Big drop from 500p12 May 2021 19:07
Let’s hope this doesn’t happen
n its trading statement dated 1 August 2013, the Company advised shareholders that it was in discussions with Becton Dickinson ("BD") for an expansion of the supply and distribution agreement of its TB test which, if successful, would lead to additional revenues for the year ended 30 June 2013 of GBP1.0m - GBP1.2m being recognised. The Company today advises that the discussions with BD have not been successfully concluded and the supply and distribution agreement originally entered into in August 2012 has been terminated. The previous guidance for the results for the year ended 30 June 2013 of revenues of GBP5.4m (2012: GBP5.6m) and a loss after tax of GBP1.2m (2012: GBP0.2m) remains unchanged. Development of Genedrive(R) has been the key focus of the Personalised Medicine division, with Preclinical Research Services and Novel Therapies broadly in line with the prior year. Net cash as at 6 September 2013 was GBP6.1m. This will be reduced to GBP5.5m post the repayment of $1m to BD under the terms of the original agreement.
Notwithstanding this development, the Company can report significant progress over the past few months in relation to its assay manufacturing, pre-market support for independent TB clinical studies and preparations for the launch of TB, alongside the development of its expanding menu of infectious disease and pharmacogenomic product applications for Genedrive(R) .
The Company has previously announced the appointment of Xcelris as its distribution channel partner in India. The Company will complete its Indian clinical trials and launch its TB test once the latest test modifications (RIF mutations) have been fully validated, with this work ongoing. The Board believes these modifications represent a significant competitive advantage over existing TB products. We anticipate that this will result in the comparative performance being subject to independent peer review in clinically relevant publications. We will update the market accordingly on publication.