ALL GOING WELL9 Jul 2020 15:59
Subject to the rubber stamping of a general meeting tomorrow , Omega has successfully raised £11m at 40p per share , and its issued capital will now be 178.2m shares , which at the current share price of 37p gives a market cap of £66m . Therefore , at the commencement of a hockey stick shaped uplift in sales , both from its 5 COVID 19 initiatives , and , most importantly , its 2 core businesses , Visitect and Food Intolerance , the company will be totally debt free . As a result of the fundraising , whether testing for antigens or antibodies , Omega’s capacity for ELISA based COVID 19 tests will go from 275/- tests per week to 1m tests per week , and its capacity for point of care lateral flow based tests will go from 100/- tests per week to 1m tests per week . Within this latter figure sits the 200/- tests per week Omega expects to be manufacturing for the HMG sponsored Rapid Test Consortium , who have just achieved design freeze of their gold standard test . Subject to imminent approvals , Visitect CD4 sales are expected to grow from a near standing start to 4m - 5m tests pa at US$4 per test and 70% gross margin within 3 - 5 years , whilst , in Food Intolerance , sales to China are expected to grow from a near standing start to US$15.5m by 2023 at 70% gross margin . The 19 minute presentation published at the time of the fundraising bears witness to how concentrated the news flow will be for the rest of this year , which I sum up below - 1) COVID 19 Antibody Tests - Mologic’s ELISA based test is already CE Marked , for sale , and being evaluated by up to 15 countries , of which India has now approved it . Mologic’s primary care focussed lateral flow test is expecting CE Marking in August with first sales in September . The HMG sponsored RTC lateral flow antibody test is awaiting PHE approval , and Omega is expecting to ship 200/- tests per week by end September . 2) COVID 19 Antigen Tests - Mologic’s ELISA based test is expected to finish development in August , achieve CE Marking in September , and first sales in October . Mologic’s lateral flow antigen test is expected to finish development in October , achieve CE Marking in November , and first sales in December . 3) Visitect CD4 - Unitaid / CHAI followed by Global Fund and PEPFAR will deploy Visitect into 4/5 countries in the Summer months . MSF , after lengthy due diligence , will deploy Visitect into various of their field sites in late Summer . Sales of Visitect to the big NGO’s await full WHO approval , which is expected in late Summer . 4) Food Intolerance in China - Self-test approval is expected in late Summer , and Omega is confident of selling 1m tests there by 2023 at US$15.5 per test , which gives a turnover aspiration of US$15.5m for China alone , comfortably more than last year’s total group Food Intolerance revenue of £9.2m . As per the above , the next 5 months promise to provide a tidal wave of news flow , which should massively underpin the share price , provide a steeply r
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