BARD1 Life Sciences Ltd

BD1 Details

BARD1 Life Sciences Ltd (ASX: BD1) is one of the leading medical diagnostics companies in Australia with a focus on the development and commercialisation of diagnostic solutions for health care professionals and patients. 

H1FY21 Results Performance (For the Half Year Ended 31 December 2020):

BD1 has generated revenue of $148,150 in H1FY21 owing to the product revenues for the Htert test from the date of the merger. An increase in employee and contractor expenses led to a rise in operating expenditure to $1,577,636 from $564,512 in the same period last year. The company has posted a net loss of $3.25 million for the period. The liquidity position remained healthy with a solid cash position of $7.3 million on 31 December 2020.

Consolidated Comprehensive Income Statement (Source: Company Reports)

Business Update for The Quarter Ended 31 March 2021:

Lower routine pathology due to the impact of COVID-19 continued to hurt ‘in-market’ product hTERT revenue. It has obtained hTERT registration in South Korea with the first order of $80,000. It is going as per plan with the commercial launch of RUO1 EXO-NET™ product in Q2 CY2021. During the period, it has received US patent approval for NETs technology covering EXO-NET™ product. It has also bagged Australian patent approval covering hTERT assay. Besides, BD1 has recorded a cash balance of $6.0 million as of 31 March 2021.

Key Risks:

The company is exposed to broader risks like the uncertainty of patent protection and other proprietary rights as well as risks of receiving of requisite regulatory authority approvals.  Further, risk triggered by the swift advancements in technology also remains a concern. Additionally, it is exposed to risks associated with the development of medical devices including diagnostics to a marketable stage.

Outlook:

The company is witnessing a certain recovery in demand and a focused strategy on high-volume customers in the USA is expected to boost hTERT revenues in FY2022. Further, the company is progressing well with the commercialisation of BARD1’s diagnostic pipeline as the discussions with potential partners is in the advanced stage. The achieving of Class II IVD registration for hTERT from South Korea’s Ministry of Food and Drug Safety on 12 March 2021 has paved the way for the company to launch hTERT in the South Korean market. It has also led to a commitment from its exclusive distributor, Mirax Corporation, for an initial order worth A$80,000.

Stock Recommendation:

BD1 has made substantial development across its BARD1 autoantibody (AAb), SubB2M, NETs, and hTERT programs during the March 2021 quarter. BD1, on 24 May 2021, announced the filing of two new provisional patent applications with IP Australia to protect the expanded uses of its EXO-NET and SubB2M technologies.

The company’s stock has witnessed an increase of ~130% in 1 year and ~146.4% in 9 months. It has made a 52-week low and high of $0.570 and $5.600, respectively. In a sharp up move, the stock surged from $0.54 level to $5.61. However, it failed to build on the positive momentum and fell from there. It has been trading in a down trend with lower-high and lower-low, experiencing a lower volatility. For the ongoing week, the stock has given a softer close at $2.07. The technical indicator RSI with a reading around 46 and a curve at the end pointing down, suggests neutral to weak momentum. Going forward, the stock may have resistance around the 61.8% retracement level of $2.50 whereas support could be around the converging point of the lower Bollinger band and the previous low of $0.54. Thus, considering the stock performance, continued net loss in H1FY21, and the associated business risks, we advise the investors to book profits. We give a “Sell” rating on the stock at the current market price of A$2.070 per share, up by 0.485% on 2^nd June 2021.

Weekly Technical Price Chart:

Source: REFINITIV

Note: The purple color line in the chart shows RSI (14-period) and the white color line represents the trend line. The upper 2 yellow color lines denotes Resistance 1 and Resistance 2, while the lower 2 yellow color lines denote support 1 and support 2.

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided.

Technical Indicators Defined:

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest. 

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV

Note 2: Investment decisions should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided.

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