RE: PE index27 Jun 2021 15:41
troublesome -
IF GM 'gives' DHSC too much in a dispute settlement, - it will give credence to the supposition that
NCYT provided DHSC with faulty goods.
IMO ShaunP felt there was more than a chance this had happened, but I totally disagree.
If faulty assays were provided, (after rigorous QA to retain and uphold ISO standards, that as far as we know nobody else has had reason to complain of), then the 09.04.2021 RNS's would not contain "the Company has taken legal advice and believes it has strong grounds to assert its contractual rights".
GM would have settled the dispute by using the arbitration measures before now without going to court.
So if DHSC HAVE called into question the quality of the assay delivered, (and they did accept quite a lot of PROmate, - hence the ",Company believes that Q1 PROmateβ’ sales may be sufficient to support the NHS current roll out plans for the remainder of 2021" statement, - why accept so much.
https://bourse.challenges.fr/actu/ALNOV/FR/81211/novacyt-chute-de-12-apres-son-point-sur-le-conflit-dhsc.html
21/05/21
Novacyt: 12% drop after its point on the DHSC conflict (CercleFinance.com) -
The stock fell nearly -12% after its update on its dispute with the UK Department of Health and Social Affairs (DHSC).
Novacyt warns that this conflict 'could now have a significant impact on the first quarter of 2021 revenue achieved with the DHSC'.
"Novacyt has sought legal advice regarding this dispute and believes it has a strong case to assert its contractual rights," oddo said.
The analyst points out that the NHS seems to be contesting the billing arrangements, giving up a risk of recognition of income.
'As a reminder, about 50% of Q1 2021 revenue came from sales at DHSC'.
'The uncertainties surrounding this dispute militate in favour of a certain degree of caution.
This legal knot risks continuing to maintain doubt and weigh on the stock," adds Oddo,
who remains underperforming on the stock with a target of 4.10 Euro.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
French boursorama bb users have vouched for validity of Cercle Finance as a source, but unfortunately I don't think the translation is good, as the meaning is not crystal clear.
Any French speakers can do a better job please?