RE: Novacyt - The bull case7 Aug 2020 11:31
Yep good post, it's hard to warrant a big p/e, or any at all, with the unique opportunity that Covid presents, however, Han**** and the conservatives are all about 'Levelling up' the country.
This means they want to build infrastructure, IT, upgrade the NHS frame work. One place they also have shown a desire for, is a world class diagnostics industry. - Primer Design and AstraZeneca will be at the heart of this, with the latter being the biggest company in the UK by Market Cap.
The Govt have invested a lot with private firms, but also with Universities - That are the best in the world when it comes to science - and they will want Oxford/Cambridge to become the Diagnostics Silicon Valley. - We've all seen the job adverts for the 200 scientists wanted at the mega lab in Cambridge with the PrimerDesign High Throughput Test.
The UK Media and Public (without wanting to get into a political debate) are so downbeat on the UK due to Brexit, but we have some of the world leading Education, Healthcare and Research facilities in the world.
There's no surprise that the UK is leading the charge to fighting Covid, with Antibody, Antigen and Vaccines (without factoring in the Treatment that SNG and University of Southampton are working on).
This Company is here for the future and will have a large cash balance to work with AZN and the Govt to allow it to generate future recurring revenues and become a pillarstone of a UK Diagnostics Leader.