genedrive plc (GDR) is a commercial-stage company focused on point-of-care/need molecular diagnostics and biomarkers. Its Genedrive® molecular diagnostic testing platform is at the forefront of this technology, offering a rapid, low-cost, simpleto-use device with high sensitivity and specificity in infectious disease diagnosis. Rapid analysis of patient samples greatly aids clinical and public health decision- making, with field testing particularly important in emerging markets. GDR has signed three commercial deals for its Genedrive HCV ID Kit to date, paving the way to accessing the multi-million-dollar market hepatitis C diagnosis market.

  • Strategy: Now that the Genedrive technology platform has received CE Marking, the new management team has completely re-focused the company onto the commercialisation pathway for diagnosis of infectious diseases, signing two important commercial agreements with Sysmex, a major global player.
  • Interims: Sales fell 9% in 1H’18 to £2.63m (£2.88m); however, Genedriverelated income increased 8% to £1.29m (£1.24m), helped by early completion of the Department of Defense (DoD) contract. EBIT of -£2.4m (-£2.1m) was 12% better than forecast. Cash at the period-end was £4.6m.
  • Genedrive HCV: GDR has signed two distribution deals for its HCV ID Kit with Sysmex for Africa and specific countries in SE Asia, and with ARKRAY for India. Sysmex has undertaken an independent verification field study, incorporated systems and processes, generated its first order, and re-ordered the kit.
  • Risks: The platform technology has been de-risked through the receipt of CE Mark for its first two assays – hepatitis C and tuberculosis. The main risk is commercial, given that it often takes time for new technologies to be adopted. However, partnering with a major global player reduces this risk significantly.
  • Investment summary: Genedrive technology ticks all the boxes described for an ‘ideal’ in vitro diagnostic that satisfies the need for powerful molecular diagnostics outside the hospital setting. The hepatitis C market is a global opportunity, which is very large, even in developing countries. With strong commercial partners being signed for different territories/countries, early evidence of sales traction would highlight, in our opinion, the significant valuation anomaly that exists.