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01/25/2024 – 08h00
Paris, France, Eastleigh and Manchester, UK – January 25, 2024 – Novacyt S. A. (EURONEXT GROWTH: ALNOV; AIM: NCYT), a global molecular diagnostics company with a broad portfolio of built-in technologies and services, announces an unaudited business update for the year ended December 31, 2023. This includes approximately 4 months of trading by Yourgene Health plc (“Yourgene”) following its acquisition, which was finalized on September 8, 2023.
Financial Highlights
· Unaudited Group statutory revenue for FY 2023 expected to be circa £11.6m in line with management guidance, of which £0.6m relates to COVID (FY 2022*: £21.0m of which £14.7m related to COVID).
· The Group’s unaudited statutory portfolio for non-COVID portfolio of £11. 0 million represents over 95% of the total (FY2022*: £6. 3 million).
· Cash position at 31 December 2023 was £44.1m (H1 2023: £81.7m), reflecting the cash consideration and associated costs of the acquisition of Yourgene, and the Group remains debt free.
*excludes any Yourgene revenue as pre-acquisition
Unaudited pro forma group revenue
· Pro forma Group profit for the 12 months ended 31 December 2023 £22. 9 million (2022: £44. 3 million).
· Excluding COVID-related sales, core pro forma profit for the 12 months ended December 2023 was £21. 8 million, compared to £22. 9 million for the 12 months ended 2022, a drop of £1. 1 million, or about 5%.
· Yourgene’s non-COVID sales were virtually flat year-over-year
Genomic technologies saw an increase of £0. 5 million, driven by a strong expansion of Ranger® technology and reproductive fitness products.
This was offset by a £0. 6 million relief in genomics services, due to relief in volume from a key visitor to the APAC business and the transfer of a key visitor from EMEA to Yourgene. NIPT’s in-house non-invasive antenatal testing”).
· Novacyt’s non-COVID portfolio had a weaker moment part of the year after sales in the first part of the year
o Revenue from the Primer Design business decreased by £0. 5 million (11%) year-on-year.
o IT-IS International’s tool sales decreased £0. 4 million (32%) through 2022, which is a higher point of comparison given the increased demand for tools in the first part of 2022 due to COVID.
Integration of Yourgene Health plc
In September 2023, Novacyt finalized the strategic acquisition of Yourgene, in particular by editing its global diagnostics capabilities, adding scale and diversification to accelerate the company’s long-term growth. Following this acquisition, the Group has a broader technological portfolio, strengthening its comprehensive offer for visitors; improved routes to markets in Europe, Asia and the Americas; and increased capabilities and expertise in the progression and commercialization of cutting-edge molecular diagnostics.
As part of the ongoing integration process, the company has reorganized its business, moving the progression and commercialization of all clinical products to Yourgene, which will allow Primer Design to focus on its core core offering, i. e. , trial progression for study purposes only. (“RUO”). The IT-IS business will continue to focus on real-time quantitative PCR instrumentation and will also bring technical expertise and experience to the expansion of Ranger Technology’s instrument diversity.
As a result of this reorganization, the Group will be divided into the following segments:
Base Reduction
The business case for the acquisition assumed that £5. 0 million of annualised charge synergies would be realized in the third year of the integration, with approximately £2. 5 million of investment required to realise those savings. Lately, the Group is well ahead of this target, with 80% of annualised savings achieved through the end of 2023 and the remainder expected through the end of 2024. The costs to achieve those synergies are also well within £2. 50. ForecastArray m investment forecasting. The biggest savings to date have been achieved by reorienting Primer Design’s business into the RUO market, eliminating duplicate business purposes, and streamlining management.
Taiwanese Divestment Update
The divestment of the Taiwanese service laboratory to INEX Innovate Pte Ltd is still progressing. As previously announced, the necessary government approvals for the divestment have taken significantly longer to achieve than originally anticipated. Both parties remain committed to completing the transaction, and the Group will update the market in due course.
Business Progress
The Group’s advertising priority remains the continued deployment of key clinical products in its core markets of Europe and Asia.
Obtaining certification for its clinical products under the new EU requirements of the In Vitro Diagnostic Regulation (“IVDR”) remains a key focus for the Group. In November 2023, the Group’s first product, the Yourgene® DPYD genotyping assay, received IVDR certification. In December 2023, the Company submitted the application for its Cystic Fibrosis quantitative fluorescence PCR (QF-PCR) test.
The Company has seen strong growth in its cystic fibrosis portfolio in Q4 2023 in Australia following the introduction of a new nationwide reimbursement pathway by the Australian government that enables all eligible Australians to receive cystic fibrosis screening either prior to, or early in pregnancy.
Primer Design RUO’s portfolio focuses on three sectors, agriculture, human fitness and animal fitness, where the company has a key proposition, great expansion prospects and a core visitor base. The company has a strong and developing pipeline of opportunities, supported by a new marketing strategy. and product control team to drive demand for the RUO portfolio.
The company continues to generate new opportunities for Ranger Technology through new applications. Instrument sales have been strong in the APAC region, especially in China, where generation is being evaluated across several organizations. In November 2023, Yourgene, a compliant spouse of PacBio, a leading developer of high-quality, accurate sequencing responses with a global visitor base. PacBio has published a technical note approving the use of Yourgene’s LightBench® tool (Ranger technology) with PacBio’s HiFi sequencing formula for a variety of long DNA fragment lengths to enable superior yields. for high-fidelity sequencing data. PacBio’s visitor base spans a wide diversity of study areas, aggregating human genome sequencing, plant and animal sciences, infectious diseases and microbiology, oncology, and other emerging applications, representing a significant opportunity to expand the use of the Ranger generation.
Strategy
The company strives to leverage its strength and expertise in cell-free DNA programs for long-term, sustainable growth, expanding market penetration and overseas sales of key products, expanding its portfolio, and pursuing strategic business progression opportunities to build a global presence. Corporate molecular diagnostics.
Commenting James McCarthy, Acting Chief Executive Officer, said: “The acquisition of Yourgene was a significant milestone for Novacyt, adding scale and diversification to our product portfolio and wider customer offering, as well as our sales and R&D teams. The integration process is ahead of schedule with synergies already being realised, and I believe we are well placed to execute our growth strategy. We have been encouraged by customer demand for our products, particularly Ranger Technology and our reproductive portfolio and remain focused on driving the global sales of our key clinical and instrumentation products while also rebuilding our RUO business.”
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
Contacts
About Novacyt Group (www. novacyt. com)
Novacyt is a foreign molecular diagnostics company that offers a broad portfolio of embedded technologies and matrices primarily geared towards the supply of genomic medicine. The company develops, manufactures, and markets a variety of molecular assays and tools to provide workflows and enable a seamless, end-to-end process. -Final answers from pattern to outcome across multiple industries, aggregating human health, animal health, and the environment.
The Company is divided into 3 segments:
Novacyt is headquartered in Vélizy, France, with offices in the United Kingdom (Stokesley, Eastleigh and Manchester), Taipei (pending divestment), Singapore, the United States and Canada and has a presence in over 65 countries. The company is indexed on the London Stock Exchange. Exchange AIM (“NCYT”) and the Euronext Paris Growth Stock Exchange (“ALNOV”).
For information, please refer to the website: www. novacyt. com
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