In my last article I outlined why Oxford BioDynamics could offer an incredible turn-around opportunity, you can read the article here

Essentially,  the article explains that whilst OBD have a number of market leading tests that can be sold into the marke-place right now, the company had no strategy to scale out the distribution and sales of such tests, focusing instead on direct sales which volume-wise would not cover the running costs of the business.  

This has lead to a low point in the share price and a very real risk the company would become insolvent and de-list.

However...

The recent appointment of Iain Ross as Chairman of the company is starting to reap benefits in that the company have since announced two distribution/sales partnerships that could mark the turn-around. 

12th Feb 2025 - Oxford BioDynamics partners with Regina Maria to offer EpiSwitch clinical tests in Romania

The company and Regina Maria Private Health Network, the leading medical services provider in Romania, have signed a distribution agreement to give patients in Romania access to OBD's clinical EpiSwitch PSE (EpiSwitch Prostate Screening) and EpiSwitch CiRT (Checkpoint inhibitor Response Test) blood tests.

Regina Maria is the largest private healthcare provider in Romania, serving 5 million patients so that's two OBD tests with a large distribution reach.  We'll not know how lucrative this is until we see future trading updates but it looks like a significant deal and pathes the way for other Global deals that could also come to the table.

13th March 2025 - Bupa UK insurance to cover Oxford BioDynamics' EpiSwitch® PSE prostate cancer test

Bupa is a leading health insurer in the UK with around 3.9M customers.  Bupa UK insurance customers with a raised PSA level and no additional high risk factors or symptoms will now be covered for PSE, a smart blood test which accurately predicts the presence or absence of prostate cancer.

This is again, another important deal for the company and not only does this impact positively on sales, this is a huge rubber stamp for the PSE test.

So in little over a month the company have deployed their market-leading PSE test into a market-place of c.9M customers in size but this could be the tip of the iceberg in that the test could easily be rolled out accross other European countries and of course the US where OBD have a developing presence (a huge market!).

For balance, lets be under no illusion though, the company has significant cash burn on a monthly basis, by my estimates, the last raise should see them covered cash-wise until around Q4 this year.  Thankfully, that's a decent amount of time for the company to re-focus its strategy and ink further deals.

Iain has been quite clear from the outset of his appointment, that the company will be focusing on distribution deals and partnerships, in fact it has too!  

My personal thoughts on the subject are that the company will secure a partnership with another Pharma entity (perhaps giving away a 'slice of the pie', that would ideally see a cash injection into OBD that will push the cash-runway out further and possibly negate the need for any further raises and allow the business to focus on further deals/partnerships for its array of market-leading tests already in a commercial roll-out state with others in development.  

So the investment thesis here right now is that the company, secure more deals and partnerships, easing the cash position and increasing sales, and with two deals announced in the last month they are firmly on the right track.  In addition, the company Market Cap right now is some c.£10M probably with an EV or around £3M.  That's incredibly low for the IP and assets the company has.

This is a real RvR play where you could see your investment zero or, if they execute, could see your investment 100x and trade back to the previous highs of 100p per share four years ago.  As always manage your risk !