The Abingdon Health PLC (LON: ABDX) share price surged 30% after releasing a trading update for the six months to 31 December 2022. The company’s half-year report revealed that it had completed its transformation into a leading lateral flow contract development and manufacturing organisation (CDMO).
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The company noted that it had won more contracts in the six months, bringing the number of active contracts it was servicing to 11 from 3 at the end of H1 2022. In addition, the firm started three new R&D projects, two new technical transfer projects, and two new regulatory projects during the review period.
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Investors cheered the news, as evidenced by the rally in Abingdon Health shares, despite the company’s revenues falling slightly to £1.1 million in the six months, compared to the £1.7 million generated in H2 2021. The company’s full-year revenues rose to £2.8 million, with the firm expecting a much higher figure in 2023.
Abingdon Health told investors it had fully transitioned from COVID-19 and is now attracting new business as a contract development and manufacturing organisation (CDMO). The firm had £4.4 million in cash at the end of December 2022, and its board expects to reach breakeven and start generating positive cash flow in 2024.
The company noted that it had launched its Simply Test range of self-test products in July 2022. The tests include a Flu/Covid combination test and a Strep A Test, among other products. The firm intends to launch the Salignostics SalistickTM saliva pregnancy test from one of its customers on its platform later this year.
Abingdon intends to offer a route to market to its customers through its Simply Test website while distributing some products to physical pharmacy chains through partnerships.
Abingdon Health’s CEO Chris Yates commented: “We have successfully transitioned our business to a CDMO model focused on the lateral flow market. We are pleased with the commercial traction we are seeing and believe this model will provide a sustainable revenue platform. Our focus remains on revenue growth and achieving cash flow breakeven, and we believe we have the financial resources in place to achieve this.”
*This is not investment advice.
The Abingdon Health (ABDX) share price.
The Abingdon Health share price rallied 30% to trade at 6.50p, from Monday’s closing price of 5.00p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.