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Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
The rehabilitation of Premaitha Health (NIPT) continues. The latest news is from India where there is not even a whiff of a patent challenge from Illumina and where our boys have signed a 3-year agreement with one of the most advanced clinical laboratory groups in the country to provide a bespoke, high quality and scaleable NIPT solution.
We expect that initial agreement to be extended and the revenues from this deal are said to be likely to be "material" - we'd read that as 7 figure sterling per annum.
The partner in India is said to be one of the country's leading diagnostic groups but is un-named. Why? This is a bit of an own goal for Premaitha, why can't it name? But we are told that the partner's clinical network which can deliver mass screening using the NIPT kit reaches over 2,000 cities and towns across India. Presumably anyone with any knowledge of Indian health can work out the partner's name from that data making the secrecy all the sillier.
Under the proposed deal Premaitha will supply sample and library preparation consumables to the partner's central laboratory, and perform the NIPT analysis on the resulting sequenced DNA data in its subsidiary, Yourgene's bioinformatics centre in Taiwan. The deal will kick off in Q4 2018 and it will increase the ramp up in sales and profitability of this company.
That is not discounted in the share price, even though the stock has raced up to 8p-8.1p in the weeks following that recent placing at just 4.5p. We still view the stock as very cheap and expect it to be 20p+ by Christmas as more large orders, mainly in Asia, are announced. Strong Buy.
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