6 million test and more to come…6 May 2020 09:17
Testing will be around until a vaccine is found, which is still 10 to 14 months away at a minimum. Based on tests being sold between £8 and £10, along with Genedrive’s other commercial products and the second test priced at £20, we believe the company is severely undervalued and is now being noticed by large investors. Should see more large buys today and leading up until mid May. At this moment, we believe the current marketcap should be around £150m and £180m. We should see a rerate above 300p very soon.
Obtaining CE Mark and FDA for their Covid 19 test:
Remember, Genedrive have already got CE marked and FDA approved products, and Cytiva are a billion-dollar company with experience who have obtained CE marked and FDA approval products in the past. We are confident Genedrive will obtain the same for their tests.
Genedrive will obtain CE marking (to sell in Europe, if no one knows this) this month and begin sales this month in Europe. While Genedrive are selling their CE marked tests within the European markets, they will be waiting for FDA approval through emergency use authorisation (which has a quicker acceptance time) and therefore will then be able to sell their tests in US markets.
Regarding the funding:
The main covid 19 test players such as Avacta and Novacyt, also obtained funding, look at where they are now, and look at the impact (none) the funding had on their share price.
Genedrive’s closest comparison right now would be Avacta Group, who had funding last month at 18p, which was much lower than their share price at the time. That's just how it goes. Avacta’s share price had no effect on the placing because their future is bright, and funds were required for expansion (just like Genedrive).
It’s a shame that some sold due to panic yesterday, to then buy back at a higher price, but see this as a positive lesson learnt (and at least you’re still in still). Try not to be tricked again in the future by MMs or other investors trying to take your shares at a lower price, especially when these investment opportunities do not often come by. Always invest what you are comfortable with and not silly amounts, and always diversify.
Good luck all and stay safe.
Sign In
Follow the stocks
