MyHealthChecked PLC (LON: MHC) shares fell 19.3% after releasing its H1 2021 results, where it reported a loss of £199,670 compared to the -£1,171,359 loss reported in a similar period.
Investors disregarded the lower losses as the home-testing healthcare company’s shares fell heavily at the open in what can be termed as a market overreaction given the report’s positive highlights.
For instance, MHC signed two new commercial contracts with Boots UK Limited to supply COVID-19 PCR test kits and complimentary laboratory services.
The company also won a new contract with AAH Pharmaceuticals Limited (Lloyds Pharmacy) to supply COVID-19 PCR test kits and complimentary laboratory services.
Furthermore, MyHealthChecked reported strong trading results in Q3, having generated £8.5 million in revenues and being on track to generate at least £1.4 million in gross profits, yet its shares still sold off heavily.
MHC generated £3,274,145 in revenues during the six months compared to £12,707 in a similar period last year. Finally, the company had £2,214,496 in cash as of 30 June 2021 after raising £3.4 million via a share placement in February 2021.
MyHealthChecked shares have fallen heavily from the April 12 high of 7.44p despite excellent fundamentals. Investors keep anticipating falling demand for its PCR test kits as the UK and global COVID-19 vaccination rates keep rising.
The company recently reassured investors that it expects demand for its PCR test kits to remain high despite the Briitish government’s recent changes to the OCOVID-19 testing associated with international travel.
Only time will tell whether MHC shares can rally back up to their past highs in future.
*This is not investment advice.
MyHealthChecked share price.
MyHealthChecked shares plunged 19.31% to trade at 2.34p, falling from Tuesday’s closing price of 2.90p.
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