TIPS FOR ACTING MIDAS: EDX Medical is a medical pioneer backed by tycoons

Andrew Lloyd Webber is the creator of some of the most famous musicals of modern times: The Phantom of the Opera, Les Misérables, Cats and Evita, to name just a few. Throughout his career, he has amassed a fortune estimated at £800 million.

Lord Lloyd-Webber is not the only wealthy investor in this business. Scotland’s first billionaire, Sir Tom Hunter, who founded and sold the sports broadcaster Sports Division, is another EDX enthusiast.

Lately, he has decided to invest some of that money into EDX Medical, a small company that is helping to revolutionize the way cancer, heart disease and hospital infections are diagnosed and treated.

Lord Lloyd-Webber is not the only wealthy investor in this business. Scotland’s first billionaire, Sir Tom Hunter, who founded and sold the sports broadcaster Sports Division, is another EDX enthusiast.

And the same goes for former Wolverhampton Wanderers chairman Steve Morgan, a property tycoon turned philanthropist whose cash fortune is worth more than £900m.

It is highly unusual for a small healthcare company to have such illustrious backers, but EDX itself is no ordinary startup.

Founded just two years ago, the company is the brainchild of Sir Chris Evans, a scientist and serial entrepreneur who has built more than 50 medical companies from scratch, creating huge rewards for investors along the way.

He is EDX’s chief scientist, but the company is run by Mike Hudson, another scientist-turned-businessman, with a broad pedigree in the healthcare industry, from established multinationals like Bristol Myers Squibb to startups around the world.

With decades of experience, Hudson and Evans have a wide network of contacts in the medical profession and academia.

They are putting this to good use with a suite of products designed to improve treatments for some of the most dangerous diseases in the modern world.

Cancer affects more than 20 million people a year worldwide and numbers are rising rapidly, with 30 million cases expected by 2030.

Treatment has advanced by leaps and bounds in recent years with the advent of personalized care, which reflects the individual genetic makeup of each patient.

EDX has developed tests that reveal these genetic characteristics in a matter of minutes so that cancer patients receive the right medication at the right time.

A rapid and accurate diagnosis can mean the difference between life and death, and support for EDX testing is growing at a rapid pace.

Heart disease is also on EDX’s radar, along with a range of hospital-acquired infections, from sepsis to MRSA.

All too often, these diseases are fatal, especially because those affected are often elderly and infirm. Rapid diagnosis is essential to ensure that patients receive appropriate treatment, so that they are given effective drugs if they need them, but without excessive doses of antibiotics.

This is where EDX comes in. Based in Oxford and Cambridge, the company benefits from working closely with scientists and clinicians in both cities.

The group has also attracted powerful partners, including blue-chip medical giant Thermo Fisher, valued on the New York Stock Exchange at $230bn (£176bn).

The partnership is likely to yield significant benefits, combining EDX’s expertise and agility with Thermo’s global strength.

EDX has also designed a blood test for people whose family history suggests they might be vulnerable to cancer.

One test covers some of the most common cancers, including breast, prostate, bowel, pancreatic and ovarian.

If the results are positive, doctors may recommend lifestyle changes or monitoring systems that can stop these diseases.

Hudson and his team have been hard at work over the past few months and news has been scarce.

This is set to change in the coming weeks, with the launch of a range of new diagnostic tools for diseases ranging from bowel cancer to pneumonia. Some tests are carried out in laboratories.

Some are portable and can be used in GP surgeries or even at home, much like Covid test kits.

In all cases, however, EDX is focused on delivering fast, accurate and wide-ranging results, helping people live longer and healthier lives.

EDX will release its results for the year to March later this week and its supporters expect sales of just a few hundred thousand pounds. But revenues and profits should rise rapidly as EDX turns testing and trials into a commercial reality.

MIDAS VERDICT: EDX Medical shares were listed on the Aquis junior stock exchange in 2022 at 6 pence. The price reached 12 pence this year, but is now at 10 pence. At this level, the stock should generate profits.

EDX is a pioneer in its field, developing technology that could improve care for some of the most dangerous diseases. With strong partners and multi-million dollar backers, this is an attractive bet for the adventurous investor.