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Novacyt faces £134.6 million NHS legal claim
Shares in international specialist diagnostics company Novacyt (NCYT:AIM) came under further pressure (26 Apr) after it received a claim of £134.6 million from the DHSC (Department of Health and Social Care).
The shares dropped 12% to 167p on the news and languish around 85% below the highs reached in January 2021 before news of the DHSC dispute emerged.
The claim relates to a second contract signed between Novacyt and the DHSC in September 2020 to supply the NHS with rapid PCR Covid-19 testing equipment as well as training services.
The company said the value of DHSC’s claim is ‘broadly’ in line with its previously reported ‘disputed’ fourth quarter 2020 revenues.
Following a strategic review under new CEO David Allmond the company is seeking to maintain its position as a global first responder to infectious diseases and develop new non-Covid-19 products.
Novacyt has a proven track record of rapidly addressing significant disease outbreaks and was one of the first companies to launch a commercial Covid-19 test in January 2020.