Novacyt: stock in a spin after loss of a big contract
(CercleFinance.com) - The Novacyt share is the biggest faller on the Paris stock exchange on Friday after the group published a trading update in which the clinical diagnostics specialist announced the loss of a major client.
At around 2pm, the stock was down 30% on profit-taking, it having been the best performer in Paris market last year, with its share price having increased over 15-fold.
In its lunchtime report, Novacyt explained that discussions on extending its supply contract with the UK Department of Health and Social Care (DHSC) had not been successful.
As a result, revenue and profit for 2021 may be below current market expectations, as this contract has been stopped, the company warns.
Novacyt further adds that it is now in dispute with DHSC over the amount of the contract, which could also have a significant impact on its Q4 2020 revenue.
In the document, Novacyt said it generated 50% of its Q1 revenue (83 million euros) from DHSC, mainly through sales of its Covid-19 PCR "PROmate" test.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
At around 2pm, the stock was down 30% on profit-taking, it having been the best performer in Paris market last year, with its share price having increased over 15-fold.
In its lunchtime report, Novacyt explained that discussions on extending its supply contract with the UK Department of Health and Social Care (DHSC) had not been successful.
As a result, revenue and profit for 2021 may be below current market expectations, as this contract has been stopped, the company warns.
Novacyt further adds that it is now in dispute with DHSC over the amount of the contract, which could also have a significant impact on its Q4 2020 revenue.
In the document, Novacyt said it generated 50% of its Q1 revenue (83 million euros) from DHSC, mainly through sales of its Covid-19 PCR "PROmate" test.
Copyright (c) 2021 CercleFinance.com. All rights reserved.