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 this 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”.
Financial Position and current trading
For the 12 months ended 30 June, revenue rose to £2.4mln (2018: £1.9mln), broadly in line with forecasts. At £5.2mln, cash was ahead of expectations (2018: £5.8mln).
“The commercialisation of our HCV ID kit is progressing more slowly than we would have hoped,” said chief executive David Budd.
“However, we continue to progress WHO pre-qualified status and the registration of the product in our target countries and so reasonably expect an upturn in demand in the future.
In October, Genedrive received approval from the NHS Health Research Authority to start testing its Antibiotic Induced Hearing (AIHL) test in hospital trials.
The AIHL test identifies a condition that occurs in one in 500 people and can result in profound deafness if a baby with the genotype is given the antibiotic gentamicin.
Every year 90,000 babies in the UK are treated for bacterial infections with gentamicin.
- 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 hepatitis device is now running at 12 countries
- Genedrive’s development of an antibiotic-induced hearing loss test for babies with the NHS is ahead of schedule
- In October, NHS gave approval for a 1,000 patient trial that will start in November 2019
What the broker says
The company’s broker Peel Hunt reckons the stock is worth 42p (current price 17.5p).
"Alongside the company’s the better-than-expected traction with the DoD this really demonstrates the platforms wider utility outside of the HCV & TB markets that are commonly associated with genedrive and is an incremental positive to the story".