Novacyt share price falls after failure to renew UK supply contract

(Alliance News) - Novacyt SA shares fell 31% on Friday after the biotechnology firm announced its ...

Alliance News 9 April, 2021 | 2:01PM
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(Alliance News) - Novacyt SA shares fell 31% on Friday after the biotechnology firm announced its supply contract with the UK Department of Health & Social Care was not being renewed.

In a trading update on Friday Novacyt said: "Both parties are now in dispute regarding the contract, which may have a material impact on the fourth quarter of 2020 revenue. However, the company has taken legal advice and believes it has strong grounds to assert its contractual rights."

Novacyt delivered revenue for the first quarter of 2021 of GBP72.6 million, with 50% of this attributable to sales to the DHSC.

"Given the ever-changing nature of the Covid-19 pandemic and diagnostic testing demands, the company continues to have limited visibility over future sales", the company said in a statement.

"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."

By Will Paige; willpaige@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Novacyt SA 0.82 EUR 2.89 -

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