Shares in diagnostics firms Genedrive (GDR:AIM) and Yourgene Health (YGEN:AIM) were in demand on Monday after announcing success with their respective tenders into Public Health England’s National Microbiology Framework for diagnostic goods and services.
The framework agreement which is worth up to £3 billion opened in November 2020 and sought to appoint suppliers of clinical laboratory diagnostic testing services. The award doesn’t guarantee orders but allows participating authorities to issue call-off orders for products in the future.
Yourgene Health will now be able to supply its Clarigene SARS-CoV-2 assay and Manchester-based Covid testing service to authorities under Public Health England. The shares added 3.5% to 15.5p.
The company’s products have mainly been reliant on the private pay market which has been impacted by restrictions on businesses and international travel. The firm is also part of the UK’s Fit to Fly and Test and Release schemes and is sole supplier to Leeds Bradford Airport.
Research house Stifel commented: ‘Potential for significant additional revenues from public sector testing contracts could generate upside to our current estimate for £5 million of Covid testing revenues in FY22 and zero revenues in FY23, both of which could prove too conservative.’
Gendrive shares flew 9% higher to 73.1p after its CE marked products 96 SARS-VoV-2 Kit, Genedrive HCV ID kit and MT-RNR1 ID kits were given approval under the framework agreement.
Chief executive David Budd said: ‘This is an early notification of the decision and we will update shareholders when we have more information on what this contract may mean for orders and revenues.’
In addition to supplying UK public health bodies, Genedrive is also engaged with a European Ministry of Health which, if successful could make double digit millions of revenues, according to the company.