# genedrive plc Remodelled for growth

- Link: https://www.directorstalkinterviews.com/genedrive-plc-remodelled-growth/412742077
- Published: 2017-12-13T11:32:05+00:00
- Author: Giles Arbor

**[⌊Hardman & Co Report Report Downloads⌉⌊Hardman & Co Report Report Downloads⌉[genedrive plc**(
LON:GDR) is a commercial-stage company focused on point-of-care/need molecular diagnostics
and biomarkers. Its Genedrive® in vitro diagnostic testing platform is at the forefront
of this technology, offering a rapid, low-cost, simple-to-use device with high sensitivity
and specificity in infectious disease diagnosis. The rapid and accurate analysis
of patient samples aids significantly the clinical decision process, with point-
of-need testing particularly important in emerging markets. Hepatitis C diagnosis
is a multi-million dollar market opportunity, which is well supported by the WHO
and other philanthropic organisations.

**Strategy:** Now that the technology platform has received CE Mark, the new management
team has completely re-focused the company onto the commercialisation pathway for
diagnosis of infectious diseases, signing two important commercial agreements with
Sysmex, a major global player.

**Genedrive:** With global healthcare focused on early intervention, the need for
fast, accurate point-of-care/need diagnosis, particularly in remote locations, is
obvious. The company has been validated through CE Mark and the Genedrive HCV ID
Kit is being launched into a big commercial opportunity in emerging markets.

**Valuation:** To highlight the disconnect in valuation, we have compared a number
of quoted in vitro molecular diagnostic companies with an emphasis on those with
hand-held/bench-top PoC/PoN analysers. About £30m has been invested, both in Diagnostics
and Services, to get the company where it is today.

**Risks:** The platform technology has been de-risked through the receipt of CE 
Mark for its first two assays – hepatitis C and tuberculosis. The main risk is commercial,
given that it often takes time for new technologies to be adopted. However, partnering
with a major global player significantly reduces this risk.

**Investment summary:** Genedrive Plc technology ticks all the boxes described for
an ‘ideal’ in vitro diagnostic that satisfies the need for powerful molecular diagnostics
outside the hospital setting. The hepatitis C market is a global opportunity end
remains very large, even in the target developing countries. With a strong commercial
partner, early evidence of sales traction will highlight the valuation anomaly.

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