The Bioventix (LSE:BVXP) dividend yield has become a lot more interesting of late. Even as the UK stock market has been setting records, this AIM-listed biotech group has seemingly missed out on the fun, with the share price tumbling almost in half over the last 12 months. And yet dividends continue to be paid.

The result? A 9% payout’s now on offer. So the question is, should I take it? Or is there something else going on here?

What is Bioventix?

Let’s start with a quick introduction. Bioventix is a specialist biotech business that develops and supplies sheep monoclonal antibodies for use in medical diagnostics.

In plain English, its technology helps diagnostic companies build tests for things like heart disease, hormone issues, vitamin deficiencies and neurological conditions. And beyond simply selling these antibodies, the firm also goes on to earn recurring royalties for tests developed with its biotechnology.

Why’s the share price fallen?

The main problem for this business has been weak demand in Bioventix’s core markets, especially China. Local cost-cutting policies and a push for domestic manufacturing have made life harder for Western suppliers in the region. And to make matters worse, cheaper royalty-free alternatives have also started to bite elsewhere.

That pressure showed up in last year’s 2025 results (ending in June). Profit before tax fell 5% to £10.1m, while sales to Chinese in vitro diagnostics companies dropped to £2.4m. The company warned that around 2% of annual revenue could be at risk in the near term, with a further 3%-4% potentially exposed over the medium term.

Skip ahead to the last six months of 2025 and similar patterns of revenue and earnings decline emerged. So it isn’t surprising to see investor sentiment sour and the share price take a tumble.

Yet strangely, as previously mentioned, dividends have continued to flow. Why? Because buried behind the headline figures, some encouraging trends are emerging.

Is this income story secretly attractive?

The group’s royalties from neurological antibodies have increased fivefold, to £150,000 from £30,000.

That’s obviously not game-changing, but it does signal that some of the company’s newer diagnostic projects are beginning to gain traction. And management’s long-term confidence is reflected in the decision to maintain payouts even at a 9% yield.

It’s also worth pointing out that Bioventix also still has a strong balance sheet and a high-margin royalty model to capitalise on these new long-term opportunities in diagnostic medicine. And if those newer product areas scale, earnings could start bouncing back rather rapidly, paving the way for both more dividends and a recovery rally in the share price.