- Overall Genedrive PLC (LON: GDR) reported a business and financial update for the six months to December 2017 in line with expectations
- Launch preparation of Genedrive® HCV test with partner Sysmex on track, expect sales to start coming through in CY2018
- £1.3mln income from the ongoing collaboration with the US DoD, in line with expectations
- Discussions for the disposal of the Services business are in progress
- With £4.6mln of cash at end-2017, and given the company's expected cash burn, a capital raise in the next 12 months can't be ruled out
- Full financial results for the six months to December 2017 to be published on March 20th
As discussed more in depth in our initiation note of November 2017, we value Genedrive on a SOTP basis.
Based on expected revenue of c. £15 mln in 2025, we value Genedrive’s diagnostic division approx. £24 mln.
Including the value we attribute to the Services business and the company's net debt leads to an equity valuation of about £25 mln, almost 5x current market capitalization.