RE: ab27 Jan 2021 14:40
Cont...
“In consultation with advisers, the decision was made that there was not a statement to make as there were no outstanding orders with the DHSC and therefore no orders to be cancelled,” the company said in a statement to the Financial Times.
It added: “Abingdon continues to manufacture the product for potential public and private sector use in the UK and internationally.”
Abingdon’s December 11 prospectus said the government had not issued additional orders beyond the initial 1m but warned about the government’s termination rights in the event the company missed the Christmas approval deadline.
“If the DHSC were to exercise such right, it could have a significant negative impact on the group’s results, overall financial condition and prospects,” the prospectus said. If no further orders were made, Abingdon’s board believed a similar volume could be sold to other buyers at the same or a higher price, according to the listing document.
In Tuesday’s trading update Abingdon — whose shares are up 36 per cent since its float last month, valuing the business at £125m — said it expected revenues for the six months to the end of December to be in line with expectations at about £7.7m.
“Regarding the current DHSC contract, as noted previously, this will expire on 14 February 2021 and, in line with the government’s shift to a dynamic purchasing strategy, the board expects that any future orders will be received via an application by the company to future DHSC tender notices,” the company said.
Abingdon came under scrutiny last year after Public Health England researchers found its antibody test to be less accurate than the company’s 99 per cent claim. The group in November questioned the researchers’ methodology and said: “Our customer, DHSC, is satisfied with the performance of the test.”
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