unproven commercial scalability. Potential upside lies in partnerships with larger pharma firms or acquisition interest in its proprietary Virtual Tumour platform.
Physiomics competes in the computational drug discovery niche, differentiating itself through oncology-specific predictive modeling (Virtual Tumour). Its asset-light consulting model allows flexibility but limits revenue scalability compared to SaaS-based competitors. The company’s deep expertise in quantitative pharmacology is a strength, but its small size restricts R&D investment capacity versus larger AI-driven drug discovery platforms. While it avoids direct competition with clinical-stage biotechs, it faces pressure from: (1) CROs expanding computational services (e.g., Certara’s PK/PD modeling), (2) oncology-focused AI startups with better funding, and (3) in-house capabilities at large pharma clients. Its UK base provides access to European biopharma but may limit US market penetration. The lack of therapeutic IP means revenue depends entirely on service demand, making it vulnerable to budget cuts in pharma R&D. Success hinges on proving that its simulations meaningfully reduce drug development costs for partners.