Swiss Pharmaceutical Giant Roche (SWX:RO) stock remains frank with reporting major supply chain issues that have affected the distribution of key NHS supplies and caused a decline in the processing capacity of COVID-19 samples.
Healthcare companies rose more than 0.50% on Thursday morning despite warnings of shortages of swabs used to analyze COVID-19 samples as part of a coalition with key reagents, screening kits and NHS testing and tracing programs.
Last week, the system was hit by a technical glitches that delayed reporting around 15,000 cases, causing a leap of around 23,000 cases in Sunday’s tally of infections due to the backlog.
Roche is one of the leading suppliers of diagnostic equipment in the NHS. The issue is said to have been caused by the move to a new warehouse at the only UK site based in Sussex.
The spokesman has assured the public that the company prioritizes processing Covid-19 test samples, but the BBC reported that the backlog could threaten the diagnosis and reporting of cancer and heart disease.
While the NHS’ trust in southwestern England has already urged GPS to stop all non-emergency blood tests, Roche is trying to smooth out the confusion with its processing power.
In a statement, Roche sought to alleviate fears that supply chain collapse could further affect Covid-19 testing and the distribution of products related to cancer and other serious diseases.
“As a global leader in healthcare, we play our role very seriously in providing critical diagnostic solutions to patients around the world.
“The equipment at the new distribution centre in Sussex, UK had technical issues supplying diagnostic products to the UK and Ireland, which has caused temporary disruption and delayed the distribution of products to UK and Ireland customers.
“We are confident that we will bring significant improvements to the supply of tests affected by these logistical issues by the end of the weekend. We are on track to resolve the issue by the end of next week.”
Meanwhile, international trade secretary Liz Truss encouraged people with Covid-19 symptoms to “continue to go through the testing process” regardless of confusion, but INEWS advised Roche to “enable local contingency plans” to “enable local contingency plans” and recommended that doctors “prioritize only essential services.”
Munira Wilson, a MP for Twickenham and a Liberal Democrat health spokesman, commented that Roche’s supply issues are just adding pressure to the NHS already under considerable tension.
“This not only has serious consequences for our ability to test for Covid-19, but people with potentially very serious illnesses will not be able to get the necessary blood tests or screenings.”
Roche’s shares remain in the green, with a 0.57% increase to CHF 316.40 on BST 11:26/10/20 08/10/20.
The pharmaceutical giant has found its stock price has fallen sharply since its annual peak of CHF 354.05 during May. Despite a proper recovery last month, stocks have fallen in recent weeks amid criticism of the UK’s Covid-19 testing capabilities.
Roche’s dividend yield is 2.87%, and the company boasts a market capitalization of Chf 27.043 billion.
