Revenues double at biotech business
Biotech business Yourgene Health has said its revenues rose 105% in the 2022 financial year.
The Manchester-based company which is a global leader in molecular diagnostics group noted that the growth of revenue to £37.6m was largely fuelled by its genomic services division which saw saw revenue growth more than treble to £21.6m (FY21: £6.4m) and was dominated by Covid PCR testing and variant sequencing.
Following changes in UK policy regarding Covid testing and the move in February to endemic status the company noted that it was now looking to repurpose its capacity towards other areas.
The business which also offers non-invasive pre-natal testing (NPIT) noted that this area of the business, which entered the US market in January through a partnership with EKF Diagnostics Holdings, had stabilised following what it described as “a challenging first half of the financial year.
The group’s other business area genomic technologies also reported growth with precision medicine now representing 15% of the group’s non-Covid 19 Group revenues.
Lyn Rees, chief executive officer at Yourgene, said: “As COVID surge testing recedes, we are creating a more focused growth platform to reap the benefit of previous investments.
“Our business has evolved significantly over the last 12 months and we have a broader platform, service offering and customer relationships globally from which to grow.”
In order to deliver the growth potential Rees noted the business was currently undertaking a restructure to “reshape the business to deliver improved profitable growth through and beyond the post-pandemic period”
Looking ahead the group said it was focused on accelerating the growth within its core offerings of genomic services, NIPT, PCR tests and Ranger Technology – part of its precision medicine offering.
This alongside the restructure which will see it consolidate its UK activities and form part of a £5m per year cost saving means Rees is excited bot the future.
He said: “We are committed to creating long term shareholder value and, with further expansion into the Americas markets, FY23 and beyond will be an exciting time for Yourgene.”
Yourgene has also announced that its chairman, Adam Reynolds will step down at the next AGM although he will remain on the board as a non-executive director.
Renyolds will be replaced by Dr John Brown CBE, currently a non-executive director of the company and its senior independent director.
Reynolds has been described as being “instrumental in transforming the company in his five years of service as chairman”.
He said:”As we embark on the next phase of Yourgene’s journey we have a very strong successor in Dr John Brown as Chairman. I will remain on the Board as a supportive NED and shareholder and I remain as convinced as ever in the prospects for Yourgene Health.”
Rees added: “I would like to thank Adam for his support and contribution to Yourgene, as the Group has transformed into the business it is today. Adam has been instrumental in overseeing the growth we have achieved and we are pleased that we can retain his extensive experience and knowledge as he remains a supportive NED.
“We are thrilled Dr John Brown is becoming the Group’s Chairman, a testament to Yourgene attracting such a high calibre and experienced Chair, who has been able to get to know the business over the last couple of years whilst in his current NED role. The breadth of capital markets experience in the healthcare sector Dr Brown can offer Yourgene is paramount as the Group enters its next stage of growth and development.”
Following today’s results announcement, brokers Singer Capital Markets and Stifelreiterated their ‘Buy’ ratings, with target prices of 11p and 15p, respectively.
The Singer Capital Markets view was: “We take the opportunity to rebase our estimates, essentially removing all future COVID-related sales and look for a more phased ramp of Core business sales across both Genomic Services and Technologies. We continue to see a substantial opportunity for the group as it emerges post-pandemic, as evidenced by the growing number of blue chip partners signed up and actively using Yourgene’s technologies.”
Stifel said: “The recently revealed deal with Ambry Genetics illustrates the go-to-market strategy for Yourgene in the US. Ambry’s new NIPT screening service in the US is due to go live in September 2022, and Yourgene estimates the contract could generate multimillion US dollar revenues. We look forward to further strategic details at the CMD presentations.”
