Genedrive Share Forecast January 2022 – Time to Buy GDR?
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Shares of molecular diagnostics company Genedrive(LSE: GDR) are in the red today, currently trading at 31p at the time of writing. Genedrive shares have surged over 230% in the last month.
Genedrive – Technical Analysis
According to the financial statement released by Genedrive, the market cap of the company is at £30.211 million with total assets worth £4.877 million. Revenue for 2021 was at £687.00K with a profit margin of -100.58% compared to £1.06 million in 2020.
Moving averages such as Exponential Moving Average (10)(36.28), Simple Moving Average (10)(37.30), Exponential Moving Average (20)(37.99), Simple Moving Average (20)(41.06) and Exponential Moving Average (30)(37.45) are indicating a sell action. On the other hand, oscillators such as Relative Strength Index (14)(41.44), Stochastic %K (14, 3, 3)(11.92), Commodity Channel Index (20)(−130.68), Average Directional Index (14)(32.68) and Awesome Oscillator(−5.53) are neutral.
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Recent Developments
The main product of Genedrive is a molecular diagnostics platform. This is used for the diagnosis of infectious diseases and used in patient stratification. The platform has been validated and launched in Africa and the Asia Pacific region. It has also gathered distribution agreements for the use of its platforms in EMEA. So the use of the platform extends to include Hepatitis C, military biological targets and, perhaps most importantly, Covid-19.
Ever since being listed in 2007, the company’s shareholders have endured a rollercoaster ride. Genedrive share price languished at just under 9p before Boris Johnson announced the first UK lockdown. The company revealed that it has supplied its COV19-ID test to a range of potential commercial partners for review and evaluation.
On November 9th, 2021, its rapid point of care Genedrive® COV19-ID Kit received CE-IVD certification under the European Communities Council Directive 98/79.
COV19-ID is compliant with European health, safety, and environmental protection standards.
Earlier in December last year, Genedrive filed for approval to sell its product in the UK. This was after new testing regulations came into effect. The Coronavirus Test Device Approvals (CTDA) regulations have put specific performance requirements on test suppliers have been put in place
The COV19-ID Kit has a 98 per cent specificity and a 98 per cent sensitivity. According to a regulatory filing in December, Genedrive says that the efficacy of the tests already meets the Medicines and Healthcare Regulatory Agency (MHRA) current requirements.
Should You Buy GDR Shares?
The nasal swap Genedrive’s test can deliver positive results in 7.5 minutes. Because negative results arrive within 17 minutes, it allows immediacy and convenience in molecular testing. Compared to the usual antigen lateral flow devices Genedrive’s test “offers several orders of magnitude improvement in sensitivity” according to CEO David Budd. Thus, the rapid results will mean a reduction in transmission rates which is something operators in the travel, leisure and hospitality space will look forward to.
Covid-19 may lead to a boost to the Genedrive share price. This is especially if deals with partners happen over the next few weeks and months. Thus, compared to peers such as Novacyt, a market cap of just £57 million certainly suggests a lot more room for growth. While the company’s GDR has surged in a few weeks, it’s still way below the 52-week high of 165p.
While the recent news coming out of the company is undoubtedly encouraging and the investors have to be cautious. Thus, Genedrive presents an amazing opportunity to investors who want to take advantage of the market’s Covid-19 concerns in 2022.
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