Genedrive's revenue rises while it re-focuses company

AIM-listed molecular diagnostics company Genedrive’s revenue grew as it re-focused to concentrate on its Genedrive platform, launched a new test in India and changed its name.

For the year ended 30 June, the company, formerly Epistem, reported 12% growth in turnover to £5.1m, compared to the previous year.

Nevertheless, the improvement was driven exclusively by research grants linked to Genedrive.

The company said there was “strong” growth from product development income - or research grants - of £1.9m, up from £900,000, due to its involvement in the US Department of Defence's handheld biohazard identification programme, which is now due to enter into a second $2.9m phase during the current financial year.

There were no distributor sales to India during the year, in comparison to revenue from India of £200,000 last year while the distributor continues to use the initial stock order.

Service income reduced by about 14% to £3.1m, income from the pr-clinical service fell 13% to £2m and income from the pharmacogenomics service also decreased by 15% to £1.1m.

The operating loss widened by 35% to £5.4m due to increased development and administrative costs as the company refocused the company.

At the end of June, cash reserves stood at £1.1m down from £4.9m last year. In July, the company raised £6.5m through a share placing on AIM, and adding this to its existing cash reserve the company has about £7.1m on hand.

As part of the fundraising, the terms of the company's $8m Global Health Investment Fund convertible bond were amended, with the maturity date extended to 2021 from 2019, to allow for a deferral and rolling up of interest due in July 2019.

Chief executive David Budd said: "The year has seen us take further significant strides towards realising the potential of the Genedrive platform to bring the strength of hospital-based, central laboratory diagnostics close to the point of need and near patient setting.

“We have begun the launch of our MTB/RIF assay in India, our first commercial market, and, whilst this has been challenging, I am confident that we will make progress in securing support for the roll out of our tuberculosis and Hepatitis C tests during the current financial year. We also intend to make progress in the development of partnerships to bring assays to the Genedrive platform which will see effective capital deployment in the extension of the Genedrive range of tests."

The Indian launch of the Genedrive MTB/RIF test started in April and while sales are yet to engage, early interest is in line with expectations and the company said the test is performing in line with its product performance claims.

Development of the next Genedrive test for Hepatitis C “remains on track” with European conformity approval planned for March/April 2017.

Shares in Genedrive were down 4.8% to 59.50p at 1131 BST.