Good morning, it's Jack here with Tuesday's SCVR.

I'm interested in quite an exciting announcement from Novacyt SA (LON:NCYT) so without further ado let's dive in!


Novacyt (LON:NCYT)

Share price: 565p (+20.9%)

No. shares: 70.6m

Market cap: £331.4m

(I hold)

Launch of COVID-19 antibody test and New UK DHSC Contract.

I’ve been wary of buying stock in companies that attach their name to the ongoing COVID pandemic but with Novacyt Sa (LON:NCYT) it seems that the transformational trading figures are already in the bag and the market is perhaps slow to acknowledge that.

This is an international specialist in clinical diagnostics whose business now sees unprecedented levels of demand. The group’s recent half year update was extremely strong and the outlook for the rest of the group’s financial year is impressive.

Jumping back to that statement:

  • H1 2020 sales of €72.4m and EBITDA was €49.4m, resulting from the sale of the Company's market leading PCR COVID-19 test, and
  • Visibility of orders for the Company's COVID-19 product portfolio suggests H2 2020 performance on track to exceed that of H1 2020

That sounds to me like more than €100m of FY20 EBITDA vs a £220m market cap at the time (£330m now) off which you can knock c£15m of cash (and probably more by end of year)

There are a couple of companies right now where it seems as though the market is struggling to price in a COVID-related transformation that the company has explicitly guided towards and NCYT is one of them (LoopUp, for example, is another - last covered by Paul here).

Anyway, NCYT has two separate updates today.

Launch of COVID-19 antibody test

NCYT has launched a new assay (ELISA: enzyme-linked immunosorbent assay) test for the detection of IgG antibodies to SARS-CoV-2 derived from plasma and serum samples.

This test complements NCYT’s existing COVID-19 product portfolio and allows clinicians to differentiate between active and prior SARS-CoV-2 infections in patients.

Novacyt has the manufacturing capacity to deliver more than three million ELISA antibody tests per month initially and is working with its manufacturing partner to ensure this can be increased.

Graham Mullis, CEO, commented:

We continue to strengthen our product offering in COVID-19 testing as demand continues and we are delighted to launch an…

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