Novacyt: UK claim weighs on stock

(CercleFinance.com) - Novacyt shares are slumping on Tuesday after taking stock of its long-standing dispute with the British Department of Health and Social Care (DHSC).


The diagnostics specialist says it was informed yesterday that the DHSC had decided to issue a claim against the group and its molecular testing subsidiary Primerdesign for 134.6 million pounds.

The amount of the claim - which relates to a supply contract that was announced in September 2020 - is pretty much equal to the disputed revenues for Q4 2020, the company says.

In a statement, Novacyt says it continues to believe it has "strong reasons" to defend the claim and enforce its contractual rights, including collecting amounts owed by DHSC.

Investors are familiar with the case, which has been dragging on for over a year now and which is related to the failure of a supply contract for RNA extraction kits, used in chain reaction tests by polymerase (PCR) for Covid-19.

As a result Novacyt shares are the biggest faller in Paris on Tuesday, down almost 13% at 11 a.m. The share has fallen over 61% over the past 12 months.



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