Inqo Investments Limited Investment in Medical Diagnostech (Pty) Ltd (8880I)
December 14 2015 - 1:00AM
UK Regulatory
TIDMINQO
RNS Number : 8880I
Inqo Investments Limited
14 December 2015
(ISDX: INQO)
INQO INVESTMENTS LIMITED
14 December 2015
Inqo Investments Ltd, the ISDX-listed ('INQO') social impact
investment company today announced an investment in Medical
Diagnostech, a South African-based manufacturer of rapid
point-of-care diagnostic tests.
Medical Diagnostech (Pty) Ltd (MD) manufactures rapid
point-of-care (POC) tests for HIV/AIDS, malaria, drugs of abuse and
pregnancy (www.medi-tech.co.za). MD has built a good reputation as
a local manufacturer of these rapid test kits to wholesale agents
and distributors. The business had a turnover of R5,435,947 and a
net profit of R506,158 for the financial year ending 28 February
2015.
The annual global rapid POC diagnostic kit market is estimated
to be around $19 billion (2014) with strong growth in the African
markets. The South African Department of Health's contract for
HIV/AIDS rapid POC tests is approximately R120 million per year.
Rapid POC test kits have become a vital part of the diagnostics
industry to enable early detection of infectious diseases. Early
detection has substantial cost saving benefits and enables rapid
precautionary or preventive actions. However, most of these tests
are imported and MD represents an opportunity for import
substitution and to grow an African manufacturer.
South Africa has one of the highest HIV/AIDS infections in the
world with more than 1,000 new infections and AIDS-related deaths a
day. A reported four million people in the country are infected
with HIV/AIDS. Substance abuse in South Africa is twice the global
average with one in three adults being regular users and one of the
main causes of suicides and accidents in the country. The highest
users of substance abuse are youths. South Africa has also been
plagued by some of the highest teen pregnancies in the world with
one in three girls giving birth by the age of 20. Public clinics
and hospitals do not have the capacity to test these young girls
regularly. Rapid POC test kits bought Over-the-Counter have become
a useful solution to reduce the workloads at clinics and
hospitals.
Malaria infections on the African continent have decreased over
the last decade but children remain the most vulnerable. Rapid POC
tests can detect the disease early and reduce fatalities. The World
Health Organisation reported mortality of 584,000 people from
malaria in 2014 with 90% from Sub-Saharan Africa and 78% being
children under the age of five.
Inqo's initial investment of R500,000 will allow the company to
file for international accreditation from the World Health
Organisation (WHO), European Union CE Mark and Nigeria's National
Agency for Food and Drug Administration and Control (NAFDAC) to
enable them to tender for government and donor-funded contracts.
Inqo is in discussion with MD to upgrade and expand its production
and marketing capacity.
In addition to the status of employees, Inqo will also monitor
the number of low cost POC tests manufactured and sold by MD.
Enquiries
Inqo Investments Limited
Chris Bertie, Chief Financial Officer and
Chief Operating Officer Tel: +27 (0)83 6254069
Shard Capital Partners LLP
ISDX Corporate Adviser and broker
Dr Wang Chong Tel: +44 (0)20 7186 9948
About Inqo Investments Limited
'INQO' (www.inqo.co.za) is a South Africa-based social impact
company listed on the London ISDX Growth Market. It makes strategic
acquisitions and investments in businesses designed to tackle
poverty and provide employment, products and services to the poor
in Low Income Countries (LICs).
This information is provided by RNS
The company news service from the London Stock Exchange
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December 14, 2015 02:00 ET (07:00 GMT)