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Diaceutics (GB:DXRX)
LSE:DXRX
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Diaceutics (DXRX) AI Stock Analysis

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GB:DXRX

Diaceutics

(LSE:DXRX)

Rating:70Outperform
Price Target:
147.00p
▲(5.00% Upside)
Diaceutics' strong technical momentum and positive corporate developments are offset by challenges in profitability and valuation concerns. The company's strategic expansions and solid balance sheet provide a promising outlook, but immediate financial performance issues need addressing.
Positive Factors
Client Engagement
Impressive strategic and operational KPIs remain encouraging, such as 23% growth in ARR to £16.8m, now 7 enterprise engagements (vs 4), eight additional customers (to 52) and 16 further brands (to 85), indicating an offering that is resonating with its big pharma clients.
New Contract
Diaceutics has successfully renegotiated its first PMx contract with the new commercial licensee, which is worth £4.5m in recurring service revenues.
Revenue Growth
Another year of strong organic revenue growth in FY24 (+36% to £32.2m) and continued momentum into the first four months of 2025 (+35% to £8.4m), puts the business well on track to deliver on current revenue (+25%) and EBITDA expectations for FY25.
Negative Factors
Financial Dependency
Diaceutics looks set to generate approximately £3.25m per year from one brand, substantially ahead of the estimated £400k per-brand average spend in 2024.
Share Price Volatility
Analyst sees the recent share pullback as a buying opportunity due to the business delivering very strong organic growth and trading on just 2.3x current FY25E EV/sales, despite its superior top-line growth.

Diaceutics (DXRX) vs. iShares MSCI United Kingdom ETF (EWC)

Diaceutics Business Overview & Revenue Model

Company DescriptionDiaceutics PLC, a diagnostic commercialization company, provides data, data analytics, and implementation services for pharmaceutical companies worldwide. It operates DXRX platform, which offers DXRX data solutions, including access to various pipelines of diagnostic testing data from a network of laboratories that provides DXRX signal, lab mapping, testing dashboard, and physician mapping services; DXRX marketplace solutions, which enables a marketplace, where labs, pharma, and diagnostic companies come to find partners for collaborations on precision medicine diagnostics. The company also provides DXRX patient journey that enables pharma customers to complete a longitudinal analysis of biomarker testing journeys of individual patients, which identifies opportunities for earlier testing and treatment; DXRX lab benchmarking that enables laboratories to gain competitive edge and compare key criteria to others in the industry providing metrics, such as disease, testing and methodology, market share, turnaround time, and laboratory leadership in these areas; DXRX test reimbursement, which enables pharma customers to engage with laboratories to fund the introduction of novel companion diagnostics, as well as reducing the lag time in test adoption; and DXRX test signal that delivers a real-time alert of a testing event, which allows pharma customers to identify therapeutically actionable patients in the previous weeks. In addition, it offers diagnostic landscape, planning, implementation, and tracking services; and consulting services for precision medicine diagnostics. Further, the company provides test standardization, test quality assessment, test report optimization, laboratory tech support, test access and reimbursement, laboratory training, and educational resources services. Diaceutics PLC was incorporated in 2005 and is headquartered in Belfast, the United Kingdom.
How the Company Makes MoneyDiaceutics makes money through a combination of service fees, data analytics subscriptions, and consultancy engagements. Its key revenue streams include collaboration with pharmaceutical companies to develop and implement companion diagnostics strategies, providing access to its DXRX platform for data-driven insights, and offering laboratory testing services to support the commercialization of precision medicines. The company partners with a network of laboratories and leverages its proprietary database to offer actionable insights, which are critical for pharmaceutical firms looking to enhance the efficacy and marketability of their personalized therapies. Significant partnerships with leading pharmaceutical companies and a strong focus on integrating diagnostics into the drug lifecycle are major factors contributing to Diaceutics' earnings.

Diaceutics Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q2-2024)
|
% Change Since: |
Next Earnings Date:Sep 16, 2025
Earnings Call Sentiment Positive
The earnings call presented a mix of positive developments, particularly with revenue growth, high gross margins, and the strategic launch of the PMx solution, alongside record order book figures. However, challenges such as the increased EBITDA loss and decreased TCV were noted. The overall sentiment leans towards optimism, driven by strategic advancements and strong financial positioning.
Q2-2024 Updates
Positive Updates
Revenue Growth
Revenue increased to GBP 12.3 million, up 24% or 28% on a constant currency basis, with 55% of revenue now being subscription-based.
High Gross Margin
Gross profit margins in H1 were 87%, with expectations to maintain around 85% for the full year.
PMx Launch
Launched the PMx solution which integrates the last 2 years of investment, offering a GBP 2 million per year per brand revenue potential, with higher levels of conversion and patient engagement.
Enterprise-wide Engagements
Increased the number of enterprise-wide engagements from 4 to 7 since FY '23, representing a key area of growth.
Strong Balance Sheet
Cash reserves of GBP 16.7 million with no debt, projecting a low point of GBP 13 million by year-end.
Record Order Book
Order book at a record high of GBP 27.9 million, providing 71% visibility of full-year consensus analyst guidance revenue.
Negative Updates
EBITDA Loss
EBITDA loss widened to negative GBP 1.3 million compared to negative GBP 200,000 in June 2023.
Decrease in TCV
TCV for the first half of 2024 down to GBP 13.8 million, affected by timing of contracts, change orders, and lower SAS sales.
Company Guidance
In the Q2 2024 earnings call for Diaceutics, CEO Ryan Keeling detailed significant advancements achieved in the first half of the year, particularly emphasizing the launch of their PMx solution. The company has expanded its lab network, notably integrating rare disease data and enhancing European data capabilities, all contributing to a robust and automated data pipeline. This automation, aided by AI, has streamlined data handling from extraction to customer delivery. The PMx solution, which emerged as a pivotal development, has transformed their approach by directly engaging physicians with patient data, boosting engagement and conversion rates. The financial health of the company is strong, with a 24% revenue increase to £12.3 million and a gross profit margin of 87%. Diaceutics aims to transition to a 70% subscription-led revenue model by 2025, with recurring revenues currently at 55%. The company also reported a record order book of £27.9 million, with plans to achieve profitability and free cash flow generation by 2025.

Diaceutics Financial Statement Overview

Summary
Diaceutics has demonstrated strong revenue growth but faces challenges with profitability and cash flow management. Despite a robust balance sheet with high equity and low leverage, the company struggles with negative net profit margins and declining cash flow.
Income Statement
65
Positive
Diaceutics has shown significant revenue growth from the previous year, with a revenue increase of 35.71% in 2024 compared to 2023. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins, which suggest high operational costs relative to revenue. Despite a positive EBITDA margin, the overall profitability is challenged by persistent losses.
Balance Sheet
70
Positive
The company's balance sheet is relatively strong with a high equity ratio of 82.00%, indicating a stable financial foundation and minimal reliance on debt, as shown by a low debt-to-equity ratio of 0.03. However, the declining trend in stockholders' equity over the years raises concerns about the sustainability of this stability.
Cash Flow
60
Neutral
Diaceutics has experienced a decline in free cash flow, moving from a positive value in 2022 to negative in 2024, highlighting challenges in operational cash generation. The operating cash flow to net income ratio suggests issues in converting income to cash, which could impact liquidity. Despite these challenges, the company maintains a cautious approach to financing activities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue32.16M23.70M19.50M13.94M12.70M
Gross Profit28.27M19.71M14.04M10.57M9.33M
EBITDA2.77M2.36M3.61M2.11M178.00K
Net Income-1.70M-1.75M724.00K561.00K263.00K
Balance Sheet
Total Assets48.62M46.34M48.26M45.01M43.52M
Cash, Cash Equivalents and Short-Term Investments12.74M16.67M19.84M19.68M25.25M
Total Debt1.06M1.21M1.33M1.56M118.00K
Total Liabilities8.76M5.56M5.74M4.36M3.28M
Stockholders Equity39.86M40.79M42.51M40.65M40.24M
Cash Flow
Free Cash Flow-3.98M-3.54M278.00K-5.03M-6.04M
Operating Cash Flow651.00K1.31M5.15M570.00K253.00K
Investing Cash Flow-4.03M-4.21M-4.87M-5.60M-6.29M
Financing Cash Flow-64.00K-239.00K-132.00K-270.00K19.61M

Diaceutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price140.00
Price Trends
50DMA
128.83
Positive
100DMA
126.89
Positive
200DMA
128.76
Positive
Market Momentum
MACD
2.35
Positive
RSI
79.35
Negative
STOCH
64.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DXRX, the sentiment is Positive. The current price of 140 is above the 20-day moving average (MA) of 137.75, above the 50-day MA of 128.83, and above the 200-day MA of 128.76, indicating a bullish trend. The MACD of 2.35 indicates Positive momentum. The RSI at 79.35 is Negative, neither overbought nor oversold. The STOCH value of 64.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DXRX.

Diaceutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$116.19M-4.18%35.69%2.42%
66
Neutral
£131.14M22.258.95%4.80%-4.59%165.38%
51
Neutral
$7.86B-0.33-41.57%2.23%23.26%-2.03%
49
Neutral
£20.96M-68.75%30.92%36.40%
48
Neutral
£246.95M-73.02%
46
Neutral
£107.93M167.16%-100.00%-23.91%
45
Neutral
£7.95M-130.73%226.45%53.51%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DXRX
Diaceutics
140.00
13.00
10.24%
GB:AGL
ANGLE plc
7.50
-5.38
-41.77%
GB:AVCT
Avacta Group plc
60.00
-13.50
-18.37%
GB:EKF
EKF Diagnostics Holdings
31.00
3.10
11.11%
GB:SCLP
Scancell Holdings
9.65
-7.10
-42.39%
GB:VRCI
Verici Dx Plc
0.52
-6.23
-92.30%

Diaceutics Corporate Events

Business Operations and Strategy
Diaceutics to Present at Canaccord Genuity Growth Conference
Positive
Aug 5, 2025

Diaceutics PLC announced its participation in the Canaccord Genuity 45th Annual Growth Conference, highlighting its role as a prominent player in the pharma and biotech sectors. This event presents an opportunity for Diaceutics to engage with global investors and showcase its innovative solutions, potentially enhancing its market positioning and stakeholder engagement.

The most recent analyst rating on (GB:DXRX) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Diaceutics stock, see the GB:DXRX Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Diaceutics Enhances Employee Incentives with Share Purchase Plan
Positive
Jul 30, 2025

Diaceutics PLC has announced the purchase of ordinary shares by trustees on behalf of key personnel as part of its UK and Global Share Incentive Plan. The company has matched these purchases with a 1:1 share award, reflecting its commitment to employee incentives and aligning interests with stakeholders. This move is part of a broader strategy to facilitate share trading and enhance transparency in shareholding, with implications for shareholder notifications under regulatory guidelines.

The most recent analyst rating on (GB:DXRX) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Diaceutics stock, see the GB:DXRX Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Diaceutics Appoints Lauren DeWitt as General Counsel
Positive
Jul 29, 2025

Diaceutics PLC has appointed Lauren DeWitt as Executive Vice President, Legal, General Counsel, and Group Company Secretary. With her extensive legal experience in the pharmaceutical sector, including roles at Sandoz and Novartis, DeWitt is expected to significantly contribute to Diaceutics’ strategic growth and legal functions. Her expertise in litigation, regulatory, and transactional legal functions aligns with the company’s growth ambitions, positioning Diaceutics to enhance its leadership team and support its mission in precision medicine.

The most recent analyst rating on (GB:DXRX) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Diaceutics stock, see the GB:DXRX Stock Forecast page.

Business Operations and Strategy
Diaceutics PLC Issues Share Options to Key Personnel
Neutral
Jul 23, 2025

Diaceutics PLC has announced the issuance of 1,886,357 share options to its directors, senior management, and key staff as part of its Employee Share Option Plan. This move is aligned with the company’s long-term incentive plan, aiming to enhance performance through specific criteria such as Total Shareholder Return, revenue growth, and EBITDA margin. The share options, which represent approximately 7.32% of the company’s current issued share capital, are set to vest over a three-year period, reflecting Diaceutics’ commitment to aligning employee incentives with company performance and shareholder interests.

The most recent analyst rating on (GB:DXRX) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Diaceutics stock, see the GB:DXRX Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Diaceutics Reports Strong H1 2025 Performance with 22% Revenue Growth
Positive
Jul 22, 2025

Diaceutics PLC reported a strong performance in the first half of 2025, with a 22% revenue growth on a constant currency basis, reaching £14.6 million. The company has demonstrated significant commercial momentum, with a 16% increase in annual recurring revenue and a strong order book of £29.4 million. Diaceutics continues to expand its customer base, working with 74 therapeutic brands across 43 customers, including 18 of the top 20 global pharma companies. The company remains debt-free with £10.4 million in cash, supporting ongoing investment in product innovation and commercial growth. The outlook for the second half of 2025 is positive, with expectations for continued margin improvement and market expansion beyond precision medicine.

The most recent analyst rating on (GB:DXRX) stock is a Buy with a £185.00 price target. To see the full list of analyst forecasts on Diaceutics stock, see the GB:DXRX Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Diaceutics Expands PMx Commercialization Partnership After Early Success
Positive
Jul 17, 2025

Diaceutics PLC has announced the expansion of its PMx commercialization partnership contract following early success, reflecting their partner’s confidence in the solution. This expanded agreement is expected to contribute to incremental service revenue in FY2025 and strengthens Diaceutics’ position in the precision medicine ecosystem. The new contract introduces Signal Connect, a service designed to enhance healthcare professionals’ awareness and clinical actionability, particularly in cases involving rare or novel biomarkers. The PMx solution continues to demonstrate its value by enabling cost-effective, agile launches and maximizing patient discovery for biopharma companies.

The most recent analyst rating on (GB:DXRX) stock is a Buy with a £185.00 price target. To see the full list of analyst forecasts on Diaceutics stock, see the GB:DXRX Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Diaceutics Expands PMx Partnership to Enhance Precision Medicine Impact
Positive
Jul 17, 2025

Diaceutics PLC has announced the expansion of its PMx commercialization partnership contract, following early success in the collaboration. This expansion is expected to increase service revenue in FY2025 and solidify Diaceutics’ role as a strategic partner in the precision medicine ecosystem. The enhanced contract introduces Signal Connect, a service aimed at supporting healthcare professionals in identifying and acting on rare or novel biomarkers, thus facilitating access to targeted therapies. The PMx solution continues to offer a cost-effective commercialization strategy for biopharma companies, enabling efficient launches and maximizing patient discovery.

The most recent analyst rating on (GB:DXRX) stock is a Buy with a £185.00 price target. To see the full list of analyst forecasts on Diaceutics stock, see the GB:DXRX Stock Forecast page.

Business Operations and Strategy
Diaceutics Enhances Employee Stake with Share Incentive Plan
Positive
Jun 30, 2025

Diaceutics PLC announced that its trustees have purchased ordinary shares on behalf of key personnel as part of the company’s Share Incentive Plan (SIP) schemes. The company has matched these purchases with a 1:1 share award, and the shares will be held by the trust until they vest according to the scheme rules. This move is part of a broader strategy to facilitate employee participation in the company’s growth, potentially enhancing stakeholder alignment and motivation.

The most recent analyst rating on (GB:DXRX) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Diaceutics stock, see the GB:DXRX Stock Forecast page.

Shareholder Meetings
Diaceutics PLC Successfully Passes All AGM Resolutions
Positive
Jun 18, 2025

Diaceutics PLC announced that all resolutions proposed at its Annual General Meeting were passed, reflecting strong shareholder support. The resolutions included re-electing directors, appointing auditors, and authorizing share allotments, indicating stable governance and strategic alignment with shareholder interests.

The most recent analyst rating on (GB:DXRX) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Diaceutics stock, see the GB:DXRX Stock Forecast page.

Business Operations and Strategy
Diaceutics Enhances Employee Incentives with Share Purchases
Positive
Jun 6, 2025

Diaceutics PLC has announced that trustees of its 2020 Employee Benefit Trust have purchased ordinary shares on behalf of key personnel under the company’s Share Incentive Plan. The company has matched these purchases with a 1:1 share award, utilizing unallocated shares previously issued. This move is part of a broader strategy to facilitate share trading and incentivize employees, potentially impacting shareholder calculations under FCA rules.

The most recent analyst rating on (GB:DXRX) stock is a Buy with a £195.00 price target. To see the full list of analyst forecasts on Diaceutics stock, see the GB:DXRX Stock Forecast page.

Shareholder MeetingsFinancial Disclosures
Diaceutics PLC Announces AGM and Annual Report Release
Neutral
May 21, 2025

Diaceutics PLC has announced the posting of its Annual Report for the year ended 31 December 2024, along with the Notice of the 2025 Annual General Meeting (AGM) to shareholders. The AGM is scheduled for 18 June 2025 in Belfast, and the documents will be accessible on the company’s website, indicating a transparent approach to stakeholder engagement and corporate governance.

The most recent analyst rating on (GB:DXRX) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Diaceutics stock, see the GB:DXRX Stock Forecast page.

Other
Diaceutics PLC Shareholding Update: Major Transaction by Key Stakeholder
Neutral
May 15, 2025

Diaceutics PLC announced that Delia Keeling, closely associated with the company’s Chair, Peter Keeling, sold 500,000 ordinary shares at 126 pence each. This transaction reduces the Keelings’ combined shareholding to approximately 17.98% of the company’s issued share capital. This sale is significant as it reflects a change in the major holdings of the company, potentially impacting its market perception and shareholder dynamics.

The most recent analyst rating on (GB:DXRX) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Diaceutics stock, see the GB:DXRX Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Diaceutics Reports Strong FY 2024 Results with Significant Growth and Expansion
Positive
May 13, 2025

Diaceutics PLC reported strong financial and commercial performance for FY 2024, with a 39% revenue growth to £32.2 million and a 50% increase in adjusted EBITDA to £4.2 million. The company expanded its sales presence in the US and launched its PMx solution, contributing to its growth momentum. With an order book of £24.9 million and an ARR of £16.8 million, Diaceutics is positioned for continued growth in 2025. The company secured three new enterprise-wide engagements and increased its customer base, working with 18 of the top 20 global pharma companies. Despite macroeconomic uncertainties, Diaceutics remains confident in achieving its growth and profitability targets for 2025.

The most recent analyst rating on (GB:DXRX) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Diaceutics stock, see the GB:DXRX Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 05, 2025