Concepta acquires home-use testing company, The Genome Store
The personalised healthcare company highlighted to investors that the initial consideration comprises £0.28m to be paid upon completion, along with a deferred consideration element of up to £0.24m, subject to agreed performance milestones being met.
Concepta believes the acquisition will deliver one of its key strategic areas of focus - growing its product portfolio into other areas of personalised health and female health products.
Manchester Science Park-based The Genome Store has developed several genomic/DNA tests covering a range of female and male wellness, food intolerance and lifestyle testing.
A sample can be taken at home using oral or nasal collection swabs which are then sent via free postage for processing using established lab-based DNA and RNA detection methods.
The genomic testing service provides a complementary portfolio of products to Concepta's personalised fertility tracker, with more women’s health testing products being developed.
An initial portfolio of tests will be launched in Q420, with a pipeline of further tests to be commercialised from 1Q21. The Company detailed that the service is expected to be rebranded under Concepta ownership and the portfolio launched under a new brand.
The company said the acquisition will provide it with a compliant laboratory set up, high throughput testing capacity and further revenue streams from ‘a scalable business model.’
Concepta is now able to offer its customers a wider range of healthcare products including an efficient, accurate and cost-effective genomic testing service, granting them control of their own health and access to ‘highly personalised testing from the comfort of their own home.’
Concepta has highlighted the benefits of DNA testing as ‘a non-invasive, highly accurate testing method’ that can interpret the ‘blueprint’ of genes rather than a snapshot. This means the customer can make decisions on their health based on their genetic makeup.
As a result of the ongoing COVID-19 pandemic, at-home testing space has been revolutionised and consumer behaviour impacted, CPT noted. It said its broader portfolio will provide commercial opportunities in line with this new found growth within the sector.
According to Deloitte in their Health Solutions 2020 Survey of Health Care Consumers, customer behaviour has evolved since pre-COVID, where consumers were most comfortable using at home tests for diagnosing infections.
Behaviour has changed significantly since COVID-19 - Deloitte stated that around 30% - 50% of consumers are now comfortable using at home testing for a variety of healthcare reasons.
"Through our close work with our MYLO customer base throughout 2020, we have understood first-hand our customers' needs for affordable, connected, convenient health testing,” said Penny McCormick, Chief Executive Officer of Concepta.
She commented, “The shift in mindset throughout 2020 has accelerated not only the acceptance of remote healthcare, but the expectation of it and desire for it.”
McCormick added that the acquisition will provide the Company with a platform to unlock its potential “to develop an exciting portfolio of at-home tests that supports families as they increasingly seek to take care of their own wellbeing from their own home.”
Shares in Concepta have traded within a tight range of 0.8p and 1p over the past two weeks to open 19.44% higher this morning at 1.08p following the announcement.
CPT price chartReasons to Follow Concepta
Concepta is a UK healthcare company that has developed proprietary products and platforms, which targets the personalised mobile health market. Concepta said its products will initially address the specific needs of women with fertility issues, in particular unexplained infertility.
Fully Funded Development
Its 1H20 results published in September 2020 highlighted that additional funds were being channelled into product and commercial development of its home-use personalised fertility tracking and pregnancy self-testing system relaunched under the MYLO® brand.
Progress to Commercialisation
Whilst the focus during the period was one of ‘reorganisation and recapitalisation’ of the business, the company detailed that the opportunity within the pre-IVF space was ‘clear’.
‘The proposition of MYLO® is to empower women to better understand their hormone levels and menstrual cycle and help women conceive naturally by identifying their precise and personal window of fertility and optimal time for conception.’
During the period, the Company successfully completed the commercial launch of MYLO® brand with digital marketing campaigns and full optimised search engine strategy to drive UK commercial sales with over 4,000 App downloads achieved during the period.
Portfolio Expansion into Adjacent Areas of Personalised Health
Concepta said that whilst its current focus remains on accelerating UK sales growth, it’s also plans on expanding into new markets, widening its portfolio to include a broader mix of female health and personalised healthcare products.
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