The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
https://travelweekly.co.uk/news/air/easyjet-collaborates-with-boots-for-covid-tests
https://www.easyjet.com/en/covid-19-travel-hub/covid-19-testing-providers
Q3 is going to be a transformational update … can easily see us at £1m revenue a month just from PCR testing (that’s just an average of 500 kits per day). Break that down ….
Boots.com … consistently 100+ a day
Stores … 500 of these
MHC direct sales
EasyJet app and online messaging
All IMHO … DYOR … good luck all
China fertility trials seem a lifetime ago!
https://www.independent.co.uk/travel/news-and-advice/pcr-test-travel-buy-online-b1858240.html
Nice bit of coverage
Boots online remains at +100 every day
Roll on the massive Q3 announcement
100+ a day on Boots.com consistently
The 500 Stores ... unknown
Own website ... unknown
RNS stated ... covid test sales are expected to have a material impact on the business. Even if we assumed a daily average of 200 across all the channels then over 5 months that’s £2m ...
Personally I’ve topped up at this price and will now mothball them and wait for Q3 ... if you are after quick profit I get the sells, prepared to wait then I think it will come good. IMHO.
Past
Concepta ... focussed on fertility market and a potential challenger to ClearBlue. Re branded MyLotus and a deal made with Boots to sell the product c.2 years ago. Even had a try at launching in China ... clinical trials showed 99% accuracy of the kit to lab tests ... but product never took off. Failure likely due to culture differences in doing business and cost of product.
Present
Company re branded to MHC but still backed principally by Mercia Tech who formed Concepta. Using historical relationship with Boots would have aided the deal re Covid PCR. It’s still a massive strategic win however - 100+ online sales a day is consistent steady revenue. This type of revenue is ground breaking for the business.
Future
PCR testing demand in the balance but logic says it’s here to stay until Technology comes up with a quicker/better solution.
New products for home testing should also be available at Boots IMHO this year
Q3 financial statement - IMHO will show revenue of c£1.5m - £2m (conservative- as also 500 store sales to factor in) from PCR test sales this calendar year which will transform this business if they can get the full product suite into Boots and other key partners.
All IMHO and DYOR
Been here from the very start
Boots now consistently just states 100+ sold in past 24 hours
I think that number in a few weeks when travel, prem footy etc more clear will be +250 ... annually £6m ... add in shops then Boots sales alone could be £40m revenue annually ... assumes a steady daily volume of course. But let’s say £25m ... and that’s just one product and one partner.
Would be interesting to know the next financial update / AGM ... can’t see the SP moving significantly until such time or another RNS re contract win etc, product launch ...
But all looking good IMHO ... just a waiting game
TUI have been very cute here and grabbed some lovely free advertising. In their market sector they simply had to to do this ... they target budget holidays for families. We are not wholly in this space ... people booking Euro city breaks, long haul trips with flights booked direct and Air BnB apartments etc ... then there are sporting events, musical festivals for people with disposable income. Lots of people have been saving money on no commuting to the office etc. There is plenty of opportunity for Boots ticker to go +200 a day within 2 weeks IMHO
Agreed
If you went ...
200 a day online = £4.8m revenue per year
3 a day per shop = £35m revenue per year
Profit margin? 30% ... £12m
As you say the Boots brand has an awful lot of trust and exposure - more likely to buy here than an unknown provider. I only see good things here ... providing MHC can cope with increases in demand.
IMHO DYOR etc
The sales ticker now around 40 a day with air travel still banned. So let’s assume this goes to 100 a day ... that’s £2.4m revenue a year and 100 I think is a conservative view. People will be desperate to get away to the sun/beach after past 16 months. 150 a day ... £3.6m. I’m not ramping here, just thinking about scenarios. Then we have 500 stores ... as a previous poster said if they just sell 1 a day! Considering I’ve been here since hospital tests in China under Eric H ... this is genuinely exciting for the balance sheet. It’s Boots ... surely the first choice of many? GLA DYOR and stay safe