Novacyt
S.A.
("Novacyt", the "Company" or
the "Group")
Closure
of IT-IS International
Paris, France, and Eastleigh and Manchester,
UK - 8 October 2024 - Novacyt S.A. (EURONEXT GROWTH: ALNOV; AIM:
NCYT), an international molecular diagnostics company with a broad
portfolio of integrated technologies and services, announces the
closure of its IT-IS International Limited ("IT-IS") subsidiary,
effective immediately.
IT-IS, a
Stokesley-based manufacturer of rapid-PCR instruments, was acquired
by Novacyt in 2020 to support the Group's response to COVID-19,
where it facilitated the full delivery of the Group's contracts
during the period. The PCR instrumentation market has since become
saturated, with IT-IS subsequently experiencing several consecutive
loss-making years. IT-IS contributed £0.3m to the Group's total
revenue in H1 2024 (H1 2023: £0.6m).
The closure of
IT-IS is anticipated to improve the Group's EBITDA position by c.
£1.0m annually. A restructuring charge of c. £0.7m is expected in
connection with the closure. The entity will be treated as a
discontinued operation under IFRS 5 for the 2024 financial
year.
The Intellectual
Property ("IP") that exists within IT-IS will be retained to allow
Novacyt to continue an ongoing IP infringement dispute with Roche
Diagnostics GmbH. The dispute, instigated by IT-IS, dates back over
five years and is currently progressing through the German courts.
The Group will provide further updates on the dispute when
appropriate.
Lyn Rees, Chief Executive Officer of
Novacyt, said: "The saturation of the PCR instrument market
following the pandemic has put significant pressure on IT-IS. Given
the subsequent losses, the Board has made the strategic decision to
close the business as we continue to focus on reducing our cost
base and rationalising our product and service offering. By taking
this step, we are better positioning the Group for future growth
and driving value for our shareholders."
"I'd like to take this opportunity to
thank the entire the IT-IS team for their hard work and dedication
over the years."
This announcement
contains inside information for the purposes of Article 7 of
Regulation (EU) 596/2014.
Contacts
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Novacyt SA
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https://novacyt.com/investors
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Lyn Rees, Chief Executive
Officer
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Via Walbrook
PR
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Steve Gibson, Chief Financial
Officer
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SP
Angel Corporate Finance LLP (Nominated Adviser and
Broker)
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+44 (0)20
3470 0470
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Matthew Johnson / Charlie Bouverat
(Corporate Finance)
Vadim Alexandre / Rob Rees
(Corporate Broking)
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Deutsche Numis (Joint
Broker)
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+44 (0)20
7260 1000
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Freddie Barnfield / Duncan Monteith
/ Michael Palser
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Allegra Finance (French Listing Sponsor)
Rémi Durgetto / Yannick
Petit
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+33 (1) 42 22 10 10
r.durgetto@allegrafinance.com
/ y.petit@allegrafinance.com
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Walbrook PR
(Financial PR & IR)
Stephanie Cuthbert / Paul McManus
/
Phillip Marriage / Alice
Woodings
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+44 (0)20
7933 8780 or novacyt@walbrookpr.com
+44
(0)7796 794 663 / +44 (0)7980 541 893
+44
(0)7867 984 082 / +44 (0)7407 804 654
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About Novacyt Group (www.novacyt.com)
Novacyt is an international
molecular diagnostics company providing a broad portfolio of
integrated technologies and services, primarily focused on the
delivery of genomic medicine. The
Company develops, manufactures, and
commercialises a range of molecular assays
and instrumentation to deliver workflows and services that enable
seamless end-to-end solutions from sample to result across multiple
sectors including human health, animal health and environmental.
The Company is divided into three
business segments:
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Clinical
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Broad portfolio of human clinical
in vitro diagnostic
products, workflows and services focused on three therapeutic
areas:
·
Reproductive Health: NIPT, Cystic Fibrosis and
other rapid aneuploidy tests
·
Precision Medicine: DPYD genotyping
assay
·
Infectious Diseases: Winterplex, multiplex winter
respiratory PCR panel
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Instrumentation
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Portfolio of next generation size
selection DNA sample preparation platforms and rapid
PCR machines, including:
·
Ranger® Technology: automated DNA sample
preparation and target enrichment technology
·
MyGo: real-time quantitative PCR (qPCR)
instruments
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Research Use Only
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Range of services for the life
sciences industry:
·
Design, manufacture, and supply of
high-performance qPCR assays and workflows for use in human health,
agriculture, veterinary and environmental, to support global health
organisations and the research industry
·
Pharmaceutical research services: whole genome
sequencing (WGS) / whole exome sequencing (WES)
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Novacyt is headquartered in
Vélizy-Villacoublay in France with offices in the UK (in Eastleigh
and Manchester), Singapore, the US and Canada and has a commercial
presence in over 65 countries. The Company is listed on the London
Stock Exchange's AIM market ("NCYT") and on the Paris Stock
Exchange Euronext Growth ("ALNOV").
For more information, please refer
to the website: www.novacyt.com