Biocortis focuses on America

Given Biocartis’ potential, all relevant experience in the US market is welcome to turn profitability as soon as possible.

With the appointment of Roger Moody as CEO, Biocartis is clearly shifting its strategic direction to the US. Three of the seven board members, including Moody, will soon be U.S. citizens. Moody has extensive experience scaling metech companies, attracting US investors and preparing for a sale to a large company. Biocortis already had approval for ImmuneExpress’ Septicide Rapid Infection test, but in February it won an important first-time FDA approval for an oncology test (MSI against colon cancer). It complements the broad ‘research use only’ menu of oncology tests that Biocortis already distributes to major cancer centers in the US. With FDA approval, the test can be sold to all laboratories without restriction. ImmuneExpress will receive US approval for an EDTA version of Septicide Rapid this year. In 2023, the Idylla IDH1-2 cancer trial based on the new FLEX technology was launched in February and will be rolled out worldwide after a pilot phase.

The first quarter figures were not appreciated. Product turnover increased by 2 percent to 10.8 million euros, of which 8 million euros came from the sale of oncology cartridges (+16%). Gross margin was up 37 percent (34% in 2022) and operating cash flow (EBITDA) improved 12 percent to -8.4 million. Annual expectations are product turnover of 55 to 60 million euros (+25 to 35%), gross margin of 40 to 45 percent and improvement of EBITDA from 8.5 to 11.5 million to -25 to -28 million. Three Idylla versions of partner tests will launch this year: a breast cancer test from Life Arc, a new version of a skin cancer test from SkylineDX and a thyroid cancer test from GeneproDX.

Conclusion

The stock responded favorably to the strategic adjustment, but pulled back after the quarterly update. Given the potential, all relevant experience in the US market is welcome to turn a profit as soon as possible. Worth buying for the risk conscious investor.

Advice: Worth buying

danger: High

Assessment: 1C

Course: 0.63 Euros

ticker: PCRD PP

ISIN code: BE0974281132

market: Euronext Brussels

Stock market capitalization: 58.9 million Euros

Q/w 2022:-

Expected Q/W 2023:-

The exchange rate differential is 12 months: -66%

Exchange rate difference since the beginning of the year: +14%

Dividend yield:-