YGEN.L Share News (YGEN)

(Sharecast News) - Clinical diagnostics company Novacyt announced on Wednesday that it has signed an agreement for certain contract manufacturing services with molecular diagnostics firm Yourgene Health.
The AIM-traded company said Yourgene would support it in the production of the Covid-19 diagnostic test developed by its molecular diagnostics division Primerdesign.

It said its AIM peer Yourgene's 'Good Manufacturing Practice' (GMP) compliant manufacturing facility at Citylabs in Manchester would be used to expand its production capacity of the Covid-19 test.

To expedite the process, Yourgene would initially manufacture critical components of the test.

The two companies could seek to expand the agreement to include production of final versions of the test in due course.

Novacyt said the first batches of the critical components were expected to be shipped from the Citylabs site to Primerdesign in Southampton over the next few weeks.

"As the global demand for our Covid-19 test continues to increase, we are pleased to have rapidly established a relationship with the expert team at Yourgene to further expand our manufacturing capacity," said Novacyt chief executive officer Graham Mullis.

"We look forward to working with Yourgene as we continue to ensure we are fully prepared to meet the demand for our test to support the global response to monitor and contain the Covid-19 pandemic."

Lyn Rees, CEO of Yourgene, added that the company was "pleased" to be able to utilise its manufacturing capability to support Novacyt in the production of the key diagnostic test for Covid-19.

"This manufacturing agreement illustrates that we have an incredibly skilled workforce and flexible manufacturing capabilities to support diagnostic test developers at critical times."

At 1447 GMT, shares in Novacyt were up 7.3% at 169p, while those for Yourgene Health had surged 34.58% to 16.15p.