Shares of Sensyne Health PLC (LON: SENS) rallied 9.67% after investment firm Liberum said that its shares could rally up to 80% higher as its unique AI technologies are used in the UK's COVID-19 mass testing initiatives.
The company announced a new deal with Excalibur Healthcare Services to use its MagnifEye system combined with Excalibur's proprietary lateral flow rapid coronavirus diagnostic tests. Excalibur’s COVID-19 test has been approved by UK health regulators for use in asymptomatic and symptomatic individuals due to its speed, sensitivity and accurate diagnosis.
Graham Doyle, an analyst at Liberum, wrote: “Given it is already approved for mass population screening by the UK regulator and has capacity for 1.1bn tests per year, this could be an extremely large commercial opportunity for Sensyne which will be guaranteed a minimum of £4.8m of royalties over the first two years of the agreement,”
The analyst added that the deal makes it easy for Sensyne to hit its revenue targets this year, validating its business model, including the recent focus on industrialising its data set.
Sensyne is set to earn a royalty each time its MagnifEye app is used in conjunction with Excalibur’s COVID-19 tests. Given that Sensyne’s financial year ends in April, investors are likely to see some of the revenues generated from today’s deal in its results.
Sir Chris Evans, Excalibur’s CEO, said: “Through our laboratories in Cambridge, we have been working with Sensyne to optimise the application of MagnifEye with our rapid antigen COVID test,”
Adding:
“The combination has significantly increased the sensitivity of the test, and we believe makes it the most advanced and accurate antigen lateral flow test in the worldwide market today. This is another triumph for UK science and technology.”
Lord Drayson, Sensyne’s CEO, commented: “The combination of Sensyne's clinical AI technology and Excalibur's test will, we believe, provide the most accurate diagnostic lateral flow test available in the world today.”
Sensyne Health share price.
Sensyne Health shares edged 9.67% higher to trade at 170p after rallying from Monday’s closing price of 155p.