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NOVACYT AGM 2020 HANGOVER THREAD
Bombshells everywhere.
Strap in once again, we've a lot to cover.
#NCYT #ALNOV #NVYTF #AVCT #SKIN #SNG #N4P #ODX #GDR #SYME #BOO #DDDD #HEMO
Bombshells everywhere.
Strap in once again, we've a lot to cover.
#NCYT #ALNOV #NVYTF #AVCT #SKIN #SNG #N4P #ODX #GDR #SYME #BOO #DDDD #HEMO
1. Novacyt lands once of the LARGEST, if not THE largest contracts in the history of AIM. UK Gov has signed them for a purchase order of £750 million, potentially more.
Phase I is £250 million supplying 300 hospitals, the further rollout adds another 700, another £500m.
Phase I is £250 million supplying 300 hospitals, the further rollout adds another 700, another £500m.
Phase II will kick in anytime over the coming weeks or months AND can increase in value BEYOND the £750m. Should covid disappear next week, the very minimum UK Gov would spend is £150m as the initial orders are already out the door.
How would we know if the £750 million + contract has been 'materially changed' - Anthony Dyer addressed this at the AGM. That would be RNS'd to market. The contract is for intended supply and they do not foresee that changing. Any change would be announced by RNS.
This is for the next 6 months ONLY. So is this Novacyt's NHS/DHSC/UK Gov total supply?
NO.
This is ONLY for their decentralised testing as explained at the AGM. Novacyt already supplies centralised tests to labs all over the country. That has not changed and is not changing.
NO.
This is ONLY for their decentralised testing as explained at the AGM. Novacyt already supplies centralised tests to labs all over the country. That has not changed and is not changing.
They will continue to supply decentralised tests to labs, and have increase the range of tests these labs can now use, including WinterPlex, and Covid-HT.
So what is next in terms of UK Gov national rollouts?
So what is next in terms of UK Gov national rollouts?
A: Saliva testing, Gov and Novacyt are running a trial in London and in Care Homes and result of that is due shortly. This is initiate Novacyt's national saliva test rollout and contract.
Nova was one of the first to create a test which can detect LOW viral loads.
Nova was one of the first to create a test which can detect LOW viral loads.
B: Care Homes. The Care Home rollout will be similar to the Hospital rollout we saw yesterday. Supply of Q32's and Q16's which can be used INSIDE the Care Home's all over the UK, by Bupa and other providers. Prof Martin is concluding as we speak. Nearly 22,000 Care Homes...
In the UK, compared to the 300+700 Hospital supply of yesterday's contract. A rollout for just 5% would match yesterday's contract.
Here is a Q16? With Nova's EASY-Cov tests they are magical. Palm wide, light and do 14 100% accuracy tests in an hour. Average speed 4 min per test
Here is a Q16? With Nova's EASY-Cov tests they are magical. Palm wide, light and do 14 100% accuracy tests in an hour. Average speed 4 min per test
The machines are NOT the source of the high contract values. The tests, supply and SUPPORT are why the contracts are totalling 100's of millions. The equipment is affordable and draws hospitals, care homes are private businesses to Nova's best in class range.
Pilots of these machines and Novacyt's range are also running in private businesses are once done rollouts and contracts in industry settings will begin too with the aim of securing major international deals along with smaller local ones. There's more here, but let's more on!
2. NOVACYT is STILL AstraZeneca's supplier as casually dropped mid way through the AGM. The UK labs which process the home delivery and return tests are run by Astra, Randox and Perkin Elmer. Nova supplies the AstraZeneca superlabs with Covid-HT (High Throughput)
3. The US is Novacyt's largest customer now! This surprised us as Novacyt only has 1 member of staff physically located there, but they're managed to pull off sales there remotely anyway! Novacyt sees this as the LARGEST global market and will set up a sales team there...
and the other largest regions globally, to do DIRECT sales, rather than through distributors as they do now. They ONLY direct sell within the UK market now and see expanding sales teams as a major part of their strategy, especially beyond covid-19.
4. They have hired 60 staff this year, with 30 more in recruitment process currently. Many were R&D, Government support roles etc, but the shift in focus now is towards Sales in the UK and Globally. Which takes us to the WHY.
5. Novacyt's target market is not just covid-19, their target is a fast growing diagnostic's market worth $70 BILLION set to grow to $110 BILLION. Figures which both EXCLUDE Covid-19. Covid-19 is. worth around $22 BILLION on top of that. That is the reason for Novacyt's...
Quick hiring push into developing DIRECT sales globally. They are looking at a MUCH larger market than Covid-19, which although good for their sales, is NOT significant compared to the total infectious disease market. Qiagen already makes 1.5 BILLION per year, without Covid.
6. NOVACYT does NOT see Covid sales dropping off in the foreseeable future as indicated by UK Gov, regardless of vaccination. In fact to be vaccinated, or to take any drugs in an NHS ward you first need to be tested for Covid-19, Flud, RSV with WinterPlex, as you cannot...
Give a vaccine to someone with the flu or another major infection. This is the reason for Novacyt's Near Patient Testing rollout at the moment. 100% tests pre-ward, so that staff can place flu or covid sufferers apart and quickly give them drug treatment.
However, Novacyt's new areas of growth will ensure that monthly revenues will NOT fall off before Covid-19 revenues do. They are looking at revenues GREATER than Covid-19. Which takes us to the Mid Cap strategy...
7. They have BOTH Covid and Non-Covid R&D in process right now.
7 A - Covid Innovation is still ongoing. They would not tell us what however they teased the AGM with 'we are continuing to innovate to meet Covid-19 market demands'.
7 A - Covid Innovation is still ongoing. They would not tell us what however they teased the AGM with 'we are continuing to innovate to meet Covid-19 market demands'.
7 B - Non Covid product expansion is happening in 2 ways. The first is their own lightning fast R&D (8 Covid-19 products to market whereas other companies have not yet any).
And the second is through Acquisitions. This includes acquisitions in the USA which was hinted at.
And the second is through Acquisitions. This includes acquisitions in the USA which was hinted at.
SO How has Novacyt managed to stay ahead of the curve, while remaining out of sight by the market. This was explained and will be their advantage going forward in the years aead. Novacyt works side by side by the UK Gov, DHSC and AstraZeneca to develop tests that they want.
They have NOT been merely modifying some existing tech and trying to sell it to the Government. This relationship has ensured the exact specifications and instant rollout of the original Covid test, Covid-HT, EASY-Cov, NPT systems & WinterPlex.
This insider market intelligence..
This insider market intelligence..
Is allowing Novacyt is innovate AGAIN for Covid-19. Sadly, Threads have limits and we have hit this one! No worries, we will do a Part 2 shortly which has the EXCITING stuff. Institutional investment, Mid Cap numbers, NEW products, Oh and resolutions all passed! #TheRoadToMidCap
