Laying the Ground for Profitable Growth
Genetic Analysis is a science-based diagnostic company founded in 2008 that is a pioneer in the human microbiome field and has over 15 years of expertise in research and product development. The Company has developed the GA-map® technology platform for standardized and targeted microbiota analysis, a market that lacks a standardized diagnostic test. The platform includes various products and services to satisfy a wide range of use cases, ranging from diagnosing patients to Research-use-Only (RuO). The Company also has ongoing strategic product development to address the expected needs in the market, including a diagnostic tool for IBD and a rapid microbiome-based PCR test.
Three Reasons to Invest
A Platform Strategy Driving Recurring and Growing Revenues
Genetic Analysis business model is based on the Company’s GA-map® platform, where today’s primary revenue driver is sales of reagent kits required to perform tests that serve as the basis for diagnosing patients’ microbiomes. As more laboratories adopt the user-friendly platform with immediate result publication through the Company’s cloud-based software, sales of reagent kits are expected to increase, generating recurring revenue streams for Genetic Analysis with high gross margins, estimated to amount to 75-85%.
Collaboration with Ferring Pharmaceuticals Validates the Market Shift and the GA-map® Platform
A validation of the markets shift towards a more diagnostic approach is Genetic Analysis partnership with Ferring Pharmaceuticals, which constitutes of the development of a rapid microbiome-based PCR test, combining Genetic Analysis’ GA-map® platform with Ferring’s Microbiome Health Index biomarker. The GA-map® MHI GutHealth test is expected to reduce processing time from weeks to hours, lowering costs, and enhance standardization in microbiome diagnostics. Set for launch as a Research Use Only (RuO) product in Q2-25, Genetic Analysis holds exclusive commercialization rights without royalty or milestone obligations to Ferring. The test will initially target patients suffering from Clostridioides difficile infection (CDI), which is eligible for treatment with Ferring’s Rebyota drug, the first fecal microbiota product approved by the FDA. Hence, in the long-term, the test is expected be used to follow-up on how individual patients react on the Rebyota drug. This underscores the market shift towards diagnostics as more drugs within the human microbiome are approved. The launch, expected during H1-25, is expected to drive growth for Genetic Analysis by adding a new product to the portfolio within a new disease area.
High Market Growth Creates Long Growth Runway
The human microbiome has been referred to as a ”newly discovered organ” and in recent years research has emphasized the interplay between gut health and the immune system, highlighting its essential role in well-being. Moreover, several diseases have been linked to alterations in the composition and function of the microbiome. Given these insights, strong market growth is projected in the coming years. Global Market Insights estimates an annual market growth rate of 25.7% from 2024 to 2032, reaching a valuation of USD 6.5bn. The primary growth driver is expected to be advances in research, which have revealed the microbiome’s potential in therapeutics. As therapeutics become more readily available, the need for reliable diagnostic tools is expected to grow in tandem, both for selecting which patients that should receive treatment and for tracking therapeutic response over time, including the potential requirement for repeated dosing. Genetic Analysis has an established first mover advantage within microbiome-based diagnostics through the patented platform GA-map®, which was used to develop the first CE IVD-marked (In Vitro Diagnostic) product for mapping microbiomes, why Analyst Group argues that the Company is well positioned to capitalize on the expanding market.
Analyst Group comments:
Genetic Analysis AS (”Genetic Analysis” or ”the Company”) has developed the GA-map®, a platform for diagnostic analysis of microbiomes. The GA-map® platform aims to standardize microbiome diagnostics, which is expected to generate high long-term sales growth with a CAGR of 39% from 2024-2028. Since our previous analysis update, we have raised our justified market cap for Genetic Analysis from approximately NOK 49m to around NOK 77m, considering the reduced financial risk following the capital raises as well as the launch of a consumer test in the Chinese market, which, according to Analyst Group, holds strong potential. However, given the estimated increase in the number of shares following the capital raises, the increase in terms of value per share is more modest. With an applied EV/S multiple of 1.8x on 2027’s estimated sales of NOK 44.5m and a discount rate of 12.4%, a potential present value per share of NOK 1.09 (1.0) is derived in a Base scenario.
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About the offering
On 27 May 2025 the Board of Directors of Genetic Analysis resolved, based on authorization granted by the Annual General Meeting on 19 May 2025, on a rights issue with preferential rights for the Company’s existing shareholders of maximum 8 230 545 new shares corresponding to maximum proceeds of approximately NOK 7.1 million (the “Offering”). In accordance with the shareholders’ pre-emptive subscription right, Genetic Analysis AS is offering up to 8 230 545 new shares in the Company for subscription (the “Offerer Shares”) (the “Offering”). The shares in the Offering is ordinary shares with quota value of NOK 0.60 per share. Subscription period: June 5, 2025 to June 16, 2025 at 12:00 hours (CET).
Background, motive and use of funds
Genetic Analysis AS, founded in 2008, addresses global health challenges with research-driven, standardized microbiome diagnostics via its CE-marked GA-map® platform, enabling rapid detection of gut dysbiosis and pathogen identification to improve patient care worldwide. Genetic Analysis’ vision is to become the preferred company for standardised gut microbiota testing worldwide. Genetic Analysis is committed to helping unlock and restore the human microbiome through its state-of-the-art technology.
The Offering is intended to provide the Company with capital to strengthen efforts within sales and marketing of existing products. By increasing sales, Genetic Analysis expects to be in a situation where cash flow from product sales can finance potential further developments of diagnostics tests related to other diseases or condition in addition to the current focus areas. Upon a fully subscribed Offering the Company will receive approximately NOK 7.1 million before deduction of transaction-related costs of approximately NOK 1.0 million.
Net proceeds from the Offering will primarily be allocated to the following activities:
• Strengthening sales and marketing eƯorts 50%
• Working capital 50%
