The analysts said the company’s first half sales were ahead of forecasts as it made progress with its Hepatitis C (HCV) ID Kit, which was launched at the IFCC World Lab conference in South Africa in October.
The kit tests for the virus much more quickly and easily than other products currently on offer.
Hardman & Co said the diagnosis of HCV is a multi-million-dollar market opportunity.
“The hepatitis C market is a global opportunity, very large even in developing countries. With a strong commercial partner now in place, early evidence of sales traction will highlight the valuation anomaly,” it said.
In September, the kit was awarded a CE mark, meaning it could be sold into Europe and other countries that accept this certification.
"Now that the Genedrive 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," Hardman & Co said.
Distribution partner, Sysmex, has successfully completed the first field study in Africa. The results of the study were published earlier this week, revealing the “robust performance” of the handheld device in a third party setting and on territory specific examples.
"Genedrive technology ticks all the boxes described for an ‘ideal’ in vitro diagnostic that satisfies the need for powerful molecular diagnostics outside the hospital setting," Hardman & Co said.
Sales in the six months to the end of December fell to £2.6mln from £2.88mln the same period a year ago. The company ended the period with a strong-than-expected cash balance of £4.6mln.
"The next six months are set to be an exciting period for Genedrive PLC as the company transitions to commercialisation of its diagnostics products," Hardman & Co. said.
"It remains on track to report full-year sales in line with our forecasts (£5.1m), which include a boost to the diagnostics business from the first sales of the Genedrive HCV ID platform and kits to its distributer, Sysmex, towards the end of the second half."