Ekf Diagnostics Share Discussion Threads

[wan] 02/9/2022 06:26

Interview re the Lucica® test which is distributed exclusively by EKF in the USA -

Lucica® Glycated Albumin-L Test for diabetes: Comparisons and Clinical Utility With Shane O’Neill
Published: September 1, 2022
Lucy Lawrence & Tiffany Quinn

In this episode we are joined by Shane O’Neill, director of scientific affairs at EKF Diagnostics. Shane provides an introduction to the glycated albumin (GA) test for intermediate-term glycemic control in diabetic patients.

The GA test is now FDA-cleared and available for use in the United States. It was developed by Asahi-Kasei Pharma of Japan (Lucica® brand) and is a standardized and well-evidenced method for determining glycated albumin levels in the serum.

Shane will also describe why glycemic control is important and discuss the value of the test for glycemic monitoring, outlining its clinical utility and how it compares to other markers of glycemic control, such as hemoglobin A1C and fructosamine.

[wan] 01/9/2022 06:21

I note todays RNS re notice of Interim Results and the related live online presentation hosted by Mike Salter (CEO) and Marc Davies (CFO)

Excerpt from an article by Jeff Fischer, President, Longhorn Vaccines and Diagnostics -

MEDCITY INFLUENCERS, DIAGNOSTICS

A Covid-19 reflection: Incorporating what we’ve learned for improved preparedness
Beyond preparedness policies, we need to think forward to policies that rapidly identify the spread of zoonotic disease to prevent or minimize the impact.
By JEFF FISCHER

Aug 31, 2022

Evolving toward better preparedness

The silver lining of the situation was that the diagnostics industry was able to respond and flex to the unexpected as we navigated new territory, albeit with some transition bumps and learnings along the way. One important change the industry has made is in expanding our lab capacities. We moved from a pre-pandemic molecular testing rate of 40 to 50 percent to PCR tests now comprising about 70 to 80 percent of volume. We are getting better at maintaining adequate capacity and scaling to meet increased need.

We’re also finding a good balance between test sensitivity versus speed, or rapid testing. Throughout the pandemic, we’ve had to reassess the best test for each particular point in time. Prior to vaccine availability, there was a need to focus on sensitivity because testing was the only tool available to manage the virus. We needed to know with certainty who had Covid-19 so that we could contain the spread and provide early medical care.

As we moved into a vaccine environment and Covid-19 mortality decreased, testing convenience became more important, and with it, a greater uptake of antigen testing. Antigen testing has limitations: it is a less effective containment tool and doesn’t lend itself to accurate caseload reporting. However, it has a role.

As we began to understand the best utility for each type of test, we also discovered their limitations. Antigen tests may not be the best option during a period of rapid and aggressive spread. PCR tests are more accurate, but can’t provide as quick an answer. We discovered that antibody testing was not as helpful as we initially thought it might be and that knowing whether someone had had Covid-19 previously was not as important as knowing whether they were currently carrying the virus.

Additionally, we entered a period of lab innovation that has streamlined and improved processes in long-lasting ways. Covid-19 assays were developed at record speeds and have potential to inform future assay development for other pathogens. At-home test kits, previously subject to a variety of hurdles, have benefited from eager uptake by consumers. Hospital labs developed tightened result turnaround times with the promise of better testing experiences for patients across a range of conditions for years to come.

Transport media that inactivates dangerous pathogens in patient samples now offers improved protection of workers, safer and faster collection and enables temperature-agnostic transport and storage. Solutions such as these have gained an integral place in everyday workflows in the short period of time since they were introduced.

Full article -

[wan] 25/8/2022 17:19

Cisk...Well we know EKF diversified its customer base so as not to be overly reliant on any one large public sector client (no guarantee that it was Amazon).

Anyway, there is far more to the story than that particular Amazon headline implies, including further potential healthcare acquisitions by Amazon -

Amazon Care and Care Medical are shutting down. Is it really that big a deal?
25th August 2022

A healthcare corporate venture capitalist lauded the “rational decision” that Amazon took in deciding to shut down Amazon Care and Care Medical.

“I love how Amazon keeps trying to crack the employer health market – first with Haven, then with Care and now with One Medical,” said Michael Yang, managing director of OMERS Ventures, the venture arm of the the pension plan for Ontario’s municipal employees, in an email.

The retailer is spending a pretty penny — $3.9 billion — to acquire One Medical though the deal hasn’t closed yet. Yang noted that the San Francisco company has a “far more substantive footprint in the employer market” in comparison with Amazon Care.

In other words, the fact that Amazon is acknowledging failure and moving on, is really not a big deal and doesn’t change the company’s growing ambitions in healthcare. So does the failure even matter?

“Well, healthcare is hard, so we should expect failures but if anything their ambitions are only getting bigger,” Yang said of Amazon. “Whether they kept Care going or shut it down is immaterial. The big deal is One Medical and whatever else they pursue.”

Another healthcare industry player and thought leader agreed.

“[Amazon] previously had a skunk works (Amazon Care and Care Medical) and [it] basically acquired a scaled, clinical operation with the right clinical and regulatory controls in place (One Medical),” said Sachin Jain, CEO of SCAN Health Plan, a Medicare Advantage plan. So, this might just be a fancy way of saying that they’re collapsing that Amazon Care into One Medical,” [Note that the One Medical acquisition is not complete yet.]

In other words, “they are playing to win and realize that building it organically wasn’t going to cut it,” Yang declared, adding that he won’t bet against Amazon despite this setback.

Even after the much-touted Haven floundered, there were similar sentiments: you can’t count Amazon out, you can’t bet against it. But selling healthcare services isn’t like selling books or any other consummable and faster, better, cheaper may not exactly translate to great outcomes.

“I’m not close to the Amazon Care story, but there’s a broader trend in our industry that is replacing specialists with generalist doctors, replacing physicians with nurse practitioners, replacing nurse practitioners with RNs, replacing RNs with community health workers,” Jain pointed out. “And unless you’re kind of founded with really strong clinical DNA, lots of organizations are going to make a lot of mistakes and it’s, you know, it’s not, it’s not clear where that DNA was going to come from, you know, within Amazon.”

Perhaps this is why Amazon isn’t exactly stopping with the acquisition of One Medical. Reportedly, it is also one of the suitors bidding for Signify Health that is a value-based care company with a market cap of $6.6 billion. Based in Dallas, Signify Health is powering in-home health services, the next place rife with opportunity in healthcare. Sitting within Signify Health is also another company it bought called Caravan, which supports accountable care organizations. In fact, Caravan has within its client base more than 200 health systems and 100 Federally Qualified Health Centers with more than 10,000 primary care providers that collectively manage over 500,000 patients, according to a February MedCity News article.
Full article -

Amazon to close US telehealth service as it shifts sector ambitions
Tech group seeking more access to corporate employees in bid to gain foothold in $4tn healthcare market
25th August 2022

Analysts said Amazon Care’s closure, which will come at the end of the year, should not be seen as a retreat on its efforts to gain a foothold in the $4tn US healthcare sector. “This is not a sign of failure by any means,” said Natalie Schibell at Forrester Research. “It’s a strategic move.”

Amazon’s decision comes after its recent agreement to acquire One Medical, a large network of primary care providers, for $3.9bn — its largest deal in the healthcare space.


Amazon’s ambitions in healthcare have been years in the making, and are set to intensify under the leadership of Andy Jassy, who replaced Jeff Bezos as chief executive last year.

Ultimately, Amazon’s M&A activity points to it assembling the building blocks for a large health service offering “value-based care”, said Rebecca Springer, a senior analyst covering healthcare at PitchBook. The term describes a business model where health providers earn income based on patient outcomes — how well the patient is — versus merely providing treatments.

Full article, FT.com -

[cisk] 25/8/2022 14:57

Impact on EKF?

[tongosti] 22/8/2022 14:56

I feel this is wider markets led. However a firm close below 36 (if and when it happens) will invite a completely neutral stance on this.

[tongosti] 16/8/2022 08:46

48 captured intraday chaps. Didn't take that long did it. First milestone out of the way.

[tongosti] 16/8/2022 07:56

Doing what's it meant to be - 48 to be captured v soon. Once we have that in the bag, 63 is the next stop.

[zxie] 16/8/2022 07:29

INSP shares jump soon

[tongosti] 15/8/2022 08:16

Allowing for a bit of time to price consolidating around 48 area, one should then expect 63 as the next stop after that. On the balance of odds.

[wan] 13/8/2022 10:52

Yes, interesting and encouraging positive price action yesterday.

In my view, there is quite a lot of positive development to report, which the Trading Update indeed implied. I am therefore looking forward to EKF reporting their interim results more fully in September.

Following the related healthcare and diagnostic sectors as I do, I am also very much encouraged regarding EKF's prospects as we enter the next chapter of their growth phase.

[tongosti] 12/8/2022 19:30

Glad to see a few have finally got some colour on their cheeks. All four of them....As you can see chaps there is a time to be long and a time to be short. And another one to get back long again. 48 is next.

[sharw] 12/8/2022 15:24

Looks like a tipsheet.
8 trades before 14 22 and 61 since.

[saucepan] 12/8/2022 14:50

Very encouraging price action.

[tongosti] 09/8/2022 07:55

48 is next immediate milestone if we close firmly above 41.

[faz] 05/8/2022 15:58

James, I think you're right, EKF doesnt have the money as its spending it on internal growth. SO it's a waste of Baines for sure. However it also does not have the money because I'd guess the idea was to sell the shares in RENX etc at a marvellous profit and use that to invest in new Sinai spin offs. The stories given when the three spin offs were made also did not indicate they were cash-hungry punts.

[wan] 05/8/2022 09:17

Hi James,

I don't disagree regarding the share performances, nor the fact it's 'hopefully' still too early to judge those spinout shares. But as I said back in April, for those of us still holding the extended family of EKF stocks, on the one hand we are still better off than we were without the in-specie shares (unless you participated directly), but the overall performance thus far is more than disappointing, to say the least! I also suggested that given the market backdrop, going forwards, one wonders if the spin-off model has any immediate candidates, or indeed any further legs at all.

In my view, Verici and Trellus (trading at near or below cash) are more likely to be acquired than require additional funding, but only time will tell. With regard to Verici, with strong IP and scientifically validated tests, it is worth noting that other related transplant players have IP issues, but plenty of cash and/or the financial firepower on tap.

On the one hand the market is hardly conducive or receptive to further spinouts atm, and perhaps especially so given the dire performance of the previous spinout shares. To my mind, one or more of those spinouts will have to perform and deliver before there is any appetite for any further opportunities.

Personally, I would like to see EKF invest and develop their own IP, or at least the development of proprietary products. In this regard, I repeat in part what I stated back in May as a result of an answer to my question at the AGM -

EKF are not developing proprietary tests/assays per se (or at least not yet), they will however produce both proprietary EKF enzymes as well as third party enzymes that can be produced in bulk scale for mass production of test kits, such as molecular testing, and indeed in other application areas too e.g. buffer formulations (watch this space👀).

So, proprietary, high margin, enzymes might be an example of an aspect that's underappreciated, as clearly, such enzymes could generate significant value, as well as providing potential to increase EKF's attraction to new and existing partners (already happening in my view), and as well as extending EKF's own moat.

In this regard, the partnership with ABEC to deliver customised, large-scale bioprocess equipment to EKF's specific manufacturing requirements is perhaps particularly worthy of note.

Elsewhere, I note development of a unique fermentation platform to 'sustainably' produce high-quality molecules through fermentation. Such 'bespoke and specialised' fermentation platforms will enable a consistent, scalable, and reliable supply of high-quality functional molecules.

In short, EKF are leveraging their extensive manufacturing capabilities and many years of experience to respond to demand-driven opportunities in a very specialised, attractive, high growth areas. With the recent Trading Update providing increased confidence in terms of core business recovery, expansion, and indeed the delivery of the Growth Strategy.

[james188] 04/8/2022 19:31

faz,

I think that you ask some legitimate questions in relation to the various companies that have been spun out of the Mount Sinai/EKF relationship. I should say that I am a reasonably long term investor in EKF.

The share price performance of the three companies that you mention has obviously been disappointing (ditto the EKF share price), but they are all cash hungry early stage entities and I think that it is too early to make a definitive judgement.

I do not think that EKF is large enough to financially further support these investments. They will all inevitably need to raise further funds and so there is a significant risk of dilution as EKF will struggle - and much more so its shareholders - to participate. EKF has much better use for its cash in growing the core business (which is doing well). It is worth noting that EKF has not spun out a further company for some time and rejected a deal that was put forward last year. That may signify a change in strategy under the new management team.

[faz] 04/8/2022 18:41

Dipping in here for the first time in months. Surprised the relationship with MOunt Sinai is seen as an asset (Techinvest). Where is it since Baines relinquished the CEO role to build on the relationship? And where, really is the value - RENX was a camaflaged nothing, verici and trellus have a lot to do to get anywhere near a break-even business. Exploiting the market (gullability) and using EKF as its mouthpiece gets Sinai a decent wedge when these companies get IPO'd, but a 1200% fall in RENX share price - from fluff to reality. ? No not an asset.

[rivaldo] 03/8/2022 10:51

Techinvest have published their new issue, so it should be OK to copy their Buy update on EKF from the July issue:

"EKF Diagnostics

EKF has announced the intention to distribute shares in its investment, Verici Dx, to the company’s shareholders who will receive one investment share for every 50 ordinary shares held in EKF. In order to maintain an orderly market in Verici’s shares following the distribution, the shares will be held in trust for shareholders for a period of a year. During the lock-up period, EKF Shareholders will not be permitted to transfer the legal or beneficial ownership of their Verici investment shares.

Verici is a developer of advanced clinical diagnostics for organ transplant. The company is one of three business that have emerged so far from EKF’s preferred partnership agreement to develop healthcare technologies alongside Mount Sinai Health System. The other businesses are Renalytix, which is currently trading on AIM and Nasdaq, and Trellus Health. Both Trellus and Verici are listed on AIM. EKF reported owning around 5.7% of Verici’s shares at the time of the company’s final results announcement in March. The partnership with Mount Sinai is proving fruitful and represents an asset that investors may be overlooking when valuing shares in EKF.

We feel that the company’s core business alone is somewhat undervalued by the current share price. Stripping out net cash of 4.6p per share, the shares trade on a prospective P/E of 14.1 for the current year, falling to 11.4 for fiscal 2023. Add in the projected value of the business investments in the Mount Sinai partnership and the stock looks excessively neglected. Buy."

[tongosti] 01/8/2022 13:06

Following from my 2855, the trend has finally reversed, in all probability. Time to go the other way folks.

[tongosti] 01/8/2022 12:12

As the wise man said - nothing like price to change sentiment. Our dear ramper has been firing on all cylinders once we turned above the 50dma.

[wan] 01/8/2022 07:11

New research/broker note -

Strong growth in core underpins FY expectations

EKF has reported a strong H1, with revenues of £37.5m and double-digit growth in underlying non-Covid related business. Management reports it is trading in line with expectations for the full year and we make no change to our profit forecasts at this stage. New growth initiatives are proceeding to plan and should lead to accelerated core growth from FY23 onwards. We continue to see substantial upside on successful execution with the shares trading on an FY23 P/E of 13.1x and an EV/EBITDA of just 6.8x, supported by a FCF yield of 6%. We stay at Buy, with an unchanged TP of 62p.
Research Tree -

[wan] 01/8/2022 06:32

An excellent Trading Update today!

And to aptly refer to CEO Mike Salter's comment, EKF is indeed entering a new chapter.

There are many points and subtleties one can repeat or refer to within todays TU, but ultimately EKF are delivering, the Growth Strategy is on track and it is all funded by internally generated cash flow.

Suffice to say, as the title to the threads header states, EKF Diagnostics for income and growth - A healthy, reliable combination!

[wan] 30/7/2022 07:37

To reaffirm my commentary above -

Core diagnostic growth offsets falling COVID-19 sales at Hologic, Thermo Fisher and Qiagen

Rising demand for core diagnostics offset better-than-feared declines in COVID-19 test sales, shedding light on the companies’ post-pandemic futures.

Published July 29, 2022

Hologic, Thermo Fisher Scientific and Qiagen reported quarterly financial results this week, revealing how rising demand for core diagnostics has offset better-than-feared falls in COVID-19 test sales. Here, we look at the key takeaways from each set of results.

Full article -

Readers will note the final paragraphs from Qiagen regarding their energy use in Germany, and from what I can tell electricity is EKF's main source of energy use too. Not to mention that healthcare related products are regarded as being critical and therefore it's a sector that gets prioritisation -

Planning for disruption
After measures like this have been exhausted, EU countries “may need to start curtailing partially or fully specific consumer groups” identified in the “emergency” stage of their national crisis plans.

Prioritisation of sectors is likely to differ between EU countries, but “it is advisable, to include the impact on health, food, safety and environment, security, and defence in their national prioritisation,” the leaked document says.

The demand reduction plan gives guidance to governments on how to determine which sectors to prioritise, with four considerations:

> “Societal criticality”: how important the sector or product is to society, particularly when it comes to health, safety, environment and security.

> “Cross-border supply chains”: to what extent the product is part of cross-border supply chains and would disrupt the smooth provision of essential societal services at the EU level.

>“Substitution and reduction possibilities”: whether fossil gas can be replaced or energy savings measures can be used.

> “Damage to installations”: what damage could be caused to industrial tools in the case of a temporary shut down and the cost of repair. This particularly looks at sectors that need to run continuously, like parts of the medical industry, pharmaceuticals, chemical processes, glass and steel.

One way of prioritising could be to look at the product level, rather than the sector. For instance, not all glass production would be prioritised, but glass for food containers, vials and syringes and renewable infrastructure might be, the document suggests.

Source Euractiv. Full article -