GCIVerici Dx sees revenue surge to $3.3m in H1, on track to be profitable by 2025
Specialist kidney transplant diagnostics firm () (£16m mrkcap at 6.5p) has reached a major inflection point, offering investors multiple potential catalysts that could each deliver significant upside in the years ahead.
Indeed, today the company reported H1'24 revenues of $3.3m vs $1.0m for the whole of 2023, driven by the successful technology transfer of its unique pre-transplant prognostic (re Clarava for deceased donors) and RNA urine samples to Thermo Fisher Scientific. To date, TMO has paid $2.8m of the initial $5.0m under its groundbreaking global licensing deal, with the rest anticipated by Nov'24.
However, this is just the 'tip' with additional royalties expected once TMO begins selling its version of this 1st-of-its-kind blood test. Moreover, the partnership should be highly profitable too. In fact, assuming things go to plan - then as a possible indicator, investors might wish to review , a similar medical diagnostics licensing firm whose stock has risen 20-fold since 2011, and trades on >13x EV/sales.
Sure, Verici Dx is not yet profitable (H1'24 EBITDA - $1.1m), yet this is within sight. Based on estimated 90% gross margins and $9m of annualised fixed costs (ex D&A), Singer Capital Markets are forecasting sales to climb to $7.5m and $13.0m respectively this year and next (vs $1.0m LY), with adjusted EBITDA coming in at $1.3m in 2025. Similarly, they have a target price of 20p/share. Net funds closed June at $7.0m following a $8.2m placing at 9p/share in February, with 's cash runway extended into 2026.
Elsewhere, the Board is also completing an important validation study for its 3rd kidney transplant test Protega, with results set for H1'25. On top, the post-graft diagnostic Tutivia is already being sold in the US after demonstrating material clinical benefits in terms of improved performance, actionable insights, and shorter testing times vs the current standard of care.
The next key milestone is to obtain US Medicare/Medicaid insurance ($2,650/test) cover, which nationally handles 65% of all transplant patients.
So what makes 's technology different?
Well, the patented 'RNA signature' platform assesses (re 79% Positive Predictive Value for Tutivia) the risk of organ rejection BEFORE damage has actually occurred. In comparison, most (if not all) other rival tests rely on measuring 'debris' in the bloodstream - ie once organ damage has already occurred, which is frankly too late.
CEO Sara Barrington commenting: "The steps we took at the start of the year to bolster our balance sheet positioned us well to progress our strategic ambitions. The focus through the remainder of 2024 remains to advance multiple growth and value creation initiatives over the short, medium and longer term, whilst maintaining our strong financial discipline. I am pleased with the strong start we have made across these multiple revenue generation initiatives."
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