Novacyt boosted after PCR tests win approval

SHARES in Covid testing company Novacyt soared by more than a quarter after it won UK approval for its PCR tests.

Novacyt now plans to resume sales of its PCR tests in Britain after having been added to the Health Security Agency’s register of approved devices.

The French-based biotech had been one of the UK’S largest suppliers at the start of the pandemic after being among the first to develop a PCR test for the virus in January 2020. However, it had to stop selling them after a new review system came into force earlier this month.

Novacyt had expected a £3m hit to sales from but said the blow would now be far lower. News of the approval sent shares in the Aim-listed company surging 31pc to a three-month high.

It follows a difficult few months for Novacyt in the UK, after it lashed out at the Government earlier this year over supply agreements for PCR tests.

Novacyt had revealed in April that it was in a dispute with the Department for Health and Social Care over a contract that ran until the end of last year, sending its shares down more than 40pc. The company had been in talks to extend this contract, but no agreement was reached.

The row prompted Novacyt to warn over margins in September, and also write down inventory. It took a decision not to recognise revenue from contracts with the Department for Health and Social Care for the first half of the year “while the dispute remains unresolved”.

In its latest update, Nova- cyt said it was still working with legal advisers “to progress the dispute and believes it has strong grounds to assert its contractual rights”.

Shares remain 40pc lower than their April levels.