DeepVerge continues to ramp up progress across business divisions
What it does
DeepVerge PLC (LON:DVRG), is a vertically integrated business, collaborating technology platforms with partners in AI, clinical research, medical device, life science and environmental science. These collaborators are building their own technology on top of the Labskin AI backbone.
Labskin allows skin-care, health-care, pharmaceutical manufacturers and cosmetic companies to test their products on human-like skin in a real-world environment with full access to multiple state-of-the-art partner technologies.
Microtox BT system is a rapid coronavirus test that gives a result in under 60 seconds.
How it’s doing
DeepVerge confirmed its first profitable quarter as well as highlighting a 300% increase in revenues for 2020.
The AIM-listed environmental and life science artificial intelligence (AI) company said in a year-end trading update for 2020 that strong sales in the fourth quarter had delivered its first EBITDA profitable three-month period, while revenues for the whole year rose to £4.4mln from £1.02mln in 2019.
In March, the group also released initial results from phase III clinical studies of Microtox BT, a rapid Coronavirus (COVID-19) breath test. The results showed it can deliver results in under 60 seconds.
Brandon described the early data from the real-world assessment of the Microtox BT system as a “major milestone”.
Researchers found the average virus breath condensate sample provided a nine-times higher signal than the control group when assessed using a specially developed nano-chip for detection.
DeepVerge said further data was required to confirm the same high sensitivity and specificity is achieved on breath test clinical trials, which are underway.
The UK Target Product Profile (TPP) for a rapid breath test requires 150 confirmed positive samples and 250 ‘negatives’.
What the broker says: Turner Pope on Microtox BT
“Although additional supervised breath test clinical trials from a larger group of patients now need to be completed, Deepverge’s management consider these will provide sufficient data to meet the ‘desired’ and ‘acceptable’ criteria specified in the UK Target Product Profile (‘TPP’) that should, in turn, enable the product to secure its CE marking followed by a broad roll-out for COVID-19 (and other pathogen) breath tests which might be expected before the end of 2021.”
What the boss says: chief executive Gerry Brandon
“Despite COVID-19, DeepVerge has had yet another strong year of 300%+ revenue growth, topped off with our first profitable quarter. The Group’s business has evolved into two distinct but inter-linked business divisions, Labskin’s life science offering and, following the acquisition of Modern Water in November 2020, a world-leading environmental health solution, underpinned by our AI as a service expertise.”
“The newly combined global footprint has extended Labskin’s reach into the US, China and Japan, directly next to many of our largest clients. Group sales, including recurring revenues, look set to continue strong growth as our order book of existing and new clients expands across the US, Asia and Europe.”