The 41% collapse in medical testing kit-maker Omega Diagnostics’ (ODX:AIM) share price since September may have created a buying opportunity.
Pre-tax profit forecasts have been slashed 20% for the current year due to delays in bringing HIV diagnostic test Visitect CD4 to market. However, single digit profit growth is forecast for the next two years and upgrades could arrive if the test is finally launched.
Indeed, analysts at FinnCap anticipate adjusted pre-tax profits of £1.2 million and £1.5 million in the next two years, up from £1.1 million in the 12 months to April.
Omega makes a range of food intolerance, allergy and infectious disease diagnostics. CD4 is a disposable mobile monitoring device that assesses the status of HIV suffers. This is especially useful for testing those living in rural areas where the results can be determined at the point of care instead of being sent to a lab. There is no such device currently on the market.
FinnCap has not included revenues from CD4 in its estimates. Field tests in India were positive, but Omega is repeating the trials in Kenya, which Omega will be supervising and could start in January.