Oncimmune Holdings PLC (LON:ONC) has “substantially reduced” the commercial launch risk for its EarlyCDT lung cancer test through a series of supply and licence deals, according to analysts at finnCap.

In a note initiating the biotech firm with a price target of 150p, the broker said the company’s business model reduced execution risk through supply and licence deals in the US and China, distribution agreements in 23 additional markets and “a diversifying pipeline of revenues”.

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As a result, they expected “early evidence of the revenue ramp” in the current year, predicting £400,000 in revenues for the first half of the 2020 financial year and £800,000 for the second half.

finnCap also expects Oncimmune to be cash flow positive by 2024, while its current cash balance, which provides funds until 2022, would provide “the time to deliver further meaningful valuation points”.

In late-afternoon trading on Friday, Oncimmune shares were 1% higher at 51p, a 66% discount to finnCap’s target price.