Genedrive PLC’s (LON:GDR) inclusion in a Public Health England framework agreement for diagnostic equipment and services is very positive, said Peel Hunt analysts in a broker note.
“Whilst this is an early indication on future, potential contracts, we consider it a very positive development towards future revenues,” the broker said, retaining its ‘buy’ recommendation.
The framework allows Public Health England, as the sole buyer, to issue call-off orders for products and services for an estimated four-year period, up to a combined value of £3bn, it noted, although it added that about 112 suppliers had been successful.
“The focus today is likely to be on the read-across to coronavirus testing revenues (where we believe Genedrive’s proprietary and stable ‘PCR bead chemistry’ lends itself very well to high-throughput testing formats, whilst helping overcome challenges with wider distribution/logistics).
“However, we consider this good news for the underlying business too (which in our view has some differentiated offerings from the ‘pure-play Covid stocks).”