MyHealthChecked Faces Decline in Revenue Amid Decreased Demand for Covid-19 Test Kits

MyHealthChecked, a health-testing provider, has experienced a significant drop in its shares, reaching their lowest level in over three years. The company attributes this decline to the decrease in demand for its Covid-19 lateral flow test kits designed for at-home use.

As of 0742 GMT, shares have plummeted by 29%, equivalent to 4.5 pence, bringing the price down to 11 pence. Earlier in the session, the shares fell as low as 10.22 pence, the lowest price recorded since March 2020.

For the six months ending on June 30, MyHealthChecked reported a total revenue of £2.5 million ($3.2 million), notably lower than the £9.8 million generated during the same period the previous year.

Although there is an overall decline in demand anticipated for the entire year, the London-listed group has indicated a rise in testing volumes during the second half of July. The company also mentions the emergence of an "Eris" strain and speculations about a potential increase in Covid-19 cases during the fall and winter seasons.

Despite the expected decline in demand for Covid-19 testing, MyHealthChecked remains confident in its ability to execute its plan by 2023. This confidence is based on the established distribution partnership with Boots and the nationwide launch of an expanded portfolio of at-home wellness tests.

At the end of June 30, the company reported holding £5.0 million in cash.