Genedrive makes progress with HCV kit in first half

(Sharecast News) - Near-patient molecular diagnostics company Genedrive issued an unaudited update for the six months ended 31 December on Tuesday, reporting revenue of £1.5m, up from £1.3m year-on-year.The AIM-traded firm said that largely comprised the $0.9m order for Genedrive instruments and assays from the US Department of Defense (DoD), announced in November, and on-going grant income.During the period, the board said "good progress" was made on the two Innovate UK grant-funded projects, and the NHS grant-funded project to develop an assay to test for antibiotic related hearing loss in infants.The company said it was also pleased that it recently received an additional $0.5m order from the US DoD, which would be recorded as revenue in the second half of the year ending 30 June. Genedrive said it was targeting approximately 30 country registrations for the 'Genedrive HCV ID Kit' by the end of the financial year.Despite the delays in registration it previously announced, the company confirmed that that during November and December the Genedrive HCV ID kit was registered in its first four countries, including two that were classed by the firm as priority countries.Its distributor would now progress to the next stage of in-country commercialisation.Sales were expected to begin between one and 12 months following registration, depending on specific country requirements.In addition to the registration processes, the board said Genedrive was also involved in a number of country-specific opportunities with the HCV ID kit, to support near-term sales.The process to obtain WHO pre-qualification (WHOPQ) was also progressing as expected.WHOPQ was a necessary step to support adoption of the Genedrive HCV ID kit by interested United National agencies and WHO Member States in their procurement decisions.The company said it closed the period with cash of £5.8m, up from £3.5m at the end of June, following a successful fundraising which closed in December.During the current quarter, the firm said it expected cash inflows from a research and development tax credit of £1.0m, and to receive payment for the $0.9m DoD order."Genedrive has the first to market point-of-need molecular test for HCV, a strong commercial platform, and a clear strategy to deliver revenue growth," said chief executive officer David Budd."Genedrive has secured four registrations for the Genedrive HCV ID Kit, is gaining recognition in the marketplace and is currently involved in a number of country specific commercial initiatives."The US Department of Defense order has made a significant contribution to revenue in the period and with the recently received additional order we are hopeful that this momentum will continue."Genedrive said it expected to announce results for the six months to 31 December on 28 March.