Member Info for smithy2014

Good find Ella. Great to see another recommendation for DPYD.

The presentation is now on the company website.

YGEN now have the capacity in place to do 20k Covid tests per month. Sounds like DPYD is going to be a big contributor.

I agree Bakky. There’s a lot they can offer in line with this in multiple areas and I can’t help but feel their latest addition to the Board, may be to position themselves better. She does have a strong PHE background after all.

There are some new roles being advertised, including a Quality Control Scientist and a Lab Team Leader. I think the other 4 were there last week.

That's a great find Steve. It's not very clear who's kit they will actually use is it but this seems to be a proof of concept pilot that has been extremely successful. Presumably there would be a tender process for the health boards across Wales and we must be included in that surely. Regardless, this clearly shows the strength of this product for us moving forward and the market opportunity close to home. I find the two following paragraphs from the document particularly interesting:

'An estimated 10% of patients prescribed fluoropyrimidine drugs, which are widely used for the treatment of cancer, can develop severe, sometimes life-threatening side effects.'

'Given the recent success of the pilot phase, which commenced earlier this year in collaboration with Velindre, all health boards across Wales will routinely offer the DPYD test.'

FYI Velindre is a specialist cancer centre in Wales.

Ray, I think they actually said that EX5 have had a relationship with them for 18 years, which is impressive. They paid £250k for EX5, which I feel is a very good deal but also I believe, reflective of the fact, that even long standing relationships still need to be translated into tangible business. Don’t get me wrong, I’m very excited and it was a deliberate name drop but I’m looking forward to an RNS showing something concrete. Exciting month ahead with results due to drop in a couple of weeks or so.

It is isn’t Truro but then if you’ve got long-standing relationships with clients who relate to EX5, you may as well keep that continuity, at least until those relationships are translated into new business with Yourgene.

I remember the purchase of EX5 was a tiny line I found tucked away in the end of year financials and it was only last week they started shouting about it as an acquisition, so reading between the lines I think Lyn wanted to get the jump on potential competitors. He’s a smooth operator isn’t he.

The purchase of EX5 for £250k looks like a shrewd bit of business, with ' blue-chip pharmaceutical industry relationships' helping to springboard the new Genomic Services division launched today. No doubt the first significant deal moving forward in that area will more than pay for the acquisition. Lyn certainly likes to think big and think long term, which is great to see.

7am RNS's certainly add a warm glow on these cold dark mornings :)

Actually year end 2021 revenue prediction was 22.3 (consensus broker forecast), now 25.3M post COVID update this week.

Hi Eato, Chem is correct, it’s two different companies I’m afraid. Having said that, the post from masterblater does highlight the potential demand for return-to-work testing opportunities, which I believe is what he was highlighting.

Very exciting times nowadays, with testing only being one of our strong multi faceted business faces. Lyn and his team are executing a master class in business building, in my opinion and inevitably the share price will start to correct itself at some point.

I’m now starting to consider what the half year revenue figures may look like compared to last year. We hit 7.8M in Sep 2019 against a yearly target of 17M. We had a carry over of 400k in April 2020 and until the readjusted broker estimates after our latest testing update, our year end 2021 revenue estimate was 21.3M, so I’m guessing somewhere in the region of 10-12M for the half year update but who knows. Thoughts?

I’ve got a daily search set up for Yourgene chat across social media outlets and I’ve come across two interesting discussions around airport testing on Trip Advisor.

“Thanks so much everybody for your replies. I have booked in with Yourgene Health for 4pm next Weds. We fly Sat 15.45 and the test is in Hyde it’s £280 for us both & she said results will be in 24hrs from lab receiving them”

“Hi - has anyone used Clear2Go in Manchester? I have an appointment booked on Sunday (fly Wednesday) £140 - they use a lab called Yourgene Health”

Lyn has mentioned airport testing a few times but it’s interesting to me personally, to get some validation that there is indeed a demand and customers who will pay a premium price to go on holiday. No idea how many we may do but it’s all good as far as I’m concerned.

I took this a step further and contacted Clear2Go Clinics via their FB page to check that this is genuine as they only incorporated as a business on 13th September and they have just confirmed that they use Yourgene for the tests and that they cost £140. I

Walbrook have just issued the updated consensus broker figures from Stifel & N+1 for the financial year ending 2021:

Previous (£M)
Revenue £22.3
EBITDA 2.8
PBT 0.2

Revised
Revenue 25.3
EBITDA 4.6
PBT 2.1

This is a very nice starting point but clearly these figures could be substantially more and no doubt will be with everything lined up so nicely.

It was a question that Barry answered in the Q&A Bakky.

A confirmation in the AGM that they will be looking to list on Nasdaq. That will be very good.

I don’t really agree with that Natdan. There’s a big difference them saying they want to build up to 10,000+ tests a month compared to now stating, they will be doing c10,000 tests per month from the start of October. If my memory serves me correctly (Steve67) this alone with add another circa 420k per month / 5M revenue per annum for starters, without even considering the advanced negotiations with public and private organisations for testing. We may get more meat in the bone later in the Q&A but it’s a good start.

That’s a very good pre AGM statement RNS. Notably, in addition to what we already know, there’s a clear note about regulatory approval being in progress for the IONA test in Japan, which is new info.

Also, clearly states the company will be routinely doing 10,000 tests from its Manchester lab from the start of October. Also advanced negotiations with public and private organisations wanting a reliable and quick turnaround testing partner.

In summary, October will be impressive in my opinion with announcements and the half year trading update. Exciting times indeed.

The directors have always had a lot of skin in the game with Yourgene and I’m very interested to see what comes out the wash over the coming days in terms of director buys. Also, TR1 notifications will be very interesting. Now, what to do with that remaining war chest???

I was having a more detailed read of the financials this morning and found, which I think is interesting.

On 3 July 2020 the Company completed the acquisition of Ex5 Genomics Ltd, a small UK-based research services company for an initial cash consideration of £275,000, with a further potential cash earn-out potential of up to £275,000. It is anticipated that this acquisition will be accounted for as the purchase of property, plant and equipment and an intangible asset in the form of customer relationships, as the Company does not deem it meets the criteria for IFRS3 Business Combinations.

Lyn did say in his presentation yesterday that the newer areas of business focus that currently fall under the Molecular Genetics umbrella, will ultimately become key business areas in their own right, as with NIPT and Reproductive Health. It’s a small business but it has significant experience and connections and I see it as a shrewd investment.

1. Cash in the bank £2.7m - well funded basically
2. NIPT growth held back because of new Illumina based format - bottleneck of business waiting for launch
3. Maintaining and developing relationships with Illumina and Thermo - very important for many reasons
4. Looking for long term opportunities in China and continue to evaluate potential partners - focus is on USA but China is also absolutely massive
5. Several public sector key customers routinely using DPYD - good repeat business that will grow
6. Additional hires for Germany and France, which are the two countries with reimbursement plans
7. Staff incentive scheme to align interests of staff with shareholders - more shares ultimately, yes but it’s the right long term plan

Morning JAdam, I emailed Paul who is the MD at Walbrook and his feedback is below my email......

Are you able to confirm that Yourgene and Caxton issued a joint advert promoting their Workplace Covid Test in the Financial Times (Money Section) on Saturday 4th July?

From Walbrook:

Yes, it was an advert by Caxton which used the Yourgene logo.