>>October 13th VOX Podcast
Altijd interessant wanneer mijn gedachten worden verwoord geurende een podcast :-)
Justin: Did you see Pfizer has halted their vaccine study? I guess we need some good news to lift the market. We were talking about testing earlier and Novacyt. Testing, testing, testing even after vaccines there will be lots of testing. Remember a couple of weeks back we were talking about how the Department of Health contract didn’t push the Novacyt share price up higher? But it’s moved now hasn’t it, it’s gone!
Vadim: Yes it’s gone, all the way up to 9 pounds I think, maybe down a little now to 8 or 7.50. But it’s good to see that rally because that made no sense. It was probably because people probably couldn’t comprehend the size of the contract. To be fair to everybody it was an enormous contract. 250 million and that was just the first 300 machines and it has the potential of reloading, for another 700 machines after this.. so [laughs] this could become a much, much bigger contract.
Justin: And that’s just in the UK, they are supplying testing kits around the world aren’t they?
Vadim: Absolutely. If they got the second part of the contract triggered, I wouldn’t be surprised if this became a billion pound company. It’s currently at around 600 million, yes, a 600 million market cap company, and this second contract is bigger than the first. The first contract is secure, they’re rolling it out now. The second you know could be much, much bigger. Only good things to come there. Now we do hope, for society’s sake we will hear good vaccine news at some point, and I think that will take the heat out of some covid stocks. Novacyt I think is one that is just motoring along all the way up to that point, and way beyond that point, because they’re actually delivering tests in huge volumes.
Nothing really in the short term is going to change that in my opinion. Where things may have an impact on volumes is in the rollout of vaccines, and we’re still going to need to test all the way through multiple vaccines. We need to know where the virus is. We’re talking well into 2021 and beyond. I wouldn’t be worried about Novacyt, but I think you are right in that vaccine rollouts will change the dynamics on testing discussions around covid. We’re talking about other testing stocks on AIM, and there’s a lot of heat in those stocks, and they haven’t even sold tests yet… their share prices are.. quite hefty in some instances right? There is some risk here around some of the other diagnostic players, but with Novacyt I think you’ll probably hear more positive news on further tests and orders which will drive the share price higher [laughs]. It is a distinct diagnostic player amongst its peers on AIM.
Justin: Yes, they are banking the money, that’s the thing and no matter what happens, they’ve got truck loads of cash.