Ekf Diagnostics Share Discussion Threads

[malcolmmm] 06/8/2020 08:53

Nice turnaround

[hastings] 06/8/2020 08:04

I think you are right Wan.

[wan] 06/8/2020 07:33

The positive effects for EKF from PrimeStore MTM obviously has much further to run, but I believe (at this stage) that there could potentially be another significant COVID-19 related tail wind for EKF.

Due to the significant levels of PCR testing volumes (which PrimeStore assists and optimises), downstream molecular reagents have also been in huge demand (and suffered from supply constraints etc). If I am anywhere near right, then EKF is likely to be receiving a significant increase in enquiries, and hopefully increased sales from their already expanded life science division.

This is only a guess based on basic research, so we will have to wait and see.

[wan] 05/8/2020 17:21

Very large volume recorded today, so it will be interesting to see what the next few days provide.

[wan] 05/8/2020 16:49

James, FYI it does specifically state the following -

"New UK supply contract for COVID-19 sample collection kits"

"New partner from the private sector to use PrimeStore MTM for UK staff testing"

But in any regard, it was the catalyst for another upgrade ;-)

[essentialinvestor] 05/8/2020 16:44

Looking very strong.

[james188] 05/8/2020 14:23

Wan, the RNS talks about a contract from a private sector partner. Not specifically a new partner, but a new contract. If the company advisors are on their game and using language precisely (which I expect that they are), that points towards an SBS deal. To put it another way, the RNS would be even more significant if the deal was with a further customer in addition to the SBS framework agreement (or similar). I would have expected a much clearer steer if that was what had happened. As you say and again I agree, it all helps in any event. We should find out more with the interims next month, if not before.

Thanks for your various posts, which have provided a lot of really useful information as to the science etc.

James

[wan] 05/8/2020 13:15

Thanks Bones. It's a point I have made several times, that EKF's COVID offering targets safe sample collection and transport for molecular testing and is thus not so dependant upon the success of a particular test.

Update, as of the 4th August, the U.S. FDA has authorised 203 coronavirus diagnostic tests under EUAs, which include 166 molecular tests, 35 antibody tests, and 2 antigen tests.

As can be seen, the lions share remains with molecular testing.

[bones] 05/8/2020 12:26

Very Bullish update from N+1 Singer, excerpt:

“We increase our FY20 revenue estimates by a further £3m and EBITDA by £2m. Given the nature of the device, which is agnostic over which molecular test is used, we expect demand to continue at elevated levels for the duration of the pandemic and continue to see further upside potential to our already materially upgraded estimates. EKF remains one of our best Ideas for 2020.

[wan] 05/8/2020 10:22

James, I believe EKF are indeed an attractive and important partner for Longhorn.

Also, I am not sure the new order is from SBS, as the RNS states "New partner from the private sector to use PrimeStore MTM for UK staff testing". Anyway, it 'all' helps and it will be interesting to see what orders EKF Germany receive and it's good to learn that production there is also up and running.

[retirementfund] 05/8/2020 10:19

EKF has some serious traction with orders having picked up another £3m contract. It has to be noted that this is since the last update on 14th July. we are clearly seeing compound growth regarding the sample collection kits. We are only 5 weeks in to the second half of the year but it looks apparent to me that Sample collections kit sales will be more than first half turnover figures on their own. Absolutely stunning!

There are many companies in the Covid 19 space but EKF is something else as it is picking up significant orders building on an already very profitable underling business.



Above is in my opinion

[faz] 05/8/2020 09:47

It's a competitive commercial world and it may suit one or both parties to not mention names.

[hastings] 05/8/2020 09:46

It is interesting that capacity n Wales has moved from 12k sample tubes per day to 25k, thus suggesting significant demand.

[james188] 05/8/2020 09:41

Wan - I agree with your comments, but I don’t think that EKF is the only manufacturer of the core reagent used in the MTM device. As far as I can tell, the arrangements with Longhorn are relatively recent, whereas Longhorn invented the device back in 2006. Presumably EKF has become a particularly attractive partner for Longhorn.

Hastings - Thanks. SBS looks the most obvious candidate, but I thought that it was a bit odd that the company deliberately chose not to identify the customer. A short broker note from N+1 Singer this morning gave no further info.

[hastings] 05/8/2020 09:23

James, pretty certain it's SBS which is supplying both the NHS and private sector.I'm hoping for another catch up with the CEO and will post accordingly.

[wan] 05/8/2020 09:16

EKF may not be the only manufacturer of the device itself, however, the orders in the US are predominantly for the core reagent in PrimeStore MTM. So this will be supplied to a multitude of manufacturers, including EKF itself.

[james188] 05/8/2020 09:12

EKF did not name its private sector customer in today’s RNS, but I wonder if it is Source Bioscience (29th April RNS). I would also like the company to give further details about their contract with Longhorn. Whilst EKF has many other lines of business (a key reason that I think it is a very attractive investment proposition), PrimeStore MTM is clearly the main sizzle at the moment. I have not been able to find any information as to the contractual basis of the deal that EKF has with Longhorn, other than the fact that Longhorn owns the IP and that (unsurprisingly) EKF is not the only manufacturer.

[wan] 05/8/2020 09:10

Exactly, it's the wrong type of test! It is a serological test and does the same as the German version and tests for the possible presence of antibodies i.e. you have had coronavirus and it is only qualitative, unlike the version Renalytix is involved with via Kantaro, that could make those test somewhat obsolete!

[pugugly] 05/8/2020 08:51

Hi Wan - The one I heard about was similar to this French one
antibody (TROD)
but the German one had a 2nd leg which indicated possible viral infection subject to further tests -(RT-PCR) unfortunately cannot remember the name of the manufacturer. -

[wan] 05/8/2020 08:23

If it's the test that I think you are referring to, it is a serology/antibody test that does not tell you that you have coronavirus, but instead indicates if you are likely to have had exposure to coronavirus.

Where as PrimeStore MTM is for molecular tests that tell you are currently infected.

Also, that test has been around since March, and it has not exactly restrained orders for PrimeStore.

[pugugly] 05/8/2020 08:14

Not sure you are right about wrong type of test. The German test gives results at point of test (walk-in) in 10 minutes - OK if positive for virus will need further tests to confirm but a very good and fast screening test.

[wan] 05/8/2020 08:05

Pugugly....In any regard, that's the wrong type of test! Primestore MTM is for molecular testing i.e. saliva (watch this space) or nasal/throat swabs.

[pugugly] 05/8/2020 08:02

hastings:> re 350 - Agreed - There are however already German rapid tests (drop of blood) in use which give results in 10 minutes (antibody in 5 minutes and then wait another 5 minutes to show positive/negative for the virus.

[mirandaj] 05/8/2020 07:27

Their holding in Renalytix is valued now at £15.8M on bid price.