Novacyt (NCYT) experienced a “transformational” first half, in the words of chief executive Graham Mullis. This was not an exaggeration. Revenues for the France-based, Aim-traded clinical diagnostics group soared by more than 900 per cent to €72.4m (£63.3m) over the six months to June, with more than 91 per cent of that figure arriving in the second quarter alone. Meanwhile, cash profits are due to come in at more than €45m.
Central to such growth was Novacyt’s Covid-19 molecular testing kit, which the group developed and launched as early as January 2020 – making it one of the first to do so. It has since released three new products to support laboratory testing for the disease. Aside from the new coronavirus test, the group also makes diagnostic products for clinical and food labs, and for haematology and serology applications.
With global cases of the new coronavirus exceeding 12.7m – up by more than two-thirds over the past month – Novacyt expects continued demand for testing “well into 2021”. The group’s tests are being sold in multiple countries, including the US where it has signed a distribution agreement with a new strategic partner. It says it has adequate manufacturing capacity and materials to keep pace with what is required, and thus expects second-half sales to be even greater than the first – with margins “at least” at similar levels.
