Genedrive shares slide as HCV ID uptake remains 'slow'

Molecular diagnostics firm Genedrive saw diagnostic revenues rise slightly in its last trading year but noted that uptake of its HCV ID kit remained "slow".

Diagnostic revenues were up 26.3% at £2.4m, broadly in line with market expectations.

Commercial sales to the US Department of Defense relating to biohazard identification slumped 43.7% to £900,000 after a fulfilment order valued at £300,000 was delayed due to a supplier issue, while work performed under grant-funded projects soared 600% to £1.4m.

The AIM-listed company closed out the period with a cash balance of £5.2m - down 10.3% year-on-year but ahead of market expectations thanks to an R&D tax credit of £1m being received in the second half of the year.

Genedrive pointed to the slow uptake of its HCV ID kit as a concern, with only 12 country registrations being completed, well below its year-end objective of 30.

As a result, Genedrive now expects to also fall short of market expectations for overall revenues in the year ended 30 June 2020, although the group said it remains "confident" of maintaining double-digit revenue growth.

Chief executive David Budd said: "The commercialisation of our HCV ID kit is progressing more slowly than we would have hoped.

"However, we continue to progress WHO pre-qualified status and the registration of the product in our target countries and so reasonably expect an upturn in demand in the future."

As of 0920 BST, Genedrive shares tumbled 16.28% to 18p.