Ekf Diagnostics Share Discussion Threads

[wan] 11/7/2020 06:48

Staying with PrimeStore MTM -

10th July 2020

EKF introduces novel molecular transport media for dual COVID-19 and influenza sampling

EKF Diagnostics the global in vitro diagnostics company, announces that it has added a novel viral transport media for the safe sample handling and testing of multiple infectious diseases from a single swab to its product range.
Full release -

So, PrimeStore has become integral to EKF's product range i.e. not a temporary offering.

An area that I have been considering (and worrying about) is the need to differentiate between what is a common cough/cold, flu or COVID-19. And thus with the approaching flu season ultimately resulting in patients presenting with similar symptoms, how will sufferers or doctors know what virus a patient is presenting with and what type of treatment/medication is required?

From the above news release -

As multiple tests can be processed from one sample swab, this makes it ideal for the approaching flu season since samples stored in PrimeStore MTM can be tested for both COVID-19 and influenza from a single sample that has been inactivated and stabilised. This can assist with disease differentiation at reduced costs.

“PrimeStore MTM is a real game changer for the sampling and transport of pathogenic samples from a safety, reliability and cost perspective,” said Julian Baines, CEO, EKF Diagnostics. “It’s clear that we need a strong testing programme ready for flu season and a potential second wave of COVID-19 – as thousands of people are going to start presenting with symptoms that could be flu or coronavirus. We have a sample collection kit that was designed in 2006 specifically for pandemics, it’s FDA cleared and CE IVD marked, and can be used to collect both flu and COVID-19 samples in one kit. The kit immediately neutralises infectious samples and doesn’t require refrigerated transport so it’s safer, cheaper and easier to use than standard collection kits.”
(END)

The answer is testing, a lot of testing!

[wan] 10/7/2020 15:08

Supernumerary...It's just as well other types of tests have been developed, otherwise testing would have been totally overwhelmed! I note we don't know how accurate it is and clinical validation will be at some point in the near future.

An important point is, currently EKF do not market an actual COVID test. One of my main thrusts and the point also made by Victoria Stevens from the Lion Trust (post 171), is that some tests that are in development will never make it to market, or some tests already on the market that prove to be inaccurate will ultimately fail to gain a decent market share(some have already received FDA warnings). Whereas EKF's COVID offering targets safe sample collection and transport and is thus not so dependant upon the success of a particular test.

The lions share of FDA authorised tests are molecular (PCR) tests, most of which require a transport media, such as PrimeStore MTM provided by EKF. As of July, the agency had granted EUAs to 136 molecular tests, 25 antibody tests, and just two antigen test.

The PrimeStore MTM is applicable to a good percentage of the PCR testing market and not overly reliant on a specific PCR test. But in any regard, I don't believe the authorities will want to be overly reliant on any one particular type of test. And the attributes of PrimeStore gives us good exposure to the current COVID-19 testing market, and probably not (unfortunately) just for the current pandemic!

[melody9999] 10/7/2020 14:32

Super - the article alludes to the pressure on the supply chain. I think the market is big enough for everyone - the question is how many have EKF been able to manufacture?

[supernumerary] 10/7/2020 10:55

wan - can you count on testing continuing to use the same processes though? eg

‘An advantage of using LAMP technology is that it uses different reagents to most laboratory-based PCR tests. Implementation of this test for screening would ease the pressure on the PCR reagent supply chain in the NHS. In terms of its wider application, the assay requires little infrastructure and is relatively low cost making it a viable option for widespread testing in LMIC.’

[retirementfund] 10/7/2020 09:32

This is looking very cheap in my view there is a lag between the orders they are picking up and the translation in to profits. I am intrigued to see if we see a trading update next week as I am sure they must have picked up significant new orders in the last month or so and would expect this to continue in the second half.

The way things are going this will be heading for a p/e of maybe 10 or less which is way to cheap given their cash position and investment assets.

I suspect a run to mid 70's plus in the second half

In my humble opinion

[wan] 10/7/2020 07:26

The following frames very well what I have been alluding to, that the huge demand and resulting massive increase in COVID-19 testing would result in much stronger than expected COVID-related revenues. Importantly, more than offsetting temporary disruption elsewhere within diagnostic portfolios -

Q2 previews show coronavirus diagnostics bump for Thermo Fisher, Quidel, GenMark

PUBLISHED
July 9, 2020

Dive Brief:
Demand for COVID-19 tests during the second quarter looks set to boost diagnostics makers' growth figures in upcoming earnings reports, according to preliminary results from a number of companies, including Thermo Fisher, GenMark Diagnostics, Luminex and Quidel.

In statements published in recent days, diagnostic companies have shared early looks at their quarterly results. Thermo Fisher led the way with a better-than-expected 10% jump in revenues.

The preliminary results, which include 86% to 118% revenue increases at smaller companies, suggest the near-insatiable demand for COVID-19 tests is offsetting disruption to other parts of the diagnostic sector.

Dive Insight:
Thermo Fisher, the most diversified of the companies, is exposed to markets negatively affected by the disruption to healthcare providers and other businesses. Even so, Thermo Fisher reported growth of 10% as a result of $1.4 billion of revenue from PCR-based tests and other products and services involved in the response to COVID-19. That pre-announcement followed earlier projections that revenue growth would be flat or negative during the quarter.

"While details are limited, we view the much stronger than expected COVID-related revenues as a positive read across to other companies under coverage with significant exposure, primarily [Danaher], [Hologic], [Qiagen], and [PerkinElmer]," UBS analysts wrote following Thermo Fisher's preliminary results.

Smaller companies with portfolios more focused on the COVID-19 opportunity reported still bigger increases in sales. Quidel expects its second quarter revenues to come in just above $200 million, an increase of around 86% over the comparable period of 2019.

Full story -

[wan] 08/7/2020 16:05

The following also stood out -
3.38 Health research and development – The government has committed £313 million to support international efforts to develop vaccines, therapeutics, and diagnostics, including £250 million towards the Coalition for Epidemic Preparedness Innovations (making the UK the largest contributor in the G20), £40 million on therapeutics, and £23 million on diagnostics.63

Epidemic preparedness is something that I think is well suited to global strategic stocks of PrimeStore MTM

[wan] 08/7/2020 15:54

I also note the following -
2.71 World-class laboratories – The government will provide a £300 million investment in 2020-21 to boost equipment and infrastructure across universities and institutes across the UK.

[wan] 08/7/2020 15:44

I note in the Chancellors Plan for jobs presented to Parliament today (Page 24), a large allocation towards testing (and tracing etc)-

£10 billion for the government’s Test, Trace, Contain and Enable programme to support
the unlocking of the economy

[wan] 08/7/2020 11:09

Edit to above post - date added

[wan] 08/7/2020 11:08

With the increased testing demand in mind, I note Source Bioscience have significantly scaled up testing capacity -

20 May 2020
Source BioScience UK Ltd, an international provider of integrated laboratory services and products based in Nottingham, has been selected as a laboratory service provider of COVID-19 testing for the NHS.

Source BioScience are working to support the Government and the NHS as part of the national testing drive to reach 200,000 tests a day.

The Government has an agreement in place with Source BioScience allowing them to support the NHS by providing a PCR based COVID-19 testing service for patients and key workers.

The companies dedicated team, on site equipment and ISO 15189:2012 accredited laboratories allows the NHS to return up to 5,000 samples to Source BioScience for testing per day.

Russell Wheatcroft, Chief Operating Officer, said: “Scaling up testing has been an exceptional challenge and staff are working 24/7 to deliver an expanding number of tests. Since the beginning of May we have doubled our capacity to around 1,000 tests a day and in the coming weeks we hope to be able to process up to 5,000 tests a day. What we have achieved in five weeks would normally take between six months to a year.”

[wan] 08/7/2020 10:38

Very interesting update regarding testing and PrimeStore MTM, with the pooling of samples to enhance throughput capacity to address an even bigger demand than that faced during the height of the epidemic!

PrimeStore MTM appears to have additional attributes (excerpts follow) -

New SARS-CoV-2 Study: Pooling samples collected in PrimeStore MTM is ideal for testing large populations such as employees and students with a significant reduction in infrastructure and cost. Pooling samples requires small amounts of each sample to be combined into a new tube, PrimeStore MTM allows the process to occur on the bench top.


Abstract
Accommodating large increases in sample workloads has presented one of the biggest challenges to clinical laboratories during the COVID-19 pandemic. Despite the implementation of new automated detection systems, and previous efficiencies such as barcoding, electronic data transfer and extensive robotics, throughput capacities have struggled to meet the demand. Sample pooling has been suggested as an additional strategy to further address this need. The greatest concern with this approach in a clinical setting is the potential for reduced sensitivity, particularly the risk of false negative results when weak positive samples are pooled.

When weak positive samples were pooled with four or eight negative samples (Table 2), the positive samples were still all detected in five-sample pools, whether they were in VTM or MTM transport media. When combined in nine-sample pools, detection was more adversely affected for samples in VTM than those in MTM.

Discussion
As the pandemic evolves, despite case counts, hospitalization rates and fatalities decreasing in some areas, laboratories continue to face new challenges. Workloads have increased with, for example, requirements to perform repeated surveillance screening of asymptomatic health care workers and testing of patients undergoing elective procedures where there is a risk of aerosol production. These policies have pushed test numbers beyond those encountered even at the height of the pandemic wave. Suggestions to help manage the load have included pooling of samples to enhance throughput capacity.

When the data was analyzed, despite some minor shifts in Ct values, no loss of detection was observed in any of the five-pool experiments, for samples that had been collected in either VTM or MTM. However, when the same weak positive samples were pooled with 8 negative samples rather than 4, to create pools of 9, detection failures were observed. In three of the 9-sample VTM pools and one of the 9-sample MTM pools, this larger pool size resulted in a complete loss of detection.
Whether the less frequent occurrence in MTM samples compared to VTM samples is significant is difficult to say based on this limited data.

Full document -

[melody9999] 05/7/2020 09:32

flirt - thanks - innocent error on my part. post 164 amended

[firtashia] 04/7/2020 08:49

Melody9999 post 164. Point 1 - orders from Longhorn are quoted in $ as opposed to £. Point 2- completely agree, I think with what’s happening in the US with COVID it’s the wrong time for impatient traders to be selling out. Might add to my holdings this week; if interims are due in September there could be a TS in the next month or so.

[wan] 02/7/2020 11:19

Anyone interested in the future of healthcare, then it might also be worth considering digital healthcare and related technologies becoming the new normal and a critical part of the healthcare solution.

I haven't got access to the following, but it highlights the increasing investor interest in digital health and related technologies -

SUBSCRIPTION REQUIRED
FINANCE
UPDATED 14 HOURS AGO

Pandemic spurs flood of venture capital funding to healthcare startups

Venture capital funds have a renewed interest in startups focused on digital health and related technologies during the pandemic. Insiders predict this could be an unusually active summer for healthcare VC funding.


In this regard, and perhaps somewhat under the radar, it might be worth taking a closer look at EKF and their preferred partnership agreement with Mount Sinai -

In connection with the Agreement, the Company has signed a non-binding term sheet with Mount Sinai, which will allow the Company to explore the opportunity to support the licensing of technology originating from Mount Sinai to establish a novel digital health platform for earlier intervention in and better management of patients with Inflammatory Bowel Disease (“IBD”).


From an Investor presentation -
Agreement provides EKF with advanced access to innovative commercial
opportunities arising from Mount Sinai Health System owned technologies managed
by MSIP in the field of digital diagnostics

[bradders1234] 02/7/2020 09:37

Interesting Buywell - What does this have to do with EKF - Are the providing materials?

[buywell3] 02/7/2020 07:52

This looks just what the doctor ordered




In 30 minutes, it can determine if someone has CoVID-19. The samples don’t need to go to a laboratory and the same device can test six people at once at a cost of around £4 per person.

[wan] 02/7/2020 07:37

Intangible asset strengths -

Liontrust explains how its top small-cap fund is thriving
by Lee Wild from interactive investor | 1st July 2020

Lee Wild: One of the big themes of the pandemic, in investment terms certainly, is the coronavirus testing stocks, a lot of them are very small cap, but in the right place at the right time and doing incredibly well. Is this an area that you’ve been tempted to buy into?

Victoria Stevens: We do happen to hold one company which is held in the Liontrust UK Micro Cap Fund, which is called EKF Diagnostics (LSE:EKF). And EKF Diagnostics, among other things, is a manufacturer of a core reagent which is used in a device which collects blood samples, which is manufactured by one of the company’s American partners, Longhorn it’s called.

And this blood sample collection device deactivates the viruses and bacteria which are present in blood samples, which clearly reduces the risk from re-infection of others from transporting and processing those blood samples. And with many countries starting to really ramp up coronavirus testing in earnest, that company has been seeing many orders flow in for that core reagent.

But what I would say though is that that stock, as you rightly point out, is the exception rather than the rule for our funds. And the reason for that is because we focus on profitable small cap companies, as I’ve already said. Many of the listed companies that are involved in trying to develop tests or treatments for coronavirus are investing very heavily and as a result, many of them are heavily loss-making as well, which simply takes them out of our investment universe.

Full story -

[wan] 01/7/2020 07:46

Food for thought;
A maiden dividend has been preserved and payable to shareholders 1 December 2020 to shareholders on the register on 6 November 2020. If you can buy EKF for around 40p (after discounting the Renalytix holding per share) that equates to a yield of 2.5% from the core business, which is very reasonable in today's low interest rate climate.

If the Renalytix value increases, the greater the underlying yield.

Further food for thought;
Given that the payment of the dividend was originally scheduled for payment much earlier and COVID-19 changed that (understandably), it will be interesting to see what a full dividend might be for the current financial year.

[wan] 01/7/2020 07:36

New website page -

It all starts with the sample -

[wan] 30/6/2020 09:33

In my view, we have had a seller in the market for quite some time, but this is only my interpretation. Anyway, I have been adding on any weakness.

Aside from the prospect that trading could be actually better than expectations due to new contracts (not just Longhorn), I appreciate that core revenues will likely be down (apparently by 10% according Julian Baines at the AGM), which should see some rebound as patient care/physician visits recover.

But don't overlook several other factors;

The majority of EKF's core revenues 'ultimately' come from non-deferrable healthcare that's associated to long-term health conditions.

EKF's Renalytix share holding is currently worth at least 3p per share (more if you factor in the potential FractalDX spinout/valuation).

EKF gave birth to Renalytix, and I don't believe that Renalytix will be their only child!

[murdonix] 30/6/2020 09:12

Trading update in a few weeks which should be positive, this could be the tree shake to build holdings before the results climb. Hold fast.. hopefully a positive close above 45