Key points:
- Myhealthchecked just signed a distribution deal with Lloyds Pharmacy.
- The deal will see Lloyds Pharmacy exclusively sell its Fit to Fly rapid COVID-19 antigen tests.
- The deal could be pretty lucrative, but we will only know after the calendar Q1 2022 results release.
The Myhealthchecked PLC (LON: MHC) share price surged 15.3% after unveiling a new distribution partnership with AAH Pharmaceuticals Limited (Lloyds Pharmacy) to supply its Fit to Fly/Pre-departure rapid COVID-19 antigen test.
The rapid COVID-19 antigen test will be the only such test sold by Lloyds Pharmacy due to the exclusive deal that should generate more sales for Myhealthchecked compared to a situation where the pharmacy chain was selling multiple tests.
The test can be taken at home before travel or overseas before returning to the UK. The test results are then verified by a trained professional within two hours of the test being completed.
The passenger then receives a COVID-19 test certificate that they can use to travel out of the UK or return to the UK. the Fit to Fly tests will be available at Lloyds Pharmacie starting in January 2022.
The partnership could be very lucrative for Myhealthchecked, given the rising COVID-19 cases have made it crucial for airlines to certify that their passengers have tested negative for the coronavirus before travelling.
However, demand for the tests may slow down as fears about the Omicron variant subside after scientists deemed it less virulent than other dominant strains such as the Delta variant.
Many experts are now expecting the COVID-19 virus to become endemic similar to the flu, which is prevalent during the winter season. Still, a simple flu shot is adequate to protect most people against the virus.
Still, Myhealthchecked has a significant advantage given the nationwide presence of Lloyds pharmacies across the UK, making its rapid antigen tests available to a large percentage of UK residents.
I will be looking forward to its Q1 financial results to see whether the deal contributed significantly to its revenues.
Penny McCormick, MyHealthChecked Plc’s CEO, said: “I am pleased to build on our existing relationship with Lloyds Pharmacy with our new COVID-19 antigen test service for travel. Lloyds Pharmacy is already well established with a PCR testing portfolio that includes inbound PCR testing for fully vaccinated and non-vaccinated customers. We are delighted to be supporting Lloyds Pharmacy further with their growing COVID testing portfolio and working with them as testing protocols for travel continue to evolve.”
*This is not investment advice. Always do your due diligence before making investment decisions.
Myhealthchecked share price.
Myhealthchecked share price rallied 15.32% to trade at 2.71p, rising from Tuesday’s closing price of 2.35p.
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