Genedrive (LON: GDR) shares are down Tuesday after the company reported final results for the year ended 30 June 2021.
The company announced a loss of £0.7 million with revenue of $0.7 million. During the same period in 2020, Genedrive reported a loss of £19.4 million on revenue of £1.1 million.
Year-end cash came in at £2.6m compared to £8.2m in 2020.
Genedrive shares are down over 1.6% at 18.88p.
The AIM-quoted company, speaking about its Covid-19 test product, which was the focus of its equity raise in 2020, said it had high expectations for the product that performed well in independent studies, but its commercial traction fell short of expectations.
As a result, the company believes that, in hindsight, the product was too late to the market to benefit from the accelerated wave of regulatory approvals.
“We are disappointed with falling short on expectation with this new product, but are taking the lessons learned into our commercial plans for our POC COVID-19 product,” stated Genedrive.
David Budd, CEO of Genedrive, said: “We are at an exciting phase for the company with both the AIHL and CoV-POC products about to enter their commercial stages. Our balance sheet is strengthened following the recent equity raise and we are well placed to drive shareholder value going forwards.”
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 GDR shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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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.