Tyneside pharmaceutical firm Immunodiagnostic Systems has seen revenues rise following its £110m takeover by US life sciences group Revvity two years ago.
The Boldon firm, which employs 55 people and specialises in the development, manufacture, and marketing of diagnostic tests to the clinical laboratory market, has posted its first full set of results, for the year to January 1, 2023, since the takeover. The accounts show a 57 per cent rise in revenue from £16.8m in the 40 weeks to January 1 2022 to £26.7m. Gross profit margin also increased by 8.4 per cent from the prior period to 23.7% as the business returned to pre-covid trading conditions.
The company’s operating loss narrowed to £1.5m, down from a £3m loss in the prior 40 weeks. This was tempered by receiving more than £10m from shares in group undertakings, resulting in a return to a pre-tax profit of £8.7m.
The firm said in a statement alongside the accounts: “As the in-vitro diagnostic market develops there is the possibility of increasing competition from larger companies with greater financial and other resources than those directly available to the company. The directors are aware of this and are focused on developing niche products in areas not likely to be targeted by the major international players.
“The company believes that having the most comprehensive panel of bone, growth, hypertension and fertility markers will generate a significant competitive advantage. Our research and development programme continues to concentrate on the introduction of new analytes as well as developing our existing clinical range of markers onto the IDS-iSYS system.
“The company exists in a global, competitive environment with a changing technological landscape. The decline in both the manual and automated 25-OH Vitamin D market has continued to adversely impact financial performance, however the impact of this is less significant each period as we have sought to diversify our product range.
“In recent years the company has launched a significant number of new products, both through in-house development and through collaborations with third parties such as Technogenetics srl. We will continue to do this, to further broaden the menu of tests.”
