Trading Update

RNS Number : 5041U

Genedrive PLC

13 July 2018

 

For release: 13 July 2018

genedrive plc ("genedrive" or the "Company")

Trading Update

genedrive plc, the near patient molecular diagnostics company, today provides an unaudited trading update for the twelve months ended 30 June 2018.

Diagnostic related revenue (Genedrive®) was £1.9m (2017: £2.6m). The Company closed the period with cash of £3.5m (31 December 2017: £4.6m) reflecting in part the completion of the Services Business disposal in June 2018. The revenue reduction versus the previous year was anticipated, and in line with market expectations, reflecting the successful completion of the US Department of Defence development contract. Diagnostics is now the Company's only reporting segment following the disposal of Services.

genedrive made its first commercial shipments of the Genedrive HCV® ID Kit in February 2018 and following these initial shipments, further commercial sales have followed. The Company is currently progressing registration and import licenses in approximately 30 countries. In conjunction with our distributors, we took the decision to hold back product registrations so we could include new extended product stability claims. These improved performance claims will assist future commercialisation efforts and we envisage the majority of registration dossiers being submitted during the next month. 

The Company was awarded over £2m of grants during the year, including in June 2018, £0.6m as part of a multi-partner grant award for development and implementation of Genedrive® in an NHS setting, an exciting new future market for the Company. This non-dilutive grant funding will be matched against future costs of progressing product development priorities including the proposed reintroduction of an mTB test with automated sample preparation to our target markets.  The vast majority of the £2m will be recognised in the year to June 2019. Progress of the infectious disease and NHS grant programmes will be provided in the annual report and accounts.

David Budd, Chief Executive Officer of genedrive plc, said: "I am pleased with the progress of the Company and the execution of our stated strategy over the last twelve months. We have launched the HCV ID Kit® and in conjunction with our distribution partners engaged with the relevant registration authorities in key countries, and this is expected to have a positive impact on diagnostic revenues in future years.

"We are applying the £2m of additional non-dilutive grant funding to progress our development work for our HCV and mTB products which are core to our strategy. Augmenting this, we announced another potential future revenue stream in the form of Genedrive® tests for an emergency healthcare setting in the NHS, opening a new, very exciting future marketplace to the Company.

"Finally, with the disposal of the Services business in June, we have delivered on our stated strategy and genedrive is now a fully focused and growing diagnostics business exploiting the opportunities of decentralised molecular diagnostics."

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For further details please contact:

genedrive plc

David Budd: CEO                                                                                                                              [phone]

Matthew Fowler: CFO

Peel Hunt LLP

James Steel                                                                                                                                         [phone]

Oliver Jackson

Stanford Capital Partners Limited                                                                                                [phone]

Patrick Claridge

Consilium Strategic Communications

Chris Gardner                                                                                                                                    [phone]

Matthew Neal

Laura Thornton

[e-mail] 

Notes to Editors

About genedrive plc

genedrive plc is a molecular diagnostics company developing and commercialising a low cost, rapid, versatile, simple to use and robust point of need molecular diagnostics platform for the diagnosis of infectious diseases and for use in patient stratification (genotyping), pathogen detection and other indications. The Genedrive® HCV-ID test has received CE-IVD Certification and has been launched in Africa and Asia Pacific. genedrive has distribution agreements with subsidiaries of Sysmex Corporation for the distribution of the Genedrive® platform in the EMEA  and SE Asia (ex-India), and with ARKRAY Healthcare pvt Ltd for the distribution of the Genedrive® HCV ID Kit and Genedrive® platform in India.

Further details can be found at: www.genedriveplc.com and www.genedrive.com

 

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