The Myhealthchecked PLC (LON: MHC) share price plunged 32.5% after issuing a trading update for the six months ended 30 June 2023. The company noted that its revenues were impacted negatively by the lower demand for COVID-19 testing.
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The consumer home-testing healthcare company generated revenues worth £2.5 million in H1 2023 compared to £9.8 million in H1 2022 due to weaker sales of COVID-19 tests. The company noted a marked increase in demand for at-home COVID-19 tests in the second half of July 2023 but was unsure whether the demand would last.
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Myhealthchecked expects demand for its at-home COVID-19 tests to rise during the Autumn and Winter of 2023 but is not pinning its hopes on the recovery as it diversifies its product portfolio.
The company recently partnered with Boots UK Limited (Boots), the health and beauty retailer and pharmacy group, to launch its extended range of at-home self-testing products via boots.com and across Boots stores in Great Britain and Northern Ireland.
The deal will see Myhealthchecked sell 14 test panels, including two blood and urine sample kits, seven blood prick sample kits, five DNA cheek swab kits, and an additional six MyHealthChecked lateral flow tests, now also available.
Myhealthchecked also warned investors that the partnership with Boots was still in its early stages. As with any brand-new category line, it will take time and support to increase public awareness of the benefits of at-home testing and the ready availability of the products and services.
The company is working closely with the Boots team to support promotional activities and align with their strategic goals.
Penny McCormick, the CEO of MyHealthChecked PLC, said: “Despite the inevitable and anticipated fall in demand for COVID-19 testing, MyHealthChecked remains well-positioned to deliver its plan in 2023 given the distribution relationship we have established with Boots and their nationwide launch of our expanded portfolio of at-home wellness tests. It is always challenging to pioneer a major new category of products in the wellness testing market; however, our long-term outlook remains positive as we continue to support our retail partner in their commercial strategy to meet customers' needs for at-home testing.”
Myhealthchecked (MHC) share price.
The Myhealthchecked (MHC) share price plunged 32.45% to trade at 10.47p, from Monday’s closing price of 15.50p.
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