Shares of molecular diagnostics company Yourgene Health (LON: YGEN) are climbing on Monday after the company revealed it has been successful with its tenders under PHE's National Microbiology Framework for Lot 2 (Research and Development Goods and Services) and Lot 3 (Manufacturing, Product Development and Commercialisation).
Lot 2 is a £1.5 billion framework over two years completed by multiple successful bidders. There have been 69 companies appointed to this lot.
Lot 3 is worth £2.5 billion over two years, with just nine suppliers appointed to the lot.
There have been four lots in total, with Yourgene submitting successful tenders in all four lots, one of only three companies to do so.
- Lot 1 – Diagnostic Goods and Services: Value £3 bn, Duration 4yrs
- Lot 2 – Research and Development Goods and Services: Value £1.5 bn, Duration 2yrs
- Lot 3 – Manufacturing, Product Development and Commercialisation: Value £2.5 bn, Duration 2yrs
- Lot 4 – Clinical Laboratory Diagnostic Testing Services: Value £15 bn, Duration 2yrs
Yourgene can offer its Clarigene SARS-CoV-2 PCR assay and Manchester-based clinical laboratory testing services under the National Microbiology Framework Agreement, as well as other testing or test development services.
The framework agreements are not exclusive to Yourgene or a guarantee of orders but allow public health authorities to procure goods and testing services from the AIM-listed company and other providers.
Lyn Rees, CEO of Yourgene, said: “Over the last year we have built up an infectious disease business with an impressive testing capacity and a best-in-class product, and have done so without taking our focus away from our core business.
“We are now well-positioned to compete for the next wave of contracts under this framework, particularly as one of only three companies successful in all four lots.
“We believe this has been the right approach to deliver value to our shareholders as we continue to deliver year-on-year revenue growth and position ourselves strongly in both the private and Government testing markets over the next two years.”
Yourgene Health’s share price is currently trading at14.22p, 2.9% above Friday’s close. It initially climbed to 15.55p earlier in the Monday session.
Should you invest in Yourgene Health shares?
Yourgene Health 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 Yourgene Health shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies