RE: Typical10 Dec 2024 17:50
The Africa and middle east generates only 6% of Novacyt's turnover and there are a lot of competitors in the Mpox PCR market. So the fact that they did not make that much (they did sell tests) revenue from it was to be expected.
Mpox current infection rates aren't that high that they need millions of PCR tests (not yet), and ofcourse the WHO is not going to order the test they do need at a single company. However, they do diversify their orders to guarantee a constant supply of tests and not to be dependent on a single or a few companies, which is why Novacyt also got a piece of the pie.
The cash position stood at 36.5M gbp at the shareholders presentation in september and they burn roughly 800k a month. Adittionaly they closed the IT-IS business in which 700k of restructuringcosts were associated, and they are moving the Canadian production site to the UK which took 1,5M gbp in restructuring costs.
So all in all the cash position today will probably stand around 36.5-0.7-1,5-(0,8x3)= 32 million gbp.
Novacyt's business, as Lyn said, peaks and troughs around pandemics. And given that they now focus the entire business on Primerdesign/pcr testing, any pandemic that will come in the future will act as a catapult on Novacyt's share price.
So @WBAFC the question if you are going to see your 5 pound or so buy price ever again, will depend entirely on to what extent virusses will create mayhem again in the world. H5N1 will be our best shot IMO, but virusses develop and mutate all the time so it may come from an entirely different side, for example SARS Covid mutating to become vaccine resistant which will require mass testing again.
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