The contracts in the UAE and Saudi Arabia strengthen the Group's foothold in the Middle East.
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Premaitha Health (LON: NIPT) has said today it has signed "several new contracts" in the Middle East, securing deals with three additional labs in the UAE and Saudi Arabia, as well as signing new customers in the region who will send samples to the Group's own labs.
Premaitha develops prenatal diagnostic products, including testing for the risk of fetus' being affected with genetic conditions such as Down's syndrome, by testing the mother's blood rather than through invasive and risky procedures.
The Manchester-based company said the additional Middle Eastern labs will be able to process for the Group by "early 2018", adding to the three labs the Group already has partnerships with in the region.
Group CEO Dr Stephen Little commented on the expansion, saying:
"We are continuing to see growing traction across the Middle East as awareness builds of the benefits of non-invasive prenatal testing, and customers appreciate the benefits of our solution and application support. These latest laboratory contracts should begin to contribute from early 2018 once they become operational. Strategically, the Middle East is another important region in the growth and de-risking of our business through geographic diversification."
Shares in NIPT were up almost 4% off the back of the news.
Revenues for the Group began growing significantly in 2016, reporting £2.5m versus the £0.1m in 2015. This grew to £3.1m and is forecast to reach £13m and £32m in FY18 and FY19 respectively. It is also forecast to turn its first profit in FY19.
With a market cap of £24m the stock trades at a PE ratio of 41x, well above the industry median of 19x.