MGRC’s shares decline further after Bursa issues UMA query

by S BIRRUNTHA / pic credit: ANNUAL REPORT

MALAYSIAN Genomics Resource Centre Bhd’s (MGRC) share price slumped again yesterday, falling limit down or 35 sen and thus making the genomics and biopharmaceutical service provider a penny stock again.

MGRC closed at 82 sen yesterday, wiping out another RM43.5 million in market capitalisation with the absence of buyer support yesterday suggesting the stock could face another day down today.

Yesterday’s share price fall was the third consecutive limit down for the counter this week which has wiped out some RM196 million in market value for a counter with some 124.2 million shares outstanding.

Buying by substantial shareholder Pixelvest Sdn Bhd of 180,000 shares on Dec 7 was too little to stop the downward price trajectory.

Bursa Malaysia had issued an unusual market activity (UMA) query on Dec 6 after MGRC shares fell limit down or 30% in the afternoon trading session to close at RM1.67.

Responding to the UMA query, MRGC stated that it was not aware of any corporate development or other reasons for the sharp fall in its share price recently.

The group was also issued a UMA query on Nov 8 following a sharp fall in its share price after its largest shareholder I Concept Global Growth Fund ceased to be a substantial shareholder a few days earlier.

Following the query by the exchange, MGRC appointed two new independent and non-EDs effective Nov 8, while major shareholder Pixelvest bought some 200,000 shares on Dec 1.

From a business perspective, MGRC recently partnered with new generation matchmaking platform, MatchMde, to roll-out South-East Asia’s first biocompatibility relationship matching service for users on MatchMde’s platform.

Dubbed “The Gene Match”, the opt-in service will be available to all MatchMde users in the Philippines, Singapore and the US towards the end of 2021.

According to the MGRC’s website, the company provides genome sequencing and analysis, and genetic screening services.

It has expanded into the biopharmaceutical sector with immunotherapy for various types of cancer.

For its first quarter ended Sept 30, 2021, MGRC posted a net profit of RM239,000 on the back of RM9.3 million in revenue.

However, the company fell into the red in its financial year ended June 30, 2021, with a net loss of RM4.29 million from a net profit of RM17.1 million a year ago, mainly due to the previous financial year recorded a profit, net of tax, from discontinued operations of RM23.34 million.

Revenue for the period came in higher at RM1.78 million from RM951,000 previously, underpinned by the derecognition of the progress of genome sequencing and analysis services.

The company was optimistic on its prospects, stating that it has diversified its business to include the business of biopharmaceutical and healthcare products and services.