Investment dents profits at diagnostics firm

DIAGNOSTICS firm Epistem saw first half losses double after continued investment in its Genedrive device.

Genedrive is a handheld device which uses molecular diagnostics to quickly test for a range of conditions.

The Manchester company had a number of technical setbacks with the device last year which led to the termination of a deal with a US manufacturer Becton Dickinson to make and distribute its test for tuberculosis.

Since then the company believes it has made “significant progress” towards finalising the unit and is now moving from the development phase into final manufacture.  

“Recent positive independent clinical testing has helped increase our confidence, as we finalise the pre-launch stages for our TB assay,” said the company.

“Whilst we continue to remain vigilant, we are confident that the technical and manufacturing issues reported in the Preliminary results have been resolved with final preparations to commence formal independent regulatory clinical trials of our TB assay and Genedrive unit now in hand.”

In the six months to the end of December turnover was marginally down from £2.7m to £2.5m, while pre-tax losses doubled to £730,000 from £329,000.