Verici Dx CEO & CMO take me through yesterday's positive trading update

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23rd Mar '23 by Paul Hill

12 comments 1054 reads

Following yesterday’s positive operating update from Verici Dx, CEO Sara Barrington & Chief Medical Officer Dr. Michael Donovan take me through the:

Commercial rollout of #VRCI’s 1st kidney transplant test. Start
CMO role. 01:55
Key USPs & clinical benefits of Tutivia. 03:35
Much higher accuracy (3x PPV) of test vs rivals. 08:30
Initial doctor feedback. 12:15
Significance of CLIA certificate for testing laboratory. 14:15
Update on Clarava. 16:50
Synergies from offering a suite of kidney transplant tests. 20:55
Size of the addressable market. 26:50
Cash runway & possible strategic options. 28:00
Future newsflow. 31:05

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About the Author

Paul Hill

Premium Member

12 comments

Paul Hill

24th Mar '23

Singers have a Target Price for Verici of 79p/share. Which if they're correct, means the stock could theoretically '10 bag' from 7p today.

gmtrader

24th Mar '23

I’m interested what puts you off buying these Paul?

Paul Hill

24th Mar '23

Nothing - I like Verici, albeit I already have a big overweight position (ie 20% of portfolio) in healthcare.

Harry Hindsight

24th Mar '23

Sorry Paul - my subscription to Stockopedia keeps me on the 'lets see the cash list' and market cap above 100m and flexible Stock Rank of 70+. Obvs cuts out lots of small caps but I need to retire with money not in perjury. Just saw 'sucker' stock - good on Stocko - the industry must be frustrated. Like to keep an open mind but lots of 'snake oil' salespersons out there.

Icahn School of Medicine seems an Israeli link (duh) - no probs - great tech innovation bio and defence cutting edge disruptors but the G in ESG is sniffy IMO.

Carrying too many losses from 2021 - EKF Diagnostics Holdings (LON:EKF) MTI Wireless Edge (LON:MWE) and liked SRT Marine Systems (LON:SRT) etc.

Hope they do well and move up into a profit. Good luck and wind in your sails.

Paul Hill

25th Mar '23

Thanks Harry - FYI, I'm positive on EKF at current levels, but haven't yet pulled the trigger

gmtrader

27th Mar '23

Paul, did Justin just buy into these this morning?

Paul Hill

27th Mar '23

Apologies - No idea Gmtrader. Albeit #VRCI does look materially undervalued to me

Paul Hill

28th Mar '23

Anyone know the reason for the 93% jump in Verici's shares yesterday - albeit from admittedly way oversold levels?

gmtrader

28th Mar '23

I’m guessing because of the very low liquidity. It slowly moved down in price over months on very low volume. Then yesterday there became a buyer and quite a few £10k trades went through which moved it to about 50% up. Pis noticed and started to pile in. Even at current price it is still a multi bagger if it gets to the broker target. I think that Sarah Barrington saying that cash should last at least 14 months has reassured investor a little that no cash raise will be needed in the next 12 months. She also mentioned the company would be in a very different place by end of the year. A little cryptic but sounded positive.
As you said, way undervalued. Market often over does this and I’d guess the bottom has been found now.

gmtrader

28th Mar '23

Better ask Justin if it was him with the £10k buys lol

gmtrader

28th Mar '23

I was buying Verici Dx (LON:VRCI) at 7p and found liquidity very poor. Literally only able to buy £1k at a time without it going to nt.

Even if you only look at the test Tutivia, which is in the commercialisation process, it is undervalued. It is a game changer for the industry as kidney transplants are the biggest transplants done by far and it is only going to get bigger, even ignoring the fact that the world population is increasing. There is also far too many people on a waiting list for kidney transplants. So to be able to do earlier tests that are more advanced than current tests will decrease the rejection levels which is critical in saving lives and not wasting kidneys.

Then when you add in the other test products, Clarava and Protega that VRCI are working on the chances of a multi bagger is pretty good. If all goes well then VRCI will grow for many years. There is a big chance imo the company will be bought out. Broker has a target of 69p, which is likely to be a conservative short term target. From 7p I'm looking at a 10 bagger but it may be one of those I just hold for years. Obviously it is high risk and therefore my holding is a low percentage of PF but with such high multiples possible I don't need to invest a lot for a chance of a high return. With the liquidity low, it is possible it could well over shoot as it has done on the way down.

Volume has been drying up since June and has only increased in the last month with yesterdays volume the highest it has ever been. Sp has broken above the 50 day ma and has hit some minor resistance. If buys continue this week then there is minor resistance at 26p but will likely march onto the 40p resistance level.

Paul Hill

28th Mar '23

Massive thanks gmtrader for the insights/comments - top job mate

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Verici Dx CEO & CMO take me through yesterday's positive trading update

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About the Author

Paul Hill

12 comments

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