Novacyt (LON:NYCT) shares fell on Thursday after the clinical diagnostics company provided outlook for 2020 and reported a strong increase in cash levels through 2020.
Novacyt shares were down 11% on Thursday but are up over 2,600% in 2020.
The Novacyt share price closed out 2019 trading at just 12p and have reached intraday highs above 500p in the last month.
The astronomical rise was sparked by Novacyt’s provision of testing kits for COVID-19, having won approval from the FDA and secured orders from Public Health England.
The outlook for 2020 was included in the full year results which highlighted a £6.5m loss for 2019. However, the loss was for the 12 months to 31st December, and doesn’t represent any activity from COVID-19 testing.
Investors may have been disappointed with the outlook as there wasn’t any guidance on potential sales in revenue terms, although the company did say they expected to be producing at an ‘output rate of more than ten million tests per month’ from June 2020.
As an indication of the impact of the COVID-19 testing kits on Novacyt’s business so far in 2020, cash had increased from €1.8 million at the end of 2019 to €9.2 million at the end of April 2020.
“2019 was a year of consolidation as we completed the refinancing and restructure of the business, positioning Novacyt to resume its three-pillar growth strategy of organic, R&D and acquisitive growth,” said Graham Mullis, Group CEO of Novacyt.
“Following the rapid development and successful launch of one of the world’s first molecular tests for COVID-19, we expect 2020 to be transformational for the business in almost every way based upon visibility of current sales and continued significant demand for the test,” Mullis continued.
“Supported by Novacyt’s core strengths of in vitro diagnostics product development, commercialisation and contract manufacturing, we believe the Company’s stronger financial position and enhanced reputation will be the catalyst in creating a leading global clinical diagnostics business in infectious diseases.”
“I would like to extend my sincere gratitude to all of our employees for their ongoing hard work and dedication, as well as our partners and suppliers for their loyalty throughout 2019 and so far in 2020 in the fight against COVID-19. Finally, I would like to thank our shareholders, long- standing and new, who continue to support Novacyt.”