Yourgene Health plc
(“Yourgene” or the “Group” or the “Company”)
Full year Trading update
10% year-on-year revenue growth
Manchester, UK – 29 April 2021: Yourgene (AIM: YGEN), a leading international molecular diagnostics group, announces a trading update for the financial year ended 31 March 2021 (“FY 2021”).
Yourgene reports unaudited revenues for FY 2021 of £18.3m (FY 2020: £16.6m), up 10% compared to the previous year. This is in line with recently issued guidance and reflects strong performances for European core revenues and for COVID-related testing products and services focused on the UK, more than offsetting the pandemic headwinds affecting international sales as previously outlined in our trading update issued on 8 February 2021.
Non-invasive prenatal testing (NIPT) performed strongly in Europe (+38% year-on-year) reflecting a full year’s benefit from the acquisition of the Company’s French distribution business in March 2020. International NIPT revenues continue to be affected by pandemic-related travel and supply restrictions, delays in US market penetration and diversion of health budgets in some countries to more pressing matters. While we are hopeful of a return to more normalized trading patterns in the most affected international NIPT markets, clearly the timing of pandemic recovery is very different from country to country.
Molecular Genetics revenues grew 26% year-on-year. These are a composite of research services, the size selection technology acquired with Coastal Genomics in August 2020, and also revenues from the Company’s DPYD chemotoxicity PCR test which represented over 14,000 chemotherapy interventions in the reporting period.
Revenues from COVID-19 testing services in the UK and the Company’s Clarigene® SARS-CoV-2 PCR test contributed £3.2m to the reporting period, acting as a robust hedge against pandemic impacts elsewhere. The most recent extended UK lockdown undoubtedly dampened the potential contribution from this area, however Yourgene is well placed to exploit a number of opportunities in this space. In the last two months the Group has entered into partnerships to supply COVID-19 PCR testing services alongside Newcastle Premier Health Limited to Leeds Bradford Airport, and with MyHealthChecked plc to support their consumer partnership with Boots UK Limited. Most recently the Company announced successful tenders for the UK’s National Microbiology Framework, one of only three companies to have been successful in all four lots of the Framework. These wins demonstrate the high quality and credibility of Yourgene’s accredited lab-based COVID testing services and SARS-CoV-2 assay, which are a product of the investment made over the last 12 months to establish this as a growth element within the Group.
Revenues by region | Unaudited data, £m |
| |
| 2021 | 2020 | Change |
UK | 5.4 | 2.0 | +174% |
Europe | 5.5 | 4.1 | +33% |
International | 7.4 | 10.5 | -30% |
Total | 18.3 | 16.6 | +10% |
Revenues by product
NIPT | 7.8 | 10.0 | -22% |
Reproductive Health | 3.6 | 3.6 | -2% |
Molecular Genetics | 3.7 | 3.0 | +26% |
COVID-related revenues | 3.2 | – | n/a |
Total | 18.3 | 16.6 | +10% |
M&A Update
The Group’s 2020 acquisitions of its French distribution business and of Coastal Genomics in Canada have all integrated well and met their post-completion earn-out targets to date. In line with our strategy, they are all contributing to a broader-based, more resilient business with strong potential growth drivers.
Outlook
Recent senior hires in the US and in Europe and a more locally aligned commercial organization mean that the Group is well set up to drive further growth in the core business, even with continuing travel restrictions until full international mobility restarts. Yourgene’s Clarigene® SARS-CoV-2 test continues to meet stringent PHE quality criteria and the Group’s testing services and product sales remain focused on the UK market. We continue to assess suitable opportunities to expand these services selectively outside the UK, given the greater price sensitivity in other markets. Guidance for the new financial year remains unchanged at this time, with revenues expected to be in excess of £25m.
Lyn Rees, Chief Executive Officer of Yourgene, commented: “The business has performed well in delivering double digit growth in the most challenging set of market dynamics. It is pleasing to see NIPT growth in Europe and the continued acceptance and growth of DPYD testing across our customer base. Whilst recruiting and onboarding new customers continues to be a longer process than in pre-pandemic times, our more localised sales organisation is well placed to convert a strong pipeline of opportunities for the year ahead.”
This announcement contains inside information for the purposes of the UK Market Abuse Regulation.
The Directors of the Company take responsibility for this announcement.
Yourgene Health plc Lyn Rees, Chief Executive Officer | Tel: +44 (0)161 669 8122 |
Cairn Financial Advisers LLP (NOMAD) | Tel: +44 (0)20 7213 0880 |
N+1 Singer (Joint Corporate Broker) | Tel: +44 (0)20 7496 3000 |
Stifel Nicolaus Europe Limited (Joint Corporate Broker) Nicholas Moore / Matthew Blawat / Ben Maddison | Tel: +44 (0)20 7710 7600 |
Walbrook PR Ltd (Media and Investor Relations) Paul McManus / Lianne Cawthorne | Tel: +44 (0)20 7933 8780 or yourgene@walbrookpr.com Mob: 07980 541 893 Mob: 07584 391 303 |
About Yourgene Health
Yourgene Health is an international molecular diagnostics group which develops and commercialises genetic products and services. The group works in partnership with global leaders in DNA technology to advance diagnostic science.
Yourgene primarily develops, manufactures, and commercialises simple and accurate molecular diagnostic solutions, for reproductive health, precision medicine and now infectious diseases. The Group’s flagship products include non-invasive prenatal tests (NIPT) for Down’s Syndrome and other genetic disorders, Cystic Fibrosis screening tests, invasive rapid aneuploidy tests, and a recent extension into the oncology space with DPYD genotyping.
The launch of Yourgene Genomic Services has enabled Yourgene to offer a global laboratory service network equipped to be a full life-cycle partner for clinical, research and pharmaceutical organisations to support partners at the preclinical, clinical, and post-market stages to develop, manufacture, obtain regulatory approval and commercialise new products and services. In addition, Yourgene Genomic Services offers an NIPT and high throughput COVID testing service.
In August 2020, Yourgene acquired Coastal Genomics, Inc., a sample preparation technology company based in Vancouver, Canada, enabling the Company to extend its offering and IP portfolio in the DNA sample preparation sector. The acquisition increased Yourgene’s geographical penetration into the US and Canada, supplementing existing coverage in the UK, Europe, MEA and Asia.
Yourgene Health is headquartered in Manchester, UK with offices in Taipei, Singapore, the US and Canada, and is listed on the London Stock Exchange’s AIM market under the ticker “YGEN”. For more information, visit www.yourgene-health.com and follow us on twitter @Yourgene_Health.
