Pharma giant has another PCR test approved amid massive blow to Covid-19 revenue
Covid-19 test maker Novacyt has had another PCR test approved for use in the UK, just a week after a damning trading update signalled the need to diversify its portfolio.
The London-listed firm, which operates in both the UK and Paris, said the new test removes the need for manual extraction, which it hopes will “significantly improve” laboratory workflow and cut costs.
Group CEO David Allmond said the latest approval, its fifth since November last year, leaves the company well placed for any future Covid-19 outbreaks.
The latest Covid-19 could eventually be one of nine under Novacyt’s wing, with another four currently undergoing evaluation, as cases in the UK rise.
However, the company last week revealed a major blow to its revenue, which crumbled more than 70 per cent in the first half of this year as Covid-19 demand plummeted “faster than expected”.
Investors at the time took the trading update as a sign to jump ship, pushing its share price down more than 24 per cent.
With the firm earning most of its revenue from Covid-19 related services, bosses said they would be committing £10m this year to develop and commercialise the parts of its portfolio which are not reliant on the coronavirus.
Novacyt also makes tests for illnesses such as Influenza and Norovirus.
The company, which has a market capitalisation of £104m, now expects to end the year with an operating cost of £20.6m.