Novacyt: UK Government’s £135m lawsuit against Covid-19 test-maker set for trial
Biotech firm Novacyt will be in the English High Court in June as it is set to defend itself against the UK Government’s £135m lawsuit over Covid tests.
The molecular diagnostics company is being sued by the UK Secretary of State for Health and Social Care in a claim concerning the supply of rapid-PCR test kits.
The UK Government launched the claim in the Technology and Construction Court (TCC) in April 2022 against the Anglo-French company, along with PCR manufacture Primerdesign. Back in May 2016 Primerdesign became part of the Novacyt group.
The lawsuit is reportedly worth £135m as the Government is claiming the company supplied instruments that did not work appropriately – the claim is over its second supply contract with the UK Department of Health and Social Care (DHSC).
In September 2020, Novacyt announced it has signed a new supply contract with the DHSC for its q16 and q32 rapid-PCR instrument platforms, exsig COVID-19 direct kits and genesig SARS-CoV-2 Winterplex kits.
Under this contract, Primerdesign was to supply its products to the DHSC for up to six months. The first phase of the contract involved the immediate deployment of 300 PCR instruments, related kits and support services with a minimum value of £150m for the first 14 weeks.
There was an option to extend the contract for a further 10 weeks for at least £100 million – however, the extension never got agreed and instead it turned into a legal dispute.
In an update to its shareholder this morning, Novacyt revealed that a trial hearing has been listed to commence on 10 June 2024 at the English court, ans set to run until 4 July.
The legal parties will be in court later this month for a pre-trial review, which is listed for 30 April.
The company disclosed on Friday morning that the court will also hear an application by the DHSC for summary judgment in relation to one aspect of its claim, as part of which the DHSC is seeking judgment to be entered for the full value of its claim.
Novacyt stated that “having taken legal advice, the company considers this application to be very weak with low prospects of success, and is confident that the court will dismiss the application.” According to the High Court claim system, the company has London-based law firm Stephenson Harwood on for its defence.
However, as the company noted, it is not known when the court will give judgment in relation to the application.
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