Savvy investors appeared to pounce on a sudden dip in the Omega Diagnostics (LON: ODX) share price following an interview with CEO Colin King.
With the share price of Omega Diagnostics at 97p prior to the interview, it soon fell to as low as 77p during the interview before recovering to 92p – netting investors who bought on the dip a 20 percent paper gain in minutes.
While the interview with Colin King and Vox Markets appeared to just confirm much of what was already known, it appeared that some investors (and traders) conducted a mass sell-off as it was implied that big news was unlikely this week.
Here’s the key points to take-away from the meeting:
- Omega Diagnostics is looking how to go beyond its capacity goal of 500,000 COVID-19 tests per week and reach in excess of 1 million.
- MHRA approval process is taking longer than expected on the antibody test and it depends on what questions may come back. It is in progress.
- It is very close to finalising its agreement with the UK RTC over the rapid COVID-19 antibody test. Once complete it will also be in a position to commercialise the test outside of the UK.
- Mologic is showing good positive signs. Its trials with Heathrow for its antigen test were positive and it will need to do some further evaluations before hopefully starting the technical transfer to Omega Diagnostics. Colin also confirmed they have had very early talks with Avacta.
- The timeline for the majority of the key COVID-19 tests that Omega Diagnostics is working on is Christmas, if not early new year for commercialisation.
- Expecting to generate £80-100m of revenues in the next 5 years excluding COVID-19. Would not be happy with a mere doubling of current revenues over this period.