Novacyt: shares take a beating
AIM’s top performer in 2020 has fallen back to earth after a disappointing trading update. Are the shares now a bargain or is there more trouble ahead? We offer our thoughts on this amazing little business.
The share price of Novacyt (LON: NCYT), the clinical diagnostics specialist and AIM’s top performer in 2020, tumbled 40% today on news that it is dispute with Department of Health and Social Care (DHSC). BackgroundOn 29 September 2020, Novacyt announced a second supply contract with the DHSC for its exsig®COVID-19 Direct kits and other products. In an earlier trading update on 29 January 2021, it explained it was in active discussions with the DHSC regarding an extension of the supply contract. Unfortunately, an extension has not been agreed, although Novacyt supplied PROmate™ in the first quarter of 2021 in accordance…