Novacyt Stock Price
On Monday morning, Novashit’s stock price (LON:NCYT) rose by more than 10%. This is one of the highest risers for purpose. Novacyt, which continued from where he left off last week, was able to quickly return to 500p. This fell from 695p earlier this month after a conflict with the UK Department of Health and Social Care (DHSC). After a significant growth throughout 2020, more stocks in Novashit have come down since January 25th, when Novashit was 1,190p. With further profits over the past week, investors will be paying attention to what proves to be a less valuable stock.
NHS contract termination
A few weeks ago, Novacyt said he was concerned about revenue from a dispute with the UK Department of Health and Social Care (DHSC) over the termination of contracts between the pairs. The company says revenue and profit levels for 2021 may be lower than market expectations without contracts.
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This situation is exacerbated by Novacyt’s lack of clarity regarding sales as a result of the “Covid-19 pandemic and the constantly changing nature of diagnostic testing demand.” The majority of the company’s sales that are increasing the company’s stock price came from contracts. Novacyt earned 72.6 million GBP in the first quarter of 2021, with 50% of this coming from sales to DHSC.
The company’s statement said: “The director is confident that new contract victory will continue as Novacyt expands international sales and expands to private sector testing, but revenues and profits for 2021 are lower than current market expectations. The company registered with AIM also said that DHSC would not extend its supply contract for Covid-19 testing, and by taking legal action, it would “assert contractual rights.” There is a strong basis for this.”
Not everything is bad
But it’s not all fate and darkness for Novatyt, as they plan to launch some new rapid test kits for coronavirus variations later this year. The company also accumulates money on its balance sheet in an amount of £91.8 million. Its value fell dramatically in 2021, but there are many unknown factors that make it difficult to assess Novashit’s stock price.
