Ekf Diagnostics Share Discussion Threads

[wan] 25/7/2020 14:42

Hastings, no criticism intended, your interview/coverage touched many important areas, you did a great job (and got a thumbs up from me)!

[hastings] 25/7/2020 14:08

Wan you are spot on of course.The Bowel disease reference was mentioned in our conversation, but unfortunately I didn't get the full details down. As is the norm, if I haven't got it all at hand I won't use it. Suffice to say though my feeling was/is that this clearly sounds extremely exciting.

[wan] 25/7/2020 13:44

I have said recently that "EKF gave birth to Renalytix, and I don't believe that Renalytix will be their only child", so we now have confirmation of the likelihood of such opportunity, for which both JB and the Chairman are clearly excited about.

FYI, from my post 174 -

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


I have researched the IBD opportunity, and the very large players interest in this area, but let's leave that for another day and stay with the main thrust that, I believe EKF's spin off opportunities extend 'beyond' IBD!

[crazycoops] 25/7/2020 13:05

Thank you Hastings. I hope you and the MW crew are doing well. I took an initial position in EKF on Thursday and added more on Friday. The more I study this company, the more I am liking it.

[hastings] 25/7/2020 10:28

Pleased it is of interest Wan etal.Very impressed with the CEO and added and added again!

[wan] 25/7/2020 09:51

I note in Hastings post the following quote from JB, “We have of this week commenced manufacturing in Germany and now also have sales in Africa and there are also discussions taking place in India, so a lot is happening”.

By coincidence, earlier this morning I came across EKF promoting PrimeStore MTM in the Arab Hospital Magazine page 20. Nothing new in terms of the content, but perhaps demonstrating EKF is indeed set to gain traction elsewhere-

[epicsurf] 25/7/2020 09:49

Slightly dated and don't know if this has been posted before
June 01, 2020 09:00 AM Eastern Daylight Time

BETHESDA, Md. & AUSTIN, Texas--(BUSINESS WIRE)--Longhorn Vaccines & Diagnostics, an innovative molecular tool, assay and vaccine development company focused on serving unmet critical needs in both developed and developing nations, and Cenetron Diagnostics, a cutting-edge clinical research logistics management company, today announced a collaboration with Southeastern Container (SEC), to expand production of COVID-19 testing kits. SEC is a co-operative funded and managed by a group of independent Coca-Cola bottlers serving the United States and Canada.

Longhorn Vaccines & Diagnostics and Cenetron Diagnostics Team up with Coca-Cola Bottlers to Produce COVID-19 Test Kits

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As part of the collaboration, Cenetron and other medical product manufacturers will begin producing COVID-19 testing kits using Longhorn’s proprietary PrimeStore® Molecular Transport Medium (MTM) and preform Coca-Cola bottles, sourced from SEC, as test tubes. The goal is to manufacture 1-2 million preform test tubes per week to help meet the broader US testing goal of performing 10 million COVID-19 tests per week.

Longhorn’s PrimeStore MTM is the only FDA cleared nucleic transport device that inactivates microbes within the device. By CDC guidelines, inactivated samples can be transferred to point of care devices and laboratory based molecular testing equipment without the need for a biological safety cabinet, reducing the time from collection to results. Samples can be easily and quickly moved from the Coca-Cola preform to microcentrifuge tubes for rapid automation.

“We are very thankful for the top notch team of problem solvers in the Diagnostic Group at HHS, and the scientists at Oak Ridge and Sandia Laboratories for facilitating this solution through Coke Consolidated, SEC Containers and Berry Global,” said Jeff Fischer, President of Longhorn. “Cenetron and our growing network of manufacturing partners, many of which are small, family owned business, have stepped up to provide much needed filling capacity while providing additional jobs to their communities. These first-rate Coca-Cola preforms, with leak proof caps, will ensure that we can continue to produce as many PrimeStore MTM sample collection devices as the country needs.”

Cenetron, which was acquired by Versiti in 2019, has been manufacturing specimen collection kits for over 25 years and was Longhorn’s first contract manufacturer of PrimeStore MTM. The Cenetron team has increased production capacity from 30L to 1600L per week and added additional filling shifts. Versiti has opened up an additional site to further meet demand.

“When the request came for Cenetron to produce millions of PrimeStore MTM tubes, our team had to quickly put all of our resources into setting up and designing systems that allowed us to scale up the project, all while working to keep our employees as safe as possible,” said Brandon Harper, Cenetron’s Chief Operating Officer. “We realize that we must continue to innovate in order to keep our pharma customers, and ultimately patients, safe and moving forward.”

About Longhorn Vaccines and Diagnostics

Longhorn Vaccines & Diagnostics is an innovative molecular tool, assay and vaccine development company focused on serving unmet critical needs in both developed and developing nations. Longhorn’s core product, PrimeStore® Molecular Transport Medium (MTM), is a patented, FDA approved, state-of-the-art ambient temperature molecular diagnostic collection and transport device that can help governments, global health organizations and drug manufacturers improve the diagnosis and treatment of highly infectious diseases such as Influenza, SARS-CoV-2, and Mycobacterium tuberculosis (TB). Unlike standard devices for collecting and transporting TB samples, PrimeStore® MTM is the first molecular transport device that can safely deactivate pathogens and stabilize RNA and DNA, allowing enhanced point of care and ambient temperature transport for laboratory based molecular testing and characterization. Longhorn is based in Bethesda, Maryland with a diagnostic research and development facility in San Antonio, TX.

About Cenetron

Cenetron is a concierge clinical trial logistics solutions management company with more than 25 years of experience and hundreds of completed clinical trials worldwide. In addition to offering industry-leading central laboratory services with an extensive test menu powered by Versiti, Cenetron provides solutions, like customizable specimen collection kits, tailored to fit unique clinical research parameters. With 24-hour turnaround time for custom kits, same day pull-and-ship SampleConcierge, and real-time results available through our GlobeSync Web Portal, Cenetron lends unparalleled speed, efficiency and quality to your clinical trial. Cenetron is based in Austin, Texas.

[wan] 25/7/2020 09:42

Thank you Hastings, a very good write up. And I have to add, it underscores a lot of my thoughts and subsequent postings. So from a personal perspective, it's very reassuring that I have been on the right track, despite the seller (who btw, I think is still there!).

[epicsurf] 25/7/2020 09:35

Thanks Hasting very encouraging

[valustar1] 25/7/2020 09:27

Thank you, very informative

[hastings] 25/7/2020 09:22

Good morning crazycoops, I posted it on the Mike Walters site yesterday (subscriprion)
but here it is for yours and other interest.

I can't answer any questions people may have on the piece, it is what it is, so if there is something (most likely) that I have missed apologies in advance.

I do hope however that there is enough in my pen to prove of interest.


EKF Diagnostics has recently been described by broker N+1 Singer, “as one of their best ideas for 2020”.
Additionally, the same broker recently pointed out in a note that
“despite a lot of noise around potential Covid-19 diagnostics and therapeutics, EKF remains one of very few UK-listed companies actually generating material revenues”.

Little wonder then, that despite a more recent flat lining the shares have since March, increased from the 30p range to a current 46p valuing the business at circa £200m.

Whilst some investors watching from the sidelines may consider that the shares have perhaps now run out of steam, the reality may well be that EKF has much further to go, not merely in the near term, but as a medium-longer term play.

To get a better handle on the business and its prospects both immediate and further ahead I have been fortunate enough to speak with CEO Julian Baines, who sounded a bullish note on prospects for the business.

Although I want to hear about all of the areas EKF covers, the recent and current excitement has been focused on PrimeStore, the novel viral transport media for infectious diseases.
To this end Baines says “we are really very busy at present and I don't see that slowing down at all, particularly with the flu season commencing just two months down the line. Importantly, with Covid19 around at the same time as flu there will be a need to differentiate, so things will have to ramp up phenomenally”.

From a personal perspective Baines doesn't see a vaccine being widely available for at least a year and even then he says testing will still be required and this ties in with recent comments from other commentators that the virus is going to be around for some time to come and could cause significant issues in clashing with the forthcoming flu season.

Despite much of the focus having been on the US where Longhorn the owner of the rights to PrimeStore is based, Baines tells me that it is now gaining traction elsewhere. “We have of this week commenced manufacturing in Germany and now also have sales in Africa and there are also discussions taking place in India, so a lot is happening”.

The UK is also now ramping up Baines adds which has been assisted by a recent report from Public Health England that recommends PrimeStore as being the safest device for transportation.

Although the device may well be more expensive than those on offer from competitors, the benefits clearly outweigh any monetary consideration as the reagent deactivates COVID-19 (and other viruses, bacteria) on contact and does not require cold storage. This means that the sample can be sent and analysed at a cat 1 lab, cat 2 lab or cat 3 lab, opening up more opportunity to analyse the tests.

This enables for much more testing, a speedier response and less restrictions where the CEO points out that PrimeStore is not dependent on a specific temperature and can be transported by a normal carrier.

He also adds that as part of the UK adoption the company has very recently had to take on an extra 20 staff which suggests that the expectation of a gearing up is set to gather pace.

The PrimeStore deal with Longhorn sees EKF as the ‘key manufacturer of the critical reagent that goes into the tube and the company has been increasing its operations in the US.
Despite the recent positive broker upgrades, it is perhaps worth noting that currently, the most recent note does not make any provision for US orders beyond September or for that matter any orders from the UK and Europe.

Indeed, the broker added earlier this month that receipt of such, would present further upside potential.
No point in attempting to second guess what that could provide in terms of additional income and profits, but suffice to say one would expect a potentially decent uptick in EPS.

But, while investors have concentrated their minds and arguably rightly so on PrimeStore, there is so much more to EKF which provides for a longer term interest that could see the company driving to sustainable increased revenues and growth.

Baines explains to me the three areas of the business which includes point of care, the largest generator of revenue covering diabetes and hematology.

As an example, EKF's device the Quo-Test HbA1c analyzer is a highly acclaimed fully automated desktop point-of-care device for easy reliable measurements for the monitoring and management of diabetes in a point of care setting.
Such an analyzer is, in an age when diabetes is on the increase a much needed piece of equipment and where optimum performance is required, then the Quo-Test is considered a stand out.

With lockdown however there were understandably issues around point of care services and thus a slowing down for EKF.
To this end Baines says “its actually not turned out to be as deep as we first thought or feared and the base business is now coming back on line. Quite a bit didn't actually fall off, as after all, with a lot of this there is a must need to test”.

With various partnerships and deals in place away from PrimeStore, EKF also retains a stake in quoted Renalytix which is currently worth north of £14m.

It is something investors have picked up on and Renalytix now with a Nasdaq listing is gaining ever increasing awareness.
The interest isn't lost on Baines and we touch on that and the rather nice cash pile EKF sits on which is forecast to come out at £20.5m for the financial year ending 2020.

Regarding cash the CEO comments on working capital, “we don't actually need too much in the way of that, we aren't really a capital intensive business as some years back our Chairman had the foresight to focus us on automation”.
So, what about the money I have to ask, increasing and progressive dividends perhaps. “We will pay dividends yes, but there are other ways of utilising the cash for the benefits of shareholders and we have some ideas on that”.
This doesn't appear to focus on any potential acquisitions, rather, it is more about strategic investments that may mirror Renalytix.

EKF has a relationship with US based Mount Sinai Innovation Partners and this, explains Baines, presents significant opportunities for EKF to collaborate on ground breaking medical technologies that can be spun off and proceed down the IPO route.
Baines sounds excited about the prospects and potential in this area and points out that the partners are made up of the very top people in their field in the US and there are some ground breaking novel developments.

Although there is clearly much going on at present within EKF, the shares for now appear constrained by a seller.
However, there were signs yesterday afternoon on heavy volume that any seller could now have been cleared which aligned to any further positive news flow could quickly ignite the stock to a higher and more reflective level.

[crazycoops] 25/7/2020 08:33

Good morning all. Can someone please advise where I can find this write up from Hastings. Thanks in advance.

[firtashia] 24/7/2020 20:37

Price moved in the right direction today on what was relatively large volumes traded. Does indeed suggest the seller has finished and hopefully augurs well.

[bscuit] 24/7/2020 14:22

Thanks Hastings for your very good write up. I have stepped aboard with 20,000.

[melody9999] 24/7/2020 09:41

Yep I've just dropped a few more in my ISA too

[bones] 24/7/2020 08:51

In for a very decent pile of EKF this morning at 50.2. Been waiting patiently for the right sign of a breakout from the consolidation. Huge volume last night seems to have cleared out some resistance, so gives confidence of a free run up from here, given the positive messages coming out of the company as well as their twitter feed starting to promote the Longhorn products.

[rivaldo] 24/7/2020 08:51

Hi Cheshire Man, good to see you here too. I posted only last week that I'd topped up much more heavily here after having a small holding for a while, so my timing appears also to have been unusually good :o))

When we get confirmation of Primestore order expansion in Europe we may well see a very interesting reaction here.

[melody9999] 24/7/2020 08:41

Well done Cheshire - would you like to grab a few more just to help us over the 50 barrier please?!

[retirementfund] 24/7/2020 08:37

Continuing to load up down here the second half of this year is going to be incredible should be double this price now in my humble opinion

[epicsurf] 24/7/2020 08:28

Seems such a common trait with aim stocks,soon as a seller is cleared out
The stock moves forward quickly, gives you a great opportunity to acquire shares

[cheshire man] 24/7/2020 08:23

Good morning rivaldo,,,,,,,,did not know you held these, yes hopefully the seller has departed :-)

[rivaldo] 24/7/2020 08:18

Excellent - looks like those large trades yesterday did the trick.

[cheshire man] 24/7/2020 08:06

Well looks like my timing was pdg,,,,,not often it happens :-)

[wan] 24/7/2020 07:29

“Clearly there is a certain upside potential. We see the routine business coming back. As far as the molecular diagnostics business is concerned, there is no doubt we will sell anything we can produce over the next half year,” Roche CEO Severin Schwan said on Thursday's earnings call -

COVID-19 test demand backs 61% jump in Roche molecular diagnostic sales in 2020

PUBLISHED
July 23, 2020

Dive Brief:
Roche reported a 61% increase in molecular diagnostics revenue across the first six months of 2020 during its second quarter results presentation Thursday. The company said COVID-19-driven demand enabled its testing unit to grow despite a slide in sales in other parts of the company.

Roche said sales in its largest diagnostic business, which sells centralized and point-of-care products, fell 15% during the first half of the year. But soaring sales of COVID-19 tests offset those losses, causing the overall diagnostics business to finish up around 3%.

Thomas Schinecker, CEO of Roche Diagnostics, expects a “very good” second half of the year on the grounds that routine testing will return while demand for COVID-19 kits remains high.

Dive Insight:
Sales across all Roche units fell 15% in May as demand for COVID-19 diagnostics failed to fully offset the negative effects of a decline in routine testing and drop in pharmaceutical sales caused by the deferral of appointments. The easing of restrictions imposed to curb the spread of the virus led to a recovery late in the quarter. Overall sales were up 3% in June.

Roche plans to build on its momentum in COVID-19 by introducing four new products. Two of the products are combined coronavirus-influenza tests. A “rapid” antibody test and a Elecsys assay for detecting antibodies to the coronavirus spike protein are also in the works. Roche said the Elecsys assay will be important for vaccines that target the spike protein the virus uses to enter human cells.

As it stands, Roche also expects to benefit from the return of routine testing. “Clearly there is a certain upside potential. We see the routine business coming back. As far as the molecular diagnostics business is concerned, there is no doubt we will sell anything we can produce over the next half year,” Roche CEO Severin Schwan said on Thursday's earnings call.

Full story -

[cravencottage] 23/7/2020 21:23

Let's hope so Tole

After the recent Trading Statement i'm amazed EKF is available at these bargain prices.

If the seller's offski then the market will begin to catch up here..

Onwards and Upwards :-}