Novacyt: never a dull moment but time for greater clarity
News that a dispute with the DHSC extends to sales made in the 1st quarter of 2021 has pulled the shares down again, although, as we suggested previously, this was surely to be expected. Novacyt now needs to provide greater clarity on 2020 financial results and its current financial position, lawyers notwithstanding!
Shares in clinical diagnostics group Novacyt (EURONEXT GROWTH: ALNOV; AIM: NCYT), tumbled further after an update on its ongoing dispute with the Department of Health and Social Care (‘DHSC’). On 9 April 2021, Novacyt announced that it was in dispute with the DHSC in relation to its second supply contract and that this may have a material impact on Q4 2020 revenues. In the same announcement it was also noted that approximately 50% of Q1 2021 revenue of €83.0m was driven by sales to the DHSC, predominately relating to its PROmate™ product. PROmate™ is designed to improve the efficiency of…