REG - Novacyt S.A. - Closure of IT-IS International

Novacyt SAAnnouncement

08/10/2024 12:30

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RNS Number : 3839H  Novacyt S.A.  08 October 2024

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

 

 Novacyt SA                                                              https://novacyt.com/investors (https://novacyt.com/investors/)
 Lyn Rees, Chief Executive Officer                                        Via Walbrook PR
 Steve Gibson, Chief Financial Officer

 SP Angel Corporate Finance LLP (Nominated Adviser and Broker)                                             +44 (0)20 3470 0470
 Matthew Johnson / Charlie Bouverat (Corporate Finance)

 Vadim Alexandre / Rob Rees (Corporate Broking)

 Deutsche Numis (Joint Broker)                                                                             +44 (0)20 7260 1000
 Freddie Barnfield / Duncan Monteith / Michael Palser

 Allegra Finance (French Listing Sponsor)       +33 (1) 42 22 10 10

                                             r.durgetto@allegrafinance.com (mailto:r.durgetto@allegrafinance.com) /
 Rémi Durgetto / Yannick Petit                 y.petit@allegrafinance.com

 Walbrook PR (Financial PR & IR)                                         +44 (0)20 7933 8780 or novacyt@walbrookpr.com

 Stephanie Cuthbert / Paul McManus /                                     +44 (0)7796 794 663 / +44 (0)7980 541 893

 Phillip Marriage / Alice Woodings                                        +44 (0)7867 984 082 / +44 (0)7407 804 654

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:

 

 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
 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

 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

 

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