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Genedrive (GDR) Shares Fall After Overcoming Technical Hurdles

Sam Boughedda
Sam Boughedda trader
Updated 1 Jul 2021

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Shares of Genedrive (LON: GDR) have fallen on Thursday after the company said, in an update on its Covid-19 test kit, that it has “overcome significant technical hurdles”.


Genedrive has been developing a new Point of Care (PoC) molecular workflow and assay for more than 9 months. The test detects the presence of the SARS-CoV-2 virus in a nasal swab.

Despite the delays, key specifications of sensitivity, specificity, speed, ease of use, and scalability have now been improved or addressed, the company said in a statement.

The test also targets two genes of the SARS-CoV-2 genome and is shown to be inclusive of all current variants of concern, including the Delta variant.

During design verification, the specificity of the test was 100%, with a PCR comparable limit of detection of 10-20 copies per reaction.

David Budd, CEO of Genedrive, said: “We are pleased to have achieved significant milestones in the development of our Genedrive® COV19-ID Kit and we have a product in which we are extremely proud.

“Once formally validated, we believe we can make commercial in-roads by expanding the opportunities to get a quick and sensitive molecular test for SARS-CoV-2. The product to date demonstrates a suite of features that have significant competitive advantage: simplicity of workflow, an extraction free procedure, biosafety for the user, multi-gene targeting, rapid time to result, high sensitivity, and cost effectiveness.

“Whether in highly vaccinated countries or not, COVID-19 is likely to be an illness that we live with in the long term, necessitating rapid and accurate testing for infection in a wide range of environments, including outside of healthcare settings.”

Source: IG

Despite the company’s positivity, shares of Genedrive have fallen over 7.5% to 52p, adding to the current 28% fall in the last three months.

Should you invest in Genedrive shares?

Genedrive shares are traded on the London stock exchange’s AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Genedrive shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Sam Boughedda
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.