Sensyne Health PLC’s (LON:SENS) announcement that its MagnifEye app to improve the accuracy of instant Covid-19 tests has received UK regulatory approval is ‘unequivocally positive’, according to broker Liberum.

The MHRA has granted authorisation of special use alongside the Innova lateral flow test.

Innova was the brand originally used to test the MagnifEye technology as part of an NHS Digital pilot study, notes Liberum.

“We believe that all current NHS provided lateral flow tests are the Innova brand,” added the broker.

“We estimate that there will be as many as 100mln per week of these distributed in the UK if the government hits its desired aim of every adult testing themselves twice weekly.”

Sensyne Health receives UK regulatory sign-off for AI technology that automates analysis of COVID lateral flow tests

The broker added there remain many unknowns, such as how or even if MagnifEye will be integrated with these tests, but it opens a route to significant revenues for Sensyne if it can find a way to use today’s approval to strike a commercial agreement with the NHS.

“In terms of the theoretical financial opportunity, even at half the royalty it gets from its current testing partner, Excalibur, the maximum revenue potential would be £4mln per week.

“For context, we forecast total revenues for Sensyne of £27mln for fiscal 2022.”

Shares rose by 2.5% to 167.5p.

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