Ekf Diagnostics Share Discussion Threads

[earwacks] 21/11/2024 11:07

Wan . I think Julian would be put off the Nasdaq from his experience with RenX. Basically because the value dropped with the fall out from placings and failed bid for the company. It can be ruinously expensive. So although they got booted off the Nasdaq they are still listed in a junior version. In The Renx case their product is exclusively to be sold in the US. Not sure what the global sales mix is with EKF. Harwood (large holders in both)seem to think that if they could get the enzyme business off the ground they will get bought by an American company anyway. If business has recovered sufficiently in diagnostic position as everyone keeps saying, they should show the confidence by reinstating the dividend. In this market and the current state of the world I can’t really understand investors selling up here, because news tends to come out of the blue at any time. I’ve been tempted to sell every time we get back in the 30p range, but have resisted for this very reason , because a successful offer could and should be multiples of this share price with an enzyme product which they have invested heavily in. I think that is the problem, how long this is taking

[wan] 21/11/2024 10:28

I did ask the question as to whether there was any intention to list in the US, and JB said that in his opinion, AIM was the right market for EKF.

Arguably, the current share price performance implies otherwise!

With investor patience running thin (judging by some comments on here and the share price), it will be interesting to see how that opinion pans out, and importantly where/if any catalysts for a rerating might emerge from.

Fwiw, I believe there are several areas where catalysts could potentially emerge from.
Time will tell!

[cumnor] 21/11/2024 09:32

Interesting, Wan. Nice to see EKF being mentioned as a major player as diagnostics companies, many of which are a hundred times it's mrkt cap. London, of course, is the wrong place for EKF to be listed. Let's hope mgmt see the light and move Stateside, esp with this anti business government in power.

[wan] 21/11/2024 09:14

Food for thought whilst we wait for the catalysts and/or a rerating: EKF's shares are currently trading at a price to sales ratio of just over 2, compared to an average multiple of 5 in the sectors that EKF operate.

In the meantime, the following provides unusually good coverage and an informative read, where North America is the dominating region -

In-Vitro Diagnostics Enzymes Market Size to Surpass USD 4.10 Bn by 2033
November 19, 2024

[wan] 16/11/2024 08:53

Yes, valuations of pharma and healthcare firms around the world are down as investors react to the 'possible' effects from a Trump administration.

I keep a general eye on the share prices of a group of global healthcare companies, including US domiciled companies, and most are trading at lower levels based on a month and 6 month view.

I appreciate there is more to it, but the strengthening dollar could be a tailwind for EKF in terms of income in dollars translating to sterling. Plus, if the dollars strengthening trend continues, US import prices will also keep falling, including the cost on a range of EKF's products (devices and consumables).

Somewhere in the middle of all this, hopefully there is, at the vey least, a Goldilocks zone.

In the meantime, might the favourable conditions for US importers (and any 'potential' tariff mitigation/avoidance) mean there could be an uptick in demand?

[earwacks] 15/11/2024 17:06

Re share price fall. Looks like its the Trump effect with the appointment of RFK as health secretary. Has caused a global sell off in pharma and biotech by these two chump vaccine deniers beliefs or plain ignorance more like.

[wan] 15/11/2024 09:43

Related to diabetes: EKF is the market leader for B-HB liquid reagent – increasingly used to identify patients with diabetic ketoacidosis. Of note, perhaps, is EKF's capability and capacity to significantly increase the production of B-HB related products.

I have raised the idea of opportunities beyond testing of Beta-Hydroxybutyrate (BHB), which is already a large and growing market for EKF.

The following recent study, amongst a number of recently published studies prompting interest in investigating potential beneficial applications of BHB beyond testing, offers much food for thought -

Researchers Discover New Metabolic Compound That Regulates Body Weight
November 12, 2024

Scientists at the Baylor College of Medicine, Stanford University School of Medicine, and collaborating institutions published a study, “A β-hydroxybutyrate shunt pathway generates anti-obesity ketone metabolites,” in Cell about the discovery of BHB-Phe, a novel compound produced by the body that regulates appetite and body weight through interactions with neurons in the brain.

Until now, β-Hydroxybutyrate (BHB) has been known as a compound produced by the liver to be used as fuel. However, in recent years, scientists have found that BHB increases in the body after fasting or exercise, prompting interest in investigating potential beneficial applications in obesity and diabetes.

Full story -

But let's not overlook the importance of BHB testing, and not to mention EKF's stored cell lines as having the potential to be a significant growth driver from a combination of commercial sales, and from utilisation internally enabling and augmenting point-of-care products, such as a BHB/Glucose test-strip and reader, which EKF has IP around. This in-house ability and IP will enable the production of a superior and proprietary product that would compliment their existing BHB lab testing business, addressing an 'additional' market of $59m in the US, plus additional opportunities outside the US.

[wan] 15/11/2024 08:38

A few items that caught my attention recently:

Recall that as part of EKF's $14.2m investment programme, they have installed new 65L, 300L, 1,500L, 3,000L and 14,500L units as well as key upstream and downstream process capabilities in the new South Bend facility, complementing the existing capacity provided by their existing BioFlo 10L (x2), 125L and 1,600L units in their established Elkhart facility.

The following caught my attention because Sekisui is an EKF customer, and their recent news release regarding their $20m investment in their UK facility, which appears to make EKF's investment programme look like good value (on the face of the installed capacity).

Of note was the reference to "demand is outstripping manufacturing capacity" -

Nov. 14, 2024 /PRNewswire/ -- SEKISUI Diagnostics' microbial CDMO business announces it has completed construction of its £15.7 million ($20.7 million) cGMP capacity expansion at its UK site for clinical-grade drug substance manufacturing.

BioProduction by SEKISUI is SEKISUI Diagnostics' contract service offering as a fermentation-focused CDMO with expertise in proteins and downstream purification. Their microbial process development and production experience helps smooth technical transfer and process scale-up. The new Grade C microbial fermentation and purification suites will accommodate production scales up to 1,000L.

"This investment supports the vision and mission of SEKISUI Diagnostics and the broader SEKISUI Medical Group by enabling the continued growth of our share of the biologics CDMO market," said Robert Schruender, President & CEO of SEKISUI Diagnostics. "We look forward to working with biopharma companies seeking an experienced partner at a time when demand is outstripping manufacturing capacity."
Full release -

[earwacks] 07/11/2024 13:07

Think we are in for another period of fund managers having to withdraw as clients pull out. Schroders had a big drop a few days back and Hargreaves are also feeling the pinch. 3.7% rise in the dow yesterday, pulling in investors from uk and elsewhere. Also NI rise is taking its toll although cant imagine would effect EKF so much.

[p1nkfish] 06/11/2024 16:36

Thank you.

[wan] 06/11/2024 12:41

P1nk...Around 50%
To get a gauge see the AR 2023 page 11, but there are other references/data elsewhere within the Report -

[p1nkfish] 06/11/2024 12:07

Wan, what per centage of ekf earnings are in $?
Thanks.

[wan] 05/11/2024 15:21

Just to add to what I mentioned above in post 152:

Revvity (formerly part of PerkinElmer) which focuses on life sciences and diagnostics and generates over half its sales outside the United States, reported yesterday "Strong Diagnostics performance and return to growth in Life Science Reagents"

[p1nkfish] 05/11/2024 14:03

RENX confirmation today is indicating EKF is largely sorted now and ready to move forward reliably, just mho, as Baines called into RENX.

"LONDON and NEW YORK, 5 November 2024 - Renalytix plc (LSE: RENX) (OTCQB: RNLXY), an artificial intelligence-enabled in vitro diagnostics company, focused on optimizing clinical management of kidney disease to drive improved patient outcomes and advance value-based care, announces the appointment of Julian Baines MBE as Executive Chairman after shareholders approved the resolution passed at the Company's General Meeting on 31 October 2024. Julian replaces Christopher Mills who will move to a Non-Executive Director role.

 

Julian has significant experience in the life science industry and was the CEO of EKF Diagnostics Holdings Plc ("EKF") and BBI Holdings plc. Julian rejoined the executive team at EKF as Executive Chairman in February 2023.


Julian is also currently Non-Executive Chairman of Verici Dx plc. Before joining EKF, he undertook a management buyout at BBI in 2000, a flotation on AIM in 2004 and was responsible for selling the business to Alere Inc. (now part of Abbott Laboratories) in 2008 for c. £85 million. Julian was previously Non-Executive Chairman of Renalytix from March 2018 to June 2020."

[wan] 04/11/2024 08:55

Staying with Hematology and the supply chain; Managing directors authorised to represent EKF, including EKF's Chief Operating Officer, are speaking at the following meeting -

Yin and Yang of the Supply Chain
perspectives of supplier and client

Friday, November 8, 2024 | 10:00 a.m. - 4:30 p.m. | DECHEMA-Haus, Frankfurt

Supply chains have been disrupted for some time now. Whether it's Corona, container ships stuck in the Suez Canal or raw material shortages - it's no longer a given that (intermediate) products arrive at the right place at the right time.

How do companies deal with these challenges? How do suppliers and buyers come together under these conditions, and what new paths are companies taking to make their supply chains robust? This is the topic of the 2024 autumn meeting of the Managers' Network, where practitioners from pharmaceuticals, medical technology and diagnostics will report.

agenda
10:00 am - Welcome and introduction

10:45 am - Impulse lectures from practice

Moderation / discussion: Susanne Simon / Anna-Katharina Heide

EKF - We ensure the national blood supply: From the outside in: Process outsourcing and its limits
Olga Suckau, COO/ Managing Director EKF Diagnostics

EKF - We ensure the national blood supply! In-house production: regain control!
Dirk Schulz, Managing Director EKF Diagnostics

Balancing act: BIOTYPE as CDMO – Between unclear forecasts, delivery security and demanding product specifications
Manja Böhme, CCO Biotype

Of challenges and opportunities: Insights from a medium-sized buyer into the supplier landscape
Kerstin Korn, COO Biotype

Outsourcing in pharmaceutical development: Opportunities and risks of global and local partnerships”
Tanja Velmans, Director Portfolio & Strategy Management Analytical Development Novartis

12:20 pm - Discussion

[wan] 04/11/2024 08:49

I assume that some of the pre-budget indiscriminate selling has depressed EKF's share price. I am hopeful that this effect, pre-budget and general selling, will not be repeated as we close in on the end of 2024 and head into 2025.

As we move through the remainder of 2024, in general there are early signs of diminished destocking and stabilised consumable demand in bioprocessing, which is encouraging. Hence there is hope for that to translate into a continued improvement in 2025.

With headwinds subsiding, hopefully aiding the increased utilisation of EKF's additional Life Science capacity, it's worth recalling EKF's Outlook statement (including the reference to Hematology) -

Outlook
Life Sciences has seen good growth in fermentation revenues and β-HB sales have continue to perform well. Within Point of Care, Hematology has delivered a robust performance and we expect to see this improve in H2 based on new shipments to Egypt confirmed and a number of additional wins relating to blood bank centres going live since the period-end. We should see improvements with Diabetes in the second half but as highlighted previously, it is unlikely that these products will reach the revenue levels seen in 2023. It is the nature of a business with a wide variety of products to see mixed performances across this portfolio.

The Board remains confident in the outlook for the business overall and with orders already in house for the second half we are very confident that the Point of Care performance in Europe, Middle East and Africa will improve significantly. All of the actions described above are expected to yield further improvements in gross margins, earnings growth and cash generation, and as a result of our efficiency drive we now have a leaner business, with a cost base correctly aligned to a more focussed higher-margin product mix.

The Company expects the improvement in performance to continue in H2 2024 and remains confident that full year results will be in-line with market expectations.

[p1nkfish] 08/10/2024 15:08

Some transferred at 31p at reasonable volume for EKF. One trade reported after hours yesterday.

[earwacks] 03/10/2024 11:46

Veterinary is often overlooked by some of these companies which is strange because approval is usually easier and the market is potentially the same because people will spend any amount on pets. Avg’s Adaptix mobile portable x-ray is very popular with vets in America already having only launched recently. Can also be used in
Engineering which opens up another market. I think they will sell it on as they need to gear up rapidly. Same goes for Magnetica’s scanner. They bought out both companies who unfortunately for them ran out of cash. They bought 90 percent of Adaptix for less than their original 10 per cent stake. Rough estimates suggest the two companies are worth more on their own than the current market cap for their entire engineering enterprises. Classic example of how mispriced the some of uk market is

[wan] 03/10/2024 10:07

Earwacks...Yes, there is always some patience required (often more than some PI's can endure).

What I would add to my above post is that SGLT2 inhibitors have recently seen their introduction into veterinary medicine, where there has already been adverse event reports concerning diabetic ketoacidosis (DKA), and which may also provide another avenue for BHB testing (EKF already addresses the veterinary market).

More importantly, some of the largest global diagnostic players are very interested in ketone monitoring and testing(BHB is perhaps the most important ketone on several fronts). So, I am also wondering whether EKF's test development and IP presents licensing opportunities outside EKF's established and target markets?

The new test will be very complimentary to EKF's established lab-based BHB testing. EKF will apparently have feasibility completed on their new glucose/BHB test by Christmas.

And although it will take longer to gain full authorisation (patience required), I believe that early interest/enquiries is very likely (if not already featuring).

[earwacks] 03/10/2024 08:14

Thanks Wan for that. We seem to have crawled back to the middle of our trading range. Plenty of fund managers seem to have a holding here and expectant of either having a better recognition for the current business and massive upside for enzyme business currently valued at nothing as is the case with many other businesses. Thinking particularly of Avg who have developed and started marketing a portably X-ray unit and a small mri scanner that doesn’t use helium. Both machines are valued at nothing despite significant investment and accelerating order books and interest. Very much a case of the market only valuing the colour of the money today and not what might come in tomorrow. A lot of patience required still with these stock but hopefully will be worth it eventually

[wan] 03/10/2024 07:13

I repeat an excerpt from my post 142 to make an important point:

One of the four pillars of growth, that was previously off the radar, and has significant potential, is EKF owned cell lines that are stored within South Bend in liquid nitrogen, which Julian Baines discusses in the presentation at 24mins 56secs and 47mins in.

It would appear that EKF's cell lines has the potential to be a significant growth driver from a combination of commercial sales, and from utilisation internally (enabling and augmenting point-of-care products), such as a BHB/Glucose test-strip and reader, which EKF has IP around. This in-house ability and IP will enable the production of a superior and proprietary product that would compliment their existing BHB lab testing business, addressing an 'additional' market of $59m in the US, plus additional opportunities outside the US. And perhaps overlooked, and to my mind at least, this aspect should further improve the already strong relationships with the likes of Thermo Fisher, Cardinal Health, and Quidelortho in the 'existing' BHB business and indeed beyond.
(END of excerpt)

The following recent publication regarding BHB and SGLT 1/2 inhibitors is thus important as it is very likely to result in a significant increase in the use and frequency of BHB testing, 'regardless of SGLT inhibitor use' -

Diabetes Technology & Therapeutics
Published Online: 4 September 2024
Beta-Hydroxybutyrate Levels and Risk of Diabetic Ketoacidosis in Adults with Type 1 Diabetes Treated with Sotagliflozin

Introduction: Sodium glucose cotransporter inhibitors may increase beta-hydroxybutyrate (BHB) in insulin-requiring patients. We determined factors associated with BHB changes from baseline (ΔBHB) and diabetic ketoacidosis (DKA) in patients with type 1 diabetes (T1D) receiving sotagliflozin as an insulin adjunct.

Conclusions
Sotagliflozin as an adjunct to insulin led to small but statistically significant increases in BHB over 24 weeks. In fact, in approximately two-thirds of patients, sotagliflozin did not lead to any appreciable increase in BHB. Baseline BHB, changes in BHB, and sotagliflozin use were the main predictors associated with clinically meaningful BHB elevations or DKA events. Common predictors of DKA risk, including age, gender, insulin pump use, and A1C, were also observed in the analyses. These results highlight the importance of patient selection based on BHB testing before starting SGLT inhibitors and education regarding risk, mitigation, identification, and treatment strategies for ketosis and DKA. Our findings further suggest that BHB should be monitored in all patients with T1D, regardless of SGLT inhibitor use, although additional research is needed to determine the optimal frequency of BHB monitoring.

[james188] 01/10/2024 14:01

I see from the recent Relalytix placing announcement that Julian Baines has agreed to become executive chairman of the company. I appreciate that he has been heavily involved with it before, but I would have thought that he had more than enough on his plate with EKF.

The Renalytix RNS also refers to JB having taken on the EKF exec chairman role in 2023 on a short-term basis. That is either very sloppy reporting or concerning (i.e. if he is going to exit EKF).

[wan] 22/9/2024 14:13

Earwacks...Thanks for heads-up re Paul Scott.

EKF Diagnostics..."could be worth having a look"

Episode 38: 39m 57sces in - search Google for - Episode 38 (21/9/2024) - UK Small/Mid Caps with Paul Scott

[earwacks] 22/9/2024 12:09

Sparked a little interest from none other than Mr Scott in his podcast from Malta this weekend, after a little nervous laugh about diagnostic companies. As with any new technologies and in particular life sciences we are in new frontier territory which comes with all associated risks. However the rewards to investors and their users the doctors and patients could be immense. Companies like EKF and Niox (asthma diagnostics)have been through the mill. The aim being to pinpoint treatment areas and help repair with more efficacy with less intrusion and less toxicity side effects. Lung, brain, heart, kidney and eye operations all benefit from better diagnostics.