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Omega Diagnostics Shares Surged 5.35% Today, Here’s Why

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Simon Mugo

Shares of Omega Diagnostics Group Plc (LON: ODX) today surged 5.35% extending a 3-day rally that begun after the company reported a smaller loss during the first half of its 2021 financial year.

The diagnostics company released the interim results for the six months ended September 30 on Monday reporting a revenue drop of 29% to £3.16 million as compared to last year’s £4.46 million.

Omega diagnostics shares rallied after the firm reported a statutory loss of £0.28 million, which was lower than the £0.29 million loss reported in 2019, despite its gross profit margins falling to 42.9% versus last year’s 67.5%.

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Investors bought the company’s shares given the huge potential unlocked in the Chinese market after Chinese regulators approved its self-testing food intolerance product Food Detective. The company expects to sell over 1 million Food Detective tests by 2023 at an average price of $15.5 apiece generating millions in revenue.

Omega diagnostics’ VISITECT® CD4 Advanced Disease test is the world’s only instrument-free self-testing HIV for monitoring people living with HIV, which the World Health Organisation (WHO) pre-qualified in July 2020.

The company can supply four-to-six million tests over the next three-to-four years and it has a supply agreement with the Clinton Health Access Initiative (CHAI) to accelerate the access of VISITECT® CD4 Advanced Disease in low and middle-income countries.

The company is also a major supplier within the British government’s Rapid Test Consortium, an opportunity that could make it up to £200 million if the deal proceeds and the firm meets its supply target of up to 2 million tests a week.

Omega Diagnostics share price

Tradingview chart of Omega diagnostics share price 02122020

Omega diagnostics shares surged 5.35% to trade at 59p having rallied from yesterday’s closing price of 56p.

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Simon Mugo
Simon Mugo
Contributor

Simon ist Autor und Analyst für den Bereich Finanzwesen und blickt auf über sechs Jahre professionelle Erfahrung als Trader zurück. Er absolvierte einen Bachelor in Mathematik und Informatik und hat eine Leidenschaft für die Finanzmärkte. Simon handelt FX, Rohstoffe und Aktien. Er konzentriert sich auf Price Action Trading.