Times coverage today - Novacyt plans deals before drop in covid-19 revenues A diagnostics company whose fortunes have been transformed by the prompt launch of coronavirus tests is seeking acquisitions before a potential drop in Covid-19 revenues. Novacyt said yesterday that its revenue had surged to €72.4 million in the six months to the end of June, compared with €7.2 million a year earlier, propelling the previously loss-making company to a pre-tax profit of €46.1 million. The turnaround is thanks to the early development of its polymerase chain reaction tests and multiple supply deals worldwide, including with the British government and a partnership with Astrazeneca on a testing laboratory at the University of Cambridge. Novacyt, which is listed in London and Paris, operates almost entirely in the UK, where it has a head office and manufacturing site in Camberley, Surrey. Primerdesign, which it acquired in 2016 for £12.3 million and which is behind its tests, is based near Southampton. Novacyt said that the orders outlook for its Covid-19 products meant that its performance in the second half of the year was on track to exceed the first half. Full-year revenues are set to surpass €150 million. It also expects its rate of financial performance to extend into the first half of next year. Novacyt is pursuing product and company acquisitions to generate additional revenues and profits to “offset potential future reductions in Covid-19 revenues”, as well as to boost its target of becoming a market leader in respiratory and transplant clinical diagnostics. The bumper results have allowed it to wipe out its €8.3 million debts. Graham Mullis, chief executive, said that Novacyt was pursuing specific technology deals, as well as acquisitions of profitable revenue-generating companies in Europe and the United States that would enable it to “penetrate markets with our products faster” than through its distribution network. Mr Mullis, 57, said that Novacyt faced no constraints in supplying tests to the British government, which has been criticised for shortages. “The situation is very, very complex. It is not just a question of having the right reagent, but the right trained people, the right logistics and the right systems in place.” Novayct’s Aim-listed shares, which were at 13p early this year, closed up 10p, or 2.7 per cent, yesterday at 380p.