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Article below will highlight the current value of Novacyt is too low.
Thermo Fisher Inks $450M Deal to Acquire Mesa Biotech
Mesa Biotech's rapid PCR-based test will help Thermo Fisher Scientific meet the continued demand for COVID-19 testing and advance molecular diagnostics tests at the point of care, the company said.
January 27, 2021 - Thermo Fisher Scientific recently announced that it entered into a $450 million definitive agreement to acquire San Diego-based Mesa Biotech, Inc. and boost the availability of reliable molecular diagnostics tests at point of care.
Mesa Biotech has developed and commercialized PCR-based, rapid point-of-care testing platforms that detect diseases such as COVID-19, influenza A and B, and Strep A, and other respiratory diseases.
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Currently, the Accula System is available for use in patient care settings and provides results within 30 minutes, a Thermo Fisher Scientific spokesperson said.
“Mesa Biotech's innovative platform will enable us to accelerate the availability of reliable and accurate advanced molecular diagnostics at the point of care,” Mark Stevenson, executive vice president and chief operating officer of Thermo Fisher Scientific, said in the announcement.
“The addition of Mesa Biotech's easy-to-use, rapid PCR-based test is highly complementary to our existing offering and will further help us meet the continuing demand for COVID-related testing while we work to rapidly scale and develop point-of-care tests for other infectious diseases in the future,” Stevenson continued.
Mesa Biotech has nearly 500 employees and revenues of approximately $45 million as of 2020.
Current MCAP is way off. I think we are forgetting £133M in the bank. Let's say on the balance sheet £133M Cash + £25M IP and assets. This business has got to be worth more the £100M. Even at £10Million profit for the year we would be looking at the current MCAP. People are forgetting this is a growing company with great products and IP. Diagnostics will be here to stay and Novacyt will be a market leader.
Novacyt are part of the Framework award, they have just not issued a RNS to indicate this. 112 companies involved.
77 Primer Design (Camberley)
Diagnostic Goods and Services
Reference: 008137-2021-lot 1-1
Value: £3,000,000,000 [share]
Awarded to group of suppliers.
Current Vacancies indicating Novacyt are growing and a developing business. Share price will reflect this in the coming months, some patience required.
Senior Territory Account Manager Field-Based (Midlands)
Senior Territory Account Manager Field-Based (London)
Business Development Manager (Pharma and Biotech) UK, remote
Life Sciences & Instrumentation Product Manager Southampton
Product Specialist – Marketing Southampton
Business Development Manager (Private Healthcare) UK, remote
Field Application Specialist Leeds and Swindon
Customer Service Representative Southampton
Strategic Sales Director North, Mid, South UK
Senior Territory Account Manager London/Midlands/Yorkshire/Scotland
Manufacturing Technical Assistant Southampton
Production Technician Southampton
Quality Control Scientist Southampton
Research Associate Southampton
Senior Process Engineer Southampton
Shipping and Transport Coordinator Camberley
Technical Specialist Southampton
Senior/Principal Technical Specialist (Microbiology) Camberley
Senior/Principal Technical Specialist (Immunoassay) Camberley
Warehouse Administrator (6 months Fixed-term contract) Southampton
LFT ok, but confirmation needed by Gold Standard PCR tests. We will still be required going forward. As a company best not to have all your eggs in one basket. We are supplying to hundreds of companies and governments worldwide.
Microsoft makes $20bn bet on speech AI firm Nuance
"Nuance provides the AI layer at the healthcare point of delivery," Microsoft chief executive Satya Nadella said in a statement. "AI is technology's most important priority, and healthcare is its most urgent application."
Looking at last year figures and you half revenue to £138M and have a profit of £93M with Cash, IP, and assets on the balance sheet of £160M you come out with a company valuation of just under £600M, this is just a basic company valuation. So where we are now is half of that figure in terms of MCAP and current share price. What investors are failing to see is that this is a growing company which is making profits (No many of them about). They have great products and will develop other diagnostic products which are not just Covid related. The market will see through the Friday fall and the share price will rise to reflect the fact that this company is growing, developing new products, have great IP, cash in the bank. I have previously stated a company valuation of £1.4Billion on last years figures. The news on Friday was not what we wanted, however if you think Novacyt is growing and will be a major player in diagnostics you should not be selling your shares.
Put last years revenues in to the below web site at £277M, profit £187M and £150M cash/assets, then let's say £300M TO this year, you get £1.4Billion. This I believe is on the low side and not taking into account the IP and the need for diagnostic testing going forward. So the current MCAP of sub £500M is way off on this formula. X3 is more realistic MCAP. This will re-rate.
https://www.valuemybusiness.co.uk/valuation
I agree, Novacyt will be looking at other diagnostic companies which are not Covid related to takeover. They will also be developing other diagnostic products which are not Covid related. Novacyt could be the UK's answer to Abbott
Put the Nova year end figures in for yourself. As a minimum you get £1.4 Billion valuation. So MCAP is currently way off.
http://www.valuemybusiness.co.uk/valuation
Example of job below. This company is growing and there are many jobs being advertised. Diagnostics is here to stay and Novacyt will develop into different Diagnostic areas to grow the business. Government and business will know the importance of the industry to their economies.
Senior Territory Account Manager
West London (W1B), West London
£Competitive
Novacyt
Permanent
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Senior Territory Account Manager
Field Based (covering London)
About Us
We are Novacyt, a rapidly growing diagnostics group specialising in infectious diseases. We have a number of successful brands and serve a large global customer base, from hospitals to large corporates.
How much is a pure infectious disease / Covid testing company worth? Well last week Roche agreed to buy California-based GenMark Diagnostics for $1.8bn (or £1.3bn). Representing a take-out multiple of approx 10x EV/sales.
Using the above metric we are looking at £3.7 Billion. So the current MCAP of below £500 Million is way off. GenMark's forward looking statements are also similar to Nova's?
If you take a look at the figures closely, GenMark turnover is half that of Nova, working on half of our margin and also making a loss. They are worth $1.8B. Nova must be worth $????????????????
https://www.globenewswire.com/news-release/2021/02/25/2182948/0/en/GenMark-Diagnostics-Reports-Fourth-Quarter-and-Full-Year-2020-Results.html
Roche scoops up COVID test maker GenMark for $1.8B
Look at the figures, they look familiar? Something's going on!
https://www.globenewswire.com/news-release/2021/02/25/2182948/0/en/GenMark-Diagnostics-Reports-Fourth-Quarter-and-Full-Year-2020-Results.html