Novacyt, the Anglo-French biotechnology group, announced on Thursday that it anticipates a decline in revenue for the first half of the year. The decrease is attributed to the high comparative figure from the previous year, primarily due to Covid-19-related instrumentation sales.
The company forecasts revenue of £3.3 million ($4.3 million) for the first half, a notable decrease from the £16.5 million reported in the same period last year. Revenue related to Covid-19 amounted to £500,000 in the first half, compared to £13 million in the prior year.
Despite the decline in Covid-19 revenue, Novacyt noted that its non-Covid-19 revenue continued to show growth. In the second quarter, it increased by 3% compared to the first quarter and by 10% compared to the fourth quarter of 2022.
Operational expenditure for the first half is expected to be £7.1 million, indicating a reduction of approximately 13% from the second half of 2022. This reduction reflects the restructuring plans that were implemented in the previous fourth quarter.
Recognizing the significance of the U.K. market for its clinical diagnostics products, Novacyt will prioritize U.K. Conformity Assessed (UKCA) marking for a selection of its new multiplex tests.
The company remains steadfast in its commitment to expand its product portfolio, drive international Research Use Only (RUO) sales, and seek strategic business development opportunities. Novacyt aims to build on the strength of its core business and deliver long-term sustainable growth.