Novacyt S.A. ("Novacyt", the "Company" or the "Group"): Trading Update
09 Aprile 2021 - 1:30PM
Business Wire
Regulatory News:
Novacyt (EURONEXT GROWTH: ALNOV; AIM: NCYT), an international
specialist in clinical diagnostics, announces an update on its
supply contract with the UK Department of Health and Social Care
(DHSC) and provides an unaudited trading update for the three
months ended 31 March 2021.
DHSC contract
On 29 September 2020, Novacyt announced a second supply contract
with the DHSC for exsig® COVID-19 Direct kits and other products.
In the full year trading update announced on 29 January 2021,
Novacyt explained it was in active discussions with the DHSC
regarding an extension of the supply contract. Unfortunately, an
extension has not been agreed, although the Company supplied
PROmate™ in Q1 2021 in accordance with DHSC demand. Regrettably,
the parties are now in dispute regarding the contract, which may
have a material impact on Q4 2020 revenues. However, the Company
has taken legal advice and believes it has strong grounds to assert
its contractual rights.
Q1 trading update and 2021 outlook
Novacyt delivered revenue for Q1 2021 of €83.0 million (£72.6
million). Approximately 50% of Q1 revenue was driven by sales to
the DHSC, predominately PROmate™. The remaining c.50% of Q1 revenue
was driven by continued growth of international sales and expansion
of the Company’s private sector testing operations.
Given the ever-changing nature of the COVID-19 pandemic and
diagnostic testing demands, the Company continues to have limited
visibility over future sales. Whilst the Directors are confident
new contract wins will continue as Novacyt expands international
sales and into private sector testing, they believe revenue and
profit for 2021 may be lower than current market expectations due
to the absence of the DHSC contract extension.
Novacyt expects PROmate™ to continue to be rolled out in
hospitals, private sector settings and international markets for
the foreseeable future, although the Company believes that Q1
PROmate™ sales may be sufficient to support the NHS current roll
out plans for the remainder of 2021.
The Company is encouraged by demand for its mobile processing
laboratories and SNPsig® portfolio, both launched in Q1 2021, for
private sector testing and detection of COVID-19 variants,
respectively. New COVID-19 lateral flow products are also under
development, to expand the Company’s ability to meet evolving
COVID-19 testing demands.
The Directors believe the Company remains well-positioned to
capitalise on future growth opportunities as it continues to expand
its product portfolio and service offering.
The information contained within this Announcement is deemed by
the Company to constitute inside information as stipulated under
Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as
amended) as it forms part of the domestic law of the United Kingdom
by virtue of the European Union (Withdrawal) Act 2018 (as amended).
Upon the publication of this Announcement via the Regulatory
Information Service, this inside information is now considered to
be in the public domain.
- End -
About PROmate™
PROmate™ is designed to improve the efficiency of COVID-19
testing by repackaging some reagents and reducing the number of
consumables and number of steps required. This decreases operator
complexity and improves cycle times. The PROmate™ assay in
combination with the Company's q16 and q32 instrument platforms is
CE-Mark approved and has been independently validated by the UK’s
Technology Validation Group (TVG).1 The TVG accreditation supports
the use of the q16/q32 and PROmate™ system in a near patient
setting. PROmate™ is the only direct-to-PCR assay with TVG
validation.
[1]https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/957995/TVG_Report-PROmate.pdf
About Novacyt Group
The Novacyt Group is an international diagnostics business
generating an increasing portfolio of in vitro and molecular
diagnostic tests. Its core strengths lie in diagnostics product
development, commercialisation, contract design and manufacturing.
The Company's lead business units comprise of Primerdesign and
Lab21 Products, supplying an extensive range of high-quality assays
and reagents worldwide. The Group directly serves microbiology,
haematology and serology markets as do its global partners, which
include major corporates.
For more information please refer to the website:
www.novacyt.com
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Novacyt SA Graham Mullis, Chief Executive Officer James
McCarthy, Chief Financial Officer +44 (0)1276 600081
SP Angel Corporate Finance LLP (Nominated Adviser and
Broker) Matthew Johnson / Charlie Bouverat (Corporate Finance)
Vadim Alexandre / Rob Rees (Corporate Broking) +44 (0)20 3470
0470
Numis Securities Limited (Joint Broker) Freddie Barnfield
/ James Black +44 (0)20 7260 1000
Allegra Finance (French Listing Sponsor) Rémi Durgetto /
Yannick Petit +33 (1) 42 22 10 10 r.durgetto@allegrafinance.com;
y.petit@allegrafinance.com
FTI Consulting (International) Victoria Foster Mitchell /
Alex Shaw / Mary Whittow +44 (0)20 3727 1000
victoria.fostermitchell@fticonsulting.com /
Alex.Shaw@fticonsulting.com/ mary.whittow@fticonsulting.com /
Novacyt.group@fticonsulting.com
FTI Consulting (France) Arnaud de Cheffontaines +33
(0)147 03 69 48 arnaud.decheffontaines@fticonsulting.com
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