The reissue of the RNS this morning was certainly more than welcome. And credit where credit is due, MHC have finally started to do some PR which is what many of us have been asking for.
Glad they have put out an RNS, would've much preferred this on Monday (either previous or upcoming).
To me, it just reads like rushed damage control which could've been handled much better & much sooner but nevertheless, it is more than welcome. I have a long-term view here and am happy to keep my investment despite the recent nonsense :)
https://news.sky.com/story/covid-19-travel-traffic-light-system-scrapped-and-changes-to-coronavirus-tests-for-fully-jabbed-holidaymakers-announced-12410405
Key points so far:
- From 4 October, the current traffic light system of red, amber and green countries will be scrapped and replaced with one red list only.
- Also from that date, travellers will no longer need to take pre-departure tests for travelling into England from abroad.
- Then, from the end of October, fully vaccinated passengers from non-red list countries will be able to replace day-two PCR tests with cheaper lateral flow tests.
- Anyone testing positive will need to isolate and take a free confirmatory PCR test which would be genomically sequenced to help identify new variants.
Looks like Shapps is expected to make the formal announcement later today (or 'tomorrow' for those of us who haven't slept yet):
- Ministers are expected to unveil a major shake-up of the Government's international travel rules tomorrow
- Changes made by Grant Shapps could see green and amber lists merged into one list of low-risk nations
- The double-jabbed will no longer have to take costly PCR tests when they return to England from abroad
- There is also growing speculation that the number of countries on the toughest red list will be reduced
https://www.dailymail.co.uk/news/article-9999485/PCR-tests-axed-amber-countries-turn-green-red-list-halved-new-plans.html
As far as I understand it the Welsh COVID requirements are separate for those in England.
However, Wales announced a review of the PCR requirement back on September 1st so it's quite possible it will be scrapped in Wales soon too.
Hmm, interesting, of all the Boots stores I've been in since being invested in MHC (about 9-10) they have all had them on the shelves (even if out of stock). However, I do live in quite a populated part of the UK and these stores were all in fairly major towns/cities so it's maybe not that surprising.
The latest we've heard about the CMA's review of cowboy PCR providers was from Javid yesterday, he said this:
"I asked the Competition and Markets Authority to review the issue of exploitative behaviour in the private testing market. The review reported last week and I am looking into what further action we can take"
So looks like he still wants to take further action but who knows what that is.
The Lloyds deal is an online-only agreement (MHC is not sold in their physical pharmacies). We're in 500 odd Boots stores though.
Palms I think we may be spiritually connected as I was just writing a post on this interview myself haha.
I just wanted to highlight a few things from my notes back in August when this interview was released which leave me with questions given recent events. It just adds to my belief that the company should have addressed where they stand in light of: A.) The Health Secretary's statement on Sunday B.) The endless rumours across the press C.) Today's announcement and D.) The material drop in share price as a result of the previous.
- According to Penny (in August), PCR testing is “going to be around for a while” Her reasons for this were twofold: A.) At the time Japan was experiencing a peak in case rates and B.) New variants continue to come about
- In terms of border controls “requirement for PCR testing will carry on” - “Global issue, not just down to what UK would /like/ to do”
And in response to the question "What is the focus for MHC in post-pandemic world":
- Strategy has not changed - merely paused as (major) boots PCR contract landed
He mentioned how important PCR was for variant tracking, a key point that has been sorely missing from the debate in the media in recent days.
Looks like I was wrong about the uncertainty being significantly less after that announcement haha.
I agree this delay is a positive signal. It looks like they're kicking the can further down the road so then they'll have the figures (case rates etc.) to justify their extension of the PCR requirement. However, there is still the very real possibility that PCR could be scrapped.
From Sky News "New holiday options as red list 'to be cut significantly' - and expensive PCR tests expected to go"
Expecting Javid to address the commons at any point from midday and Boris to hold a presser later. The afternoon may be rough here again (depending on how much of this news has been priced in).
However, looking on the bright side once this announcement has been made the uncertainty around these tests should drop significantly.
One positive that I am taking from this recent development is we may now be at the point where MHC stops being a COVID play (which has contributed to the fluctuating price action) and starts to attract more long-term investors - as I know many of us are - for what will be it's core business (at home testing).
I'm fairly certain it's only their in-store test that these publications are talking about (not MHC). However, that's kind of besides the point here. This is yet more negative PR and consumers are unlikely to know the difference between the in-store test vs off the shelf. Even customers see this and then avoid Boots stores when getting a PCR then it's not great.
Actually, to be fair I have seen a few things about Boots in particular. They're being hounded now only for the distaste at expensive PCR requirements in general but also as they're refusing to offer refunds in cases where test results are not delivered within the specified time frame.
Interestingly this is being covered by both the traditionally left & right-wing publications which means there's pretty much zero defence for PCR tests in the media at the moment.
Just a couple of mentions of the Boots story in particular:
"Boots is among government-approved Covid test firms flouting consumer law" - DAILYMAIL: https://www.dailymail.co.uk/news/article-9985443/Boots-government-approved-Covid-test-firms-refusing-refunds.html
"Covid travel test firms on UK government list refusing to give refunds" - The Guardian: https://www.theguardian.com/business/2021/sep/12/covid-travel-test-firms-on-uk-government-list-refusing-to-give-refunds
I do hope that when/if PCR is scrapped and a formal announcement comes from the Govt. we don't get a double hammering and go lower than today.
We're holding up fairly well all things considered. Despite the extremely disappointing news (even though it was expected at some point), some were predicting under 2p yesterday)
On a side-note, I see the MHC investor Twitter account has today decided to tweet out the business live article from last Thursday (which I posted here) but still no acknowledgement of what has been a 33% drop in SP at its lowest today and a significant change in expectations for what is currently the company's de-facto core business.
I agree with Bakky, instead of reading the headline I think it's important we hear what Javid actually said:
"But the PCR test that is required upon your return to the UK from certain countries... I want to try and get rid of that as soon as I possibly can. I am not going to make that decision right now, but I have already asked officials that at the moment we can, let's get rid of these kind of intrusions, the costs that generates for families, particularly families just trying to go out and holiday."
"We shouldn't be keeping anything like that in place for a second longer than is absolutely necessary."
So from my perspective that says to me that PCR is not going anywhere.. just yet. I do agree with the consensus here that uncertainty has been a killer for MHC throughout the year and the recent news-cycle isn't going to help unfortunately.
#MXC mentioned on the floor of the House of Commons during the debate on Medical Cannabis Access.
https://twitter.com/MGC_Pharma/status/1436293345425477633
Some nice little promo here. MHC came in #13 on a business live article headlined "20 exciting new firms in Wales to watch"
"Cardiff-based MyHealthChecked plc, is an AIM-quoted UK healthcare company focused on a range of
at-home healthcare and wellness tests.
Previously MHC was a single product company focused on hormone testing and providing insight into unexplained infertility, called Concepta but the company changed its name to MyHealthChecked in December 2020 following the acquisition of The Genome Store.
In January 2021 the company made its second acquisition with Nell Health.
In April MyHealthChecked entered into an agreement with Boots to launch the MyHealthChecked Covid-19 at-home nasal swab kit and PCR laboratory testing service in Boots stores across Great Britain and its website.
The deal saw shares in a the company leap."
https://www.business-live.co.uk/enterprise/20-exciting-new-firms-wales-21509948
(accidentally posted before finishing writing!)
I honestly cannot see the Government scrapping PCR requirements for the foreseeable. Possibly not until some time in 2022.
Here are my reasons:
- The summer period was really the key 'test' to see if the Govt. would hold firm with the PCR requirement as this was the point when media pressure to scrap them was at it's highest. Multiple campaigns from multiple papers to scrap the tests, endless stories of cowboy providers and delayed results etc.
- Javid wouldn't be putting so much effort into refining the PCR suppliers if they had any immediate plans to get rid of them. The CMA wouldn't be wasting their time & money in running an investigation imo
- We're about to enter the autumn/winter period which means the frequency of cases will undoubtedly increase, it will be the real test for the vaccines and we all want to avoid a new vaccine-resistant variant so we need to keep track of the variants
- From the way Penny has been speaking in the recent interview etc. it sounds like MHC and others have been assured by the Govt. that PCR requirement will be here for some time
I could be obviously be wrong and this Government are famous for sudden U-Turns so I guess we can only wait and see.
I honestly cannot see the Government scrapping PCR requirements for the foreseeable. Possibly not until some time in 2022.
Here are my reasons:
- The summer period was really the key 'test' to see if the Govt. would hold firm with the PCR requirement: