- Developed and easy-to-use diagnostic device
- US Department of Defense is a customer
What the company does
Genedrive has developed and is now commercialising a low-cost, rapid, versatile and simple-to-use diagnostic. The device of the same name has a broad range of applications. However, its HCV-ID variant, for detecting hepatitis-c, has received EU regulatory sign-off in the form of CE Certification and has been launched in Africa and the Asia Pacific region. In development is a model for tuberculosis.
So why is the interesting? Well, the system is able to rapidly process the biologic information from plasma, sputum and buccal swabs. It is easy to use, provides unambiguous results, so doesn’t require specialist knowledge or data interpretation. The company reckons the hand-held Genedrive system is ideal for “low throughput de-centralised labs”.
- It won its first order from the US Department of Defense (DoD) and it expects more work from the Americans
- The HCV ID kit is under review by the World Health Organisation for ‘pre-qualified status’
- Registrations of the hepatis device is targeted for 30 countries by the year-end
Financial Position and current trading
The half-year results revealed the company had £4.7mln in cash at the end of March. At that point it was waiting for an R&D tax credit and a payment from DoD.
It told investors country registrations for the HCV kit had been slower than anticipated. This delay will have a short-term impact on revenues, it confirmed. Nevertheless, it still expects to post a year-on-year 25% rise in revenues. “The board remains confident in the Genedrive platform, particularly as we move into commercialisation for both our HCV and bio-threats tests, and continue to be committed to the business strategy of exploiting the attractive near patient molecular diagnostics market,” chief executive David Budd said.
What the broker says
The company’s broker Peel Hunt reckons the stock is worth 60p (current price 21p). It reckons the company will post revenues of £2.5mln this year. “Genedrive is clearly benefiting from the strength of its platform as shown by multiple orders from the DoD and several research grants spread over several years,” analyst Miles Dixon said.