RE: One to Watch: Novacyt2 Aug 2020 22:13
The UK Government is preparing to award coronavirus testing contracts worth an estimated £5bn to private sector bidders, this vast new budget, which works out at £2.5bn per year will be managed by Public Health England. Innovating and creating new products where gaps are seen in the market is a key factor for me with my investment in Novacyt and the company and their team of scientist are certainly going all out to keep ahead of the pack and showing great innovation and collaboration.
Novacyt are currently working on two large clinical studies to support the potential deployment of their new covid-19 testing product, which is the near patient mobile testing system for specific areas of care. These include:
- Queen Mary University of London – a 2,000 patient clinical trial using the NPTS in London care homes to investigate whether daily COVID-19 testing reduces the infection rate, morbidity and mortality in this high-risk population
- A London Hospital Trust – a clinical trial to support the return to regular surgery scheduling for heart surgeries and imaging appointments
The aim of the new Near-Patient Testing System is to be deployed within A&E Departments, Imaging Suites, Transplant Centres, Respiratory Clinics, Care Homes and GP Surgeries. There is also the real potential for this new near-patient testing system where results are at hand within 60 minutes to be used at Airports, on cruise ships, major infrastructure projects, military deployment, any remote settings, on small islands without the infrastructure to support large testing capacities.
Four of the company directors, including Graham Mullis the Chief Executive Officer purchased shares between May and June, these prices ranged from 305p to 337p. The Novacyt shares traded in April at a peak of 529p, todays price represents a 42% discount on the 52 week high.
Novacyt is without doubt having a transformational year, and profit looks set to be well over £100m. What excites me about the company is its R&D, invocation, quality, proven speed and scale to market, high gross margin, and the way it has established itself as one of the market leaders in COVID-19 PCR testing.
Going forward we know when health and sales in the question, reputation and trust plays a huge part and the company now has a significantly increased customer base around the world to tap into, it also has gained significant collaborations, partnership, and agreements. So many doors have opened for the company during the past few months and with its in house scientist team and developers devising new products to meet gaps in the market it bodes well for the future. For the reasons above, Novacyt is a stock I am happy to hold in the ISA portfolio.
https://www.stockopedia.com/content/one-to-watch-novacyt-647078/
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