Novacyt SA (AIM:NCYT, OTC:NVYTF, EPA:ALNOV) shares slumped in early trading on Tuesday after the Department of Health & Social Care issued a claim against the company.
The specialist in clinical diagnostics has been in dispute with the DHSC for some time in respect of a supply contract announced on 29 September 2020. The DHSC has issued a claim against Primerdesign Ltd and Novacyt SA (AIM:NCYT, OTC:NVYTF, EPA:ALNOV) for £134.6mln relating to this contract. The claim amount is broadly in line with the disputed fourth-quarter 2020 revenue, as previously announced by the company.
Novacyt said it continues to believe it has strong grounds to defend the claim and assert its contractual rights, including in relation to recovering outstanding sums due from the DHSC.
Shares in Novacyt were down 16% at 163.65p after an hour of trading. The stock has been one of the most volatile listed on the London Stock Exchange over the last two years or so. Prior to the pandemic, the shares typically traded in the low teens but shot as high as 1,194p in October 2020 as the demand for Covid testing kits hit the roof. The advent of the Covid vaccines took a lot of wind out of the share price’s sails.
$NCYT - Novacyt S.A. DHSC dispute update https://t.co/IPgerBbmeh
— subhash kishan (@SubhashKishan) April 26, 2022