Bioventix posts flat sales despite testing disruption

Bioventix (BVXP) uses sheep monoclonal antibody technology to supply antibodies that can locate specific cells within human blood to make clinical diagnoses. Thus, its business is “intrinsically linked” to the diagnostic activities in hospitals and clinics, which have been postponed or hampered by the Covid-19 pandemic.

Over the past year, the global health crisis has led medical resources to be diverted to help those affected by the virus. The Aim-traded company added that “even where capacity remains, there is ongoing evidence that patients are choosing not to present to healthcare professionals or not to enter diagnostic pathways”.

Despite those conditions, however, Bioventix’s revenues for the six months ending December were broadly flat. Vitamin D antibody revenues weren’t expected to match previous growth rates, but the group still posted sales and royalties here of roughly £2.3m, up 4 per cent on the second half of 2020.

Meanwhile, antibodies for thyroid disease tests and fertility diagnostics were knocked by the slowdown in routine healthcare appointments during Covid restrictions. But sales relating to the group’s troponin antibodies were up considerably and Bioventix said it remained positive about the future success of these products. Troponin is a biomarker used in heart attack diagnostics.

On the research and development front, Bioventix said that, among other projects, it was pleased with its pollution exposure assay and hoped to have a prototype urine lateral flow test in a UK trial later this year.

finnCap withdrew its forecasts in October because of poor visibility to customer royalty streams during Covid-19’s disruption to diagnostics. Its estimates remain under review, as does our take. Hold.

Last IC View: Hold, 3,455p, 21 Oct 2019