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Novacyt S.A. announced the immediate closure of its IT-IS International Limited subsidiary on October 8, 2024. IT-IS contributed £0.3m to Novacyt's H1 2024 revenue (H1 2023: £0.6m), and the closure is expected to improve Novacyt's annual EBITDA by approximately £1.0m, incurring a restructuring charge of approximately £0.7m. Novacyt will retain IT-IS's Intellectual Property for an ongoing dispute with Roche Diagnostics GmbH, which dates back over five years and is progressing through German courts.
| Date | 8 Oct 2024 |
| Time | 12:30:00 |
| Category | Miscellaneous |
| ID | 3839H |
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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Lyn Rees, Chief Executive Officer |
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) |
+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) |
+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 |
+33 (1) 42 22 10 10 |
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Walbrook PR (Financial PR & IR) Stephanie Cuthbert / Paul McManus / Phillip Marriage / Alice Woodings |
+44 (0)20 7933 8780 or [email protected] +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 |
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 |
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 |
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) |
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