Lab21 bolsters sales pipeline as Novacyt boosts revenues to €7.2m
Group revenues for clinical diagnostics group Novacyt were up 12 per cent to €7.2 million for the six months ended 30 June 2019. Novacyt owns Lab21 in Cambridge.
Lab21 revenue of €4m represents growth of 17 per cent driven by the acquisition of the infectious disease assets from Omega Diagnostics which completed in June 2018.
The second quarter of 2019 saw sales restricted by a lack of working capital, as reported on 30 April 2019, which mainly impacted the Lab21 business unit.
Despite this, the new sales team increased UK sales of Microgen branded products by 29 per cent compared to the first half of 2018.
The order book remains strong for the second half of the year and continued growth is expected depending on how quickly the supply chain can be restored.
Novacyt recently sold its Clinical Lab operations based in Cambridge in an all cash deal worth £400k. Whilst the financial benefit of the sale was relatively modest, it will enable the group to focus on driving growth and profitability from its core reagent manufacturing business.
The company continues to look for a buyer(s) of its NOVAprep® business unit and has interest from China, the world’s fastest growing Liquid Based Cytology market used in cervical cancer screening.
As the sale process continues, the company is taking further steps to reduce the costs and cash burn of the unit.
The performance of the Primerdesign and Lab21 businesses remains strong entering the second half of the year. Both companies have significant sales pipelines and expect sales to be higher than H1.