GENinCode lowers outlook, shares slide

(Sharecast News) - GENinCode warned on revenues on Tuesday, sending shares in the AIM-listed predictive genetics specialist sliding. The firm, a specialist in preventing cardiovascular disease and the risk of ovarian cancer, said that while it still expected "good" year-on-year sales growth, revenues were now likely to come in around £3.3m, below expectations.

It blamed the lowered guidance on slower-than-expected growth in the NHS, due to strategic, organisational and funding changes across the health service.

Further hitting revenues was a delay in securing approval from the US Food and Drug Administration for the firm's Cardio inCode-Score test.

As at noon BST, shares in GENinCode were down 10% at 3.8p.

The update came as GENinCode posted a 15% jump in first-half revenues, to £1.6m. Adjusted losses were largely flat at £2.07m, compared to £2.05m a year previously.

Matthew Walls, chief executive, said: "The first half saw increased revenues across our core markets, and progress with the FDA regulatory pathway for Cardio inCode-Score to accelerate future sales growth.

"However, funding uncertainty in the NHS and the additional further information required by the FDA means that full-year revenues will be lower-than-expected, albeit a significant increase on the prior year.

"We continue to expand our commercial relationships across Europe, while increasing our profit and presence in the US and maintaining a tight operational cost control."

Oxford-based GENinCode was founded by chief operations officer Jordi Puig in 2018.