Ekf Diagnostics Share Discussion Threads

[tongosti] 09/8/2021 13:41

Interesting price action around 80 chaps. Let's see if this time is for real. Ready to pounce if and when that happens.

[wan] 09/8/2021 07:59

The following, on its own, is not going to set the share price on fire, but as indicated by Bio-techne, it will likely provide for 'another' sustainable long term source of revenue -

Bio-Techne Corporation (TECH) Q4 2021 Earnings Call Transcript
TECH earnings call for the period ending June 30, 2021.
Aug 5, 2021 at 4:01PM

COVID was an estimated 3% tailwind to our business in Q4 and approximately 4% tailwind for the year, including revenue from sales of the Kantaro IgG antibody serology kit. Encouragingly, there is growing interest in niche markets forming around our COVID serology assay offering, specifically as a tool to identify immunocompromised individuals that may not have the antibody response following vaccination to neutralize the virus.

We expect the COVID research and diagnostics will be around for many years, particularly as new viral strains continue to emerge, making this tailwind a sustainable new layer of our product portfolio going forward.
Excerpt available at Fool.com -

[mirandaj] 08/8/2021 15:59

A good thing to do with regard to more recruitment:

[mirandaj] 06/8/2021 16:14

Interesting:

[sirshagalot] 06/8/2021 16:09

The new norm will be above 80 soon

[wanttowin] 06/8/2021 15:56

warming up.

[tongosti] 29/7/2021 16:18

9 months on and still under 80. Food for thought maybe? Huge opportunity cost concept comes to mind. Been a raging bull market everywhere else.

[wan] 29/7/2021 08:58

Further food for thought -

Recently the US Centers for Disease Control and Prevention, announced that FDA emergency use authorization (EUA) for its 'own' COVID-19 PCR test will be withdrawn at the end of 2021. Some analysts are suggesting that this planned withdrawal could mark a bellwether of Emergency Use Authorisation (EUA) approved COVID-19 tests coming to an end.

If this proves to be the case then this could have a large impact on the entire COVID-19 testing industry in the U.S., which is currently comprised almost entirely of COVID-19 tests with only FDA EUA approval, which is similarly applicable to sample collection devices (currently FDA submissions are experiencing longer-than-typical review timelines and delays in initiation of reviews).

In contrast to fully FDA approved medical tests, EUAs are only given during a declared emergency; outside of this, an EUA cannot be given and cannot be used, with the same applying to viral transport media.

With the pandemic situation at least improving in the US, and economies opening up, the fact that state of emergency cannot last forever is likely to be coming firmly to mind.

If the above scenario comes to pass, or for that matter is already being anticipated, then the fact that PrimeStore MTM is a patented, fully FDA cleared sample collection system, should come to the fore in terms of availability post EUA's, not to mention its other enabling and important attributes.

However, testing will remain paramount in the monitoring of the prevalence of COVID-19, and thus COVID-19 tests will still be needed, similar to how influenza testing is regularly used. Hence my previous comment implying that PrimeStore MTM is not a flash in the pan product, far from it!

And due in part to the pandemic, PrimeStore MTM's has been put firmly onto the map, and its place in terms of diagnostics, sequencing (perhaps overlooked, but very important!) and indeed preparedness, has almost certainly been cemented as a permanent one. I would also add that this applies to many uses outside of Covid-19 detection.

I am therefore expecting sample collection products (not just MTM) to become an integral part of EKF's core business, especially as this also dovetails with diagnostic kit production that brings testing closer to the consumer, which as recently indicated, is likely to become a multi-year, irreversible growth opportunity.

[wan] 28/7/2021 10:39

Food for thought...With Covid now being considered as being with us forever, it's worth keeping mind that as the "influenza season" draws nearer, that PrimeStore MTM can be used to detect and differentiate SARS-CoV-2 from influenza viruses.

So, in this regard, I am expecting PrimeStore MTM to potentially be in routine use forever too!

PrimeStore MTM has proven effective for high throughput and point of care SARS-CoV-2, Influenza, and multiplex testing (single test to diagnose infection caused by more than one virus). And most recently PrimeStore MTM was validated for the rapid and safe simultaneous detection of SARS-CoV-2 (COVID-19) and influenza A/B viruses on Roche’s cobas Liat®, a point-of-care FDA approved diagnostic system.

In short, a sample transport medium that's compatible and safe in differentiating between covid and flu, either separately from the same sample on a range of high-throughput systems, via the same sample for multiplex testing, or simultaneously on point of care platforms.

[wan] 27/7/2021 07:08

Exceprt from SourceBio's Half Year Trading Update today -

As previously reported, the Company anticipates a strong second half bias to revenues, earnings and cash generation, largely driven by the phasing of COVID-19 testing revenues generated through its newest business unit, Infectious Disease Testing. The Group had a solid first half and has completed more than 600,000 PCR-based tests from its laboratory in Nottingham during the period, in addition to tests delivered through mobile units, generating divisional revenues in the half year of approximately GBP28.4 million compared to GBP2.2 million in the first half of 2020. The Group is planning for a significant uplift in demand in the third quarter driven by the anticipated increase in COVID-19 testing as travel restrictions continue to be lifted. The Group has already seen a marked uptick during July with daily testing volumes rising from under 4,000 tests per day in June to approximately 9,000 tests daily at present, well within the Group's existing capacity. Testing demand is expected to rise further and, accordingly, the Group has made preparations to expand its capacity to more than 20,000 tests per day. Should demand exceed these levels, the Group has further arrangements to leverage surplus capacity within a third party owned laboratory.

[wan] 24/7/2021 11:28

As predicted, PCR testing volumes has almost certainly increased and perhaps significantly, and (unfortunately) it appears it could stay at relatively high levels going forwards -

UK lacks testing capacity to bring pingdemic to a swift end, ministers warned
System will not easily be able to meet demand if relaxation of self-isolation rules brought forward, sources say

By
Ben Riley-Smith,
POLITICAL EDITOR;
Bill Gardner
and
Lizzie Roberts
23 July 2021

Even though the daily Covid case count has dipped in recent days, there are concerns in Whitehall that the dropping of almost all major restrictions earlier this week could trigger a new surge.

The limits of testing – both PCR and lateral flow tests – are closely linked to the debate about when self-isolation rules can change. One source said that last week ministers ordered more lateral flow tests amid fears they would "run out" by around mid-August. The availability of PCR tests is also coming under pressure.

Last week, the NHS admitted that turnaround times for testing in the community had "decreased substantially" since May. Official figures show that the percentage of tests processed within 24 hours fell sharply from 93 per cent in May to 64 per cent in the week ending July 14.

A testing source said turnaround times could fall even further if the change to self-isolation rules was brought forward. They warned this could push processing times beyond 72 hours, when samples can go off and produce false negatives.

"We are therefore calling on you to ensure that the necessary testing is in place to enable people who have been double vaccinated for longer than two weeks and pinged by the NHS Covid app, to immediately return to work, following a negative PCR test, rather than having to self-isolate.”

A Department of Health and Social Care spokesman said: "The testing and tracing being delivered across the country is saving lives every single day and stopping the spread of the virus by breaking chains of transmission and helping to control outbreaks wherever they exist.

"NHS Test and Trace has capacity in place to respond to increases in demand and people can have confidence that if they need a test, they can get one. Anyone who has Covid-19 symptoms can book home-testing PCR kits and more booking slots are made available at testing sites each day."
Full story -

And with regard to a particular point raised in the above article that "this could push processing times beyond 72 hours, when samples can go off and produce false negatives."

EKF has an answer to that! Cue the attributes of PrimeStore MTM (even if its just in case any extension of the processing times waste the sample and extend the whole testing process further and exacerbating the situation!). It's also why Primestore MTM is effective in enabling downstream sequencing, despite any such delays.

Note that EKF has already confirmed that supply contracts have be won with Public Health England, Private Labs and Universities in the UK and has a large contract with distributor to supply the Government of Ireland.

[wan] 24/7/2021 11:03

In my view, the broad-based strength this large player experienced in the first half provides a good guide/overview of the sector, with the full year outlook also providing a reassuring feature, and at the very least, complimenting the confidence announced by EKF's management in terms of the full year, and indeed the impact from the delivery of their growth strategy -

Sciences and Diagnostics Businesses
Jul 22, 2021

This story has been updated with information from Danaher's analyst conference call.

NEW YORK – Danaher reported before the opening of the market on Thursday that its second quarter revenues rose 37 percent year over year, thanks largely to steep gains from its life sciences and diagnostics businesses.

For the three months ended July 2, revenues rose to $7.22 billion from $5.30 billion in the second quarter of 2020, beating the average Wall Street analyst estimate for revenues of $6.72 billion.

Revenues for the life sciences business rose 41 percent to $3.73 billion from $2.64 billion, revenues for the diagnostics business also rose 41 percent to $2.34 billion from $1.66 billion, and the company saw a 16 percent increase in the environmental and applied solutions business to $1.15 billion in revenue from $995.0 million in the year-ago quarter.

"Broad-based strength across the portfolio helped us deliver over 30 percent core revenue growth and outstanding earnings per share growth and cash flow generation," Danaher President and CEO Rainer Blair said in a statement. "We continued to make significant growth investments during the quarter, strengthening our organic growth trajectory and enhancing our portfolio with the announcement of our pending acquisition of Aldevron."

Danaher ended the quarter with $7.32 billion in cash and cash equivalents.

For the third quarter, the company said it expects core revenue growth in the mid- to high-teens percent range.

Blair said the company expects to deliver approximately 20 percent core revenue growth for full-year 2021. Danaher also expects to recognize $2 billion in COVID-related vaccine and therapeutic revenues in 2021 and anticipates entering 2022 with approximately $1.5 billion in COVID-related backlog revenue. He also noted the company expects to ship approximately 50 million respiratory tests in 2021.

Full story -

[pugugly] 23/7/2021 16:02

wrong thread

[wan] 23/7/2021 07:41

News coverage for the above report -

Report calls for breakthrough diagnostics to be funded like new medicines
21 JULY 2021

The Future of Diagnostics Delivery in the UK report, which is backed by both the Institute of Biomedical Science (IBMS) and the Association of British HealthTech Industries (ABHI), is based on interviews with leading figures in Government, the NHS and UK pathology community.

The findings highlight the clear discrepancy between the value diagnostics deliver to the health system and the investment it currently receives, and focuses on three key areas of development for strengthening the UK diagnostics sector of the future and improving patient access to diagnostic innovations:

Expanding the size and profile of the NHS pathology service;
Developing the future testing landscape; and
Increasing the uptake of innovative diagnostics across care pathways.

[wan] 23/7/2021 07:38

The pandemic has brought diagnostics into sharper focus. The following report and its recommendations are insightful and provides for a very worthwhile read -

The Future of
Diagnostics
Delivery in the UK
Roche Diagnostics Limited
July 2021

The COVID-19 pandemic has demonstrated beyond any reasonable doubt the essential role that diagnostics play in the health of every citizen in this country. From prevention to disease management, diagnostic testing has always been vital to patient outcomes, with in vitro diagnostics informing 70% of all clinical decisions taken in the NHS. When we consider, however, that for every £100 spent in the NHS, only £1 will be invested in diagnostic testing, there is a clear discrepancy between the value the UK places on diagnostics, and our investment in them.

This country is a global leader in clinical discovery and scientific excellence, and the NHS is world renowned for its workforce, safety and efficiency. Yet, the fact remains that for many major diseases, we fall behind other leading economies in terms of our outcomes. The historic lack of investment in diagnostics is, tragically, a key factor in this disparity, and one with far reaching consequences. When the pandemic hit in early 2020, we simply did not have the same diagnostic tools, assured supplies and infrastructure as other European countries to rapidly test for a novel virus.

Since the start of the COVID-19 pandemic, so much has changed. We have seen unprecedented collaboration between the NHS, Government, the pathology sector and the diagnostics industry in the UK. New partnerships and ways of working have been forged to establish the rapid and effective testing infrastructure necessary to meet the scale and severity of the challenge we face. The focus on diagnostics may have historically come second to treatment, cures or vaccines, but the importance of testing in this global pandemic has proved beyond doubt its role as the cornerstone of every treatment pathway. This must now be the catalyst for a bigger conversation on how we address the wider impact of COVID-19 on health outcomes in the UK.

Conclusion
The essential role diagnostic innovations play in delivering
improved outcomes, driving efficiencies and curbing outbreaks
has long been recognised by the health system. However, they
have never been embraced at the scale or speed needed to
realise their true potential.

2020/21 has changed the approach of the NHS towards diagnostics for good. At a
time when the world around us continues to change faster than ever before, we must
not simply keep pace with this change, but show the world what can be done. As
we look towards the next 12 months, Roche Diagnostics stands ready to continue to
partner with Government, the NHS and the pathology professional bodies to realise the recommendations in this document and help create a diagnostics industry in the UK fit for the future.

[wan] 22/7/2021 17:31

No specific insight yet that I can recall, aside from indicating a target of one investment per year and one floatation per year. And according to the Growth Strategy, EKF continue to be in conversations with MSIP over future initiatives and they will look to update investors at the Interim Statement in September 2021 (page 13) -

[tongosti] 22/7/2021 15:55

Yes they have.

[chrysalis99] 21/7/2021 16:04

Have shareholders been given any insight into future opportunities which may flow from the relationship with Mt Sinai?

[shanklin] 21/7/2021 11:33

Is all the diagnostics revenue classified as non-core or just the Covid-19 testing? As rivaldo points out, the latter seems likely to be ongoing for several years, with EKF hopefully continuing to gain significant revenue from this. As well as being useful revenue and profits, it will increase the scope for earnings enhancing acquisitions.

[masurenguy] 21/7/2021 11:16

LOL - tongosti is obviously someone who waits to buy at the top !

I first invested here at 50p last August so in just under a year the value of my original holding has increased by 49%. Having subsequently added some more, my average cost is now 55.2p and therefore my current gain is circa 35%. Hardly a price that has been in limbo over that period. My "investor euphoria" has so far paid off well in comparison to his "gloom from the sidelines" approach !

[wan] 21/7/2021 11:16

Thanks Welshborderer.

I have a strictly personal view with regard to the share price, suffice to say it potentially sits north of £1, whilst collecting dividends on the way as well as benefiting from the opportunities generated from the partnership with Mount Sinai. It's therefore reassuring to read the albeit limited note above from Singer regarding the potential, hence I am looking forward to the delivery of early phases of the growth plan.

Plus, I note we now have clarity regarding the growth plan being funded from current cash resources.

[welshborderer] 21/7/2021 11:01

Today's Singer headlines to its research note:

EKF recently unveiled a strategy for driving growth in the business over the next few years. It will be led by a refreshed executive management team and board, building on renewed strength in the core business and opportunities in developing wider contract development and manufacturing activities. Accretive bolt-on acquisitions will also be considered, all funded by the current strong net cash position of the group. Overall, the ambition is to deliver sustainable double-digit EBITDA growth into the medium term. This note takes a detailed look at the growth drivers and opportunities now in prospect. In addition to introducing conservative formal FY22 & FY23 estimates for the first time, we also look at a range of potential scenarios, one of which shows how EBITDA could reach £45.9m by FY24. Putting that on a multiple of 13- 15x implies a potential Enterprise Value of £597-688m, against a current EV of £314m. Successful delivery should therefore lead to material value creation.

Does anyone have full access to this report?