Premaitha Health Plc Early IONA traction & investment agreement

Hardman & Co ReportPremaitha Health Plc (LON:NIPT) is a molecular diagnostics company that has used the latest advances in DNA technology to develop a non-invasive pre-natal screening test. IONA is its first test, for detection of genetic defects to estimate the risk that a foetus is carrying a disorder, such as Down’s syndrome. Although IONA is entering a competitive market, it does have some advantages and is the first test to be regulatory approved via a CE Mark. Interim results show the first signs of commercial traction which are expected to accelerate herein. Also, Premaitha has signed a strategically important partnership with Thermo Fisher which adds considerable credibility.

► Interims: 1H’16 results represent the first meaningful set of numbers since the IONA test was approved and launched. With five commercial relationships during the period, sales emerged at £0.6m. The underlying loss was £2.7m as the company built up laboratory testing facilities and commercial infrastructure.
► IONA: This test is a screen for risk assessment that a foetus has a serious genetic disorder. The test is extremely accurate (sensitive) with few false positives and eliminates the need for unnecessary invasive follow-up tests that cause anxiety and stress. An option for gender determination has just been added.
► Strategic investment: Premaitha also announced a strategic partnership with Thermo Fisher Scientific (TMO), that supplies the DNA sequencing instruments for the IONA pre-natal screen. TMO is investing £5.0m to help Premaitha improve its offering and the efficiency of the IONA test.
► Risks: After receiving CE Mark for IONA, Premaitha received notification that Illumina Inc. had filed patent infringement claims against the company. Although Premaitha will put up a vigorous defence and has provided £1.9m for costs, litigation is an expensive and time consuming distraction for management.
► Investment summary: Premaitha Health Plc has an EV of £39m. The IONA test is the only product for NIPT with regulatory approval in Europe. Although the patent litigation is a distraction, commercial partnerships are being signed and these will drive future revenue growth. Our conservative assumptions, based on signed deals, still suggest that Premaitha will be EBITDA positive in fiscal 2018.

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    Twitter
    LinkedIn
    Hardman & Co

    More articles like this

    Hardman & Co

    Premaitha Health Plc Excellent first year for IONA®

    Premaitha Health Plc (LON:NIPT) uses the latest advances in DNA sequencing technology for non-invasive prenatal screening tests. IONA uses complex statistical analyses to determine the likelihood that a fetus is carrying a disorder such as Down’s