Goodbody Health Inc. (AQSE:GDBY) is the topic of conversation when Arden Partners‘ Head of Research Andrew Simms caught up with DirectorsTalk for an exclusive interview.
Q1: How do you see the company in terms of an investment?
A1: Goodbody Health is embarking on an exciting strategy to penetrate the independent pharmacy market with blood and wellness testing services, building on the successful roll-out of Goodbody’s COVID testing services. The Group’s momentum, connectivity with the pharmacy market, ambitious targets and structural and thematic tailwinds bode well for the opportunity that investors can access through the stock.
Q2: What are some of the underlying factors increasing demand for the company’s diagnostic services?
A2: Their testing strategy aligns very well with a number of structural factors. Traditional community health services and hospitals have capacity constraints in trying to offer blood testing services and the NHS long term plan aims to rely on independent pharmacies to help offer community healthcare and prevention. The Independent pharmacy sector has been struggling financially with over 90% of revenue coming from the NHS and therefore there is a need to diversify revenue streams to maintain financial viability of the pharmacies. As well as the push of new services from these factors, the public are increasingly aware of the need to monitor wellness, both as a preventative measure but also as part of a broader theme to focus on health and wellbeing. This is already showing a level of demand pull from the public which supports momentum in the Goodbody Health strategy roll-out
Q3: What’s the forecast and outlook for the company?
A3: Following a strong second half of 2021, driven by COVID testing, the Group is expected to transition to blood and wellness testing through 2022 with ambitious targets to reach 1,000 points of care by the end of 2021. Connectivity to the pharmacy market place and key structural drivers underpin this acceleration and are reflected in a jump to forecast profitability in 2022.
Q4: What should investors look out for in terms of catalysts?
A4: The fast roll-out of the testing services to the pharmacy network and the marketing of the services will be key drivers for the Group and investors should look out for updates on the progress of the roll-out and the penetration of the blood testing services through the network. The Group is ambitious and is expected to provide good news flow and catalysts for investors to align to.
Goodbody Health Group Inc. is listed on the Canadian Securities Exchange (CSE), the Aquis Stock Exchange – Growth Market (AQSE) Apex segment, OTC Pink, and Frankfurt Stock Exchange (FSE), providing current and prospective shareholders with multiple platforms in which to buy and sell Goodbody Health Group Inc. stock under the EPIC codes: CSE: GDBY / AQSE: GDBY / FRA: 484 / OTC: SCNNF. Retail customers can trade via online brokers AJ Bell, Jarvis Investment Management, Interactive Investor and The Share Centre, alongside the extensive range of telephone broking service providers.
