Novacyt SA (LON:NCYT) have seen their shares bounce, as the firm gave an update on its’ coronavirus testing kit.
The firm said that its coronavirus test kit, which has been developed by Primerdesign, its molecular diagnostics division, have invested a significant increase in manufacturing capacity following strong demand.
Novacyt noted that as of March 11, the firm has sold and received order for over £2.3 million of their coronavirus testing costs.
Interestingly, this figure represents five months of sales for the division under normal circumstances – and as a results shares have bounced.
Over the past two weeks the number of countries the Company is selling its COVID-19 test into has doubled to over 50, which is expected to increase further as the virus continues to spread.
Currently, the company is seeing significant sales from Europe and from a number of new and existing distribution partners across the Middle East.
Novacyt also added that they had completed a formal evaluation of its COVID-19 test by Public Health England (PHE) and is very satisfied with the performance assessment of its test.
The firm said that they are now expecting more NHS Hospital to purchase the testing kit, which should drive demand and sales.
Graham Mullis, Chief Executive Officer of Novacyt, commented:
“We believe the commercial demand for and interest in our COVID-19 test could continue for several months as the virus continues to spread from country to country. We are therefore ensuring we are fully prepared to meet the increasing demand for the product, as we continue to position Novacyt to support the global response to monitor and contain the COVID-19 outbreak. The sale of our COVID-19 test has already generated significant revenue for the Company, which we expect to continue given the increasing demand for the test.
“In addition, we believe interest in our COVID-19 test will have a positive, long-term impact on Novacyt as new customers look to purchase our broader product range. We are already seeing an increased demand for our B2B capabilities as customers look to utilise our molecular design and development capabilities.
“We will continue to update shareholders regularly with the Company’s progress, but we also ask shareholders to be patient as we try to respond to an ever-changing situation.”
Novacyt thrive on coronavirus scares
A few weeks back, news first broke out that Novacyt had been developing a testing kit for the coronavirus.
Novacyt SA have said that it has launched a CE-Mark approved molecular test for the detection of the coronavirus (COVID-19).
CE-Mark allows a company to register their product in compliant with the European Unions safety, health and environmental requirements.
The firm said that the COVID-19 test is the first CE-Mark test for the 2019 strain of novel coronavirus and follows the company’s rapid launch of its research use only coronavirus test on January 31.
Novacyt added – “As a result of the CE-Mark, the Company’s COVID-19 test can be used directly by laboratories and hospitals for the testing of patients without the need for validation by clinicians. The Company anticipates increased demand for its test for COVID-19 due to this extended use for clinical diagnosis.”
Shares in Novacyt trade at 121p (+13.41%). 12/3/20 10:42BST.