Member Info for RegulatorUK

Hi BigJock

I agree!

"Once avacta get the CE mark, which they will, "

They'd better hurry up. They've been telling shareholders for the last year that they're 'almost there' and yet they still haven't completed clinical trials...

“ Thanks regulator -That was my thought also.

Thinking about the contract length. Could it be a year. The £374m would appear on the low side for 204m antigen tests over 2 years. I appreciate 2m p/w capcity may not be reserved for govt or for this test in its entirety.

I presume the contract (albeit redacted) will be published in coming days?”

I think it’s probably a year. The redacted Contract should have been published with the CAN but we know DHSC aren’t following the rules. I expect the CAN will be updated in coming days with a link to the actual Contract.

Is that there appears, in section II.1.7 of the Contract Award Notice ( https://www.find-tender.service.gov.uk/Notice/005133-2021?origin=SearchResults&p=1 ), to be a minimum Contract value of £50m quoted. This is unusual in this sort of Contract.

It would suggest to me (and I accept I could be wrong) that Omega have negotiated to cover off the additional costs of increasing capacity at Alva and the potential lost revenue of guaranteeing the Government capacity. Nice move.

"Avacta is up 1.2%"

Who cares? This is the ODX board...

"Is the 347m for a quarter I'm struggling to find details of length of contract etc"

No - it's the potential maximum value of the Contract over the lifetime of the Contract. The OP on this thread misunderstood the Contract Award Notice.

What we don't know is how long the Contract is. As an educated guess, I'd think 1 or 2 years.

"So ODX's contract gets assessed quarterly and the other 2 manufacturers get a much longer contract and fixed contract income. Appears out of the 3 chosen manufacturers, ODX gets treated like the runt of the litter and will be used ad hoc."

No - that's not what is happening. If, for example, you look at the Surescreen Contract (https://www.find-tender.service.gov.uk/Notice/002984-2021?origin=SearchResults&p=1 ) similar wording is used:

"The Value of Contract (inc. any possible extensions, exc. VAT) stated in this Contract Award Notice is not a committed value for the contract. Volumes supplied via this contract are forecast quarterly. The stated Value of Contract (inc. any possible extensions, exc. VAT) is an estimate based on projected volumes in the event that all potential contract extensions are enacted."

"Those suggesting our contract is less than Sure screen.... theirs was 2 years.... to compare apples with apples you'll need to double ours.... you're welcome :-))"

We don't know how long our Contract is for as that information hasn't been published. So you can't assume it is a year.

If they were of the same length, I would expect Surescreen's Contract to possibly be worth more that Omega's.

Omega's contract is purely about manufacturing capacity. Surescreen is supplying its own test and the Contract will include the value of the IP behind that.

"Starbright-
The Company notes that under UK Government Public Sector contract disclosure rules this number necessarily represents a maximum of the potential value of the contract and care should be taken not to use this number as an estimate or forecast of the actual likely value of purchase orders to be received by the Company for the production of COVID-19 lateral flow antigen tests.

If you then go back to the master contract anouncement it has multiple companies invloved, hence above careful wording by CK. Likewise due to uncertainty of the govt test selection, CK previously advised that we will prodcue any tests the govt selects."

Sorry - you're misunderstanding the position and incorrectly conflating irrelevant items.

The Framework (the Dynamic Purchasing System) has a number of suppliers on it. The Framework is not a supply Contract.

What was published yesterday was a Contract Award Notice for a supply Contract under the Framework.

The £374m supply Contract clearly states that it relates solely to Omega Diagnostics. The Contract does not relate to any other supplier.

As I pointed out earlier, and Omega makes clear in the RNS, the £374m is the maximum potential value of the Contract to Omega (and just Omega) over the lifetime of the Contract. However, this is not a Contract for a fixed volume, so the actual value could be less (a minimum of £50m).

Those are the facts.

"Odx has clearly stated not to use the numbers as being solely applicable to ODX. The main contracts has multiple companies involved. Hence CK wording. Cant believe no one believes in a free market, especially CK!"

Where has it said that? Certainly not in the RNS...

"if he had been unaware of us finding the tender the rns would not have been released."

Says who? There would have been a requirement to publish an RNS anyway, as the publication of a Contract Award Notice with a potential value of £374m, which names Omega Diagnostics, is in and of itself likely to impact the share price.

"Disagree Regulator, as it was not specific to any company. CK had no cause to RNS period."

So you're saying the publication of a £374m Contract Award Notice, which names Omega Diagnostics (and Omega Diagnostics alone) , is not "specific to any company"?

Really!?!?

"Does not intervention by YOU CK!!!! ODX HAD NO CAUSE FOR THIS RNS. MUM WAS THE BEST OPTION. As it it was governmental info, no specific to any Company. So why the heck did you do this CK!!"

Omega had to publish an RNS. The government has published a significant Contract Award Notice quoting significant monetary value which, in and of itself, could materially impact the share price. Moreover, people were misinterpreting the CAN (plenty of examples on this bulletin board) and Omega has an obligation to provide clarity.

"Dont understand why the RNS is so NEGATIVE after all these weeks of waiting to confirm actual gov contract. Why Colin K is putting ODX down?"

It's not and he's not. It's people misunderstanding the Contract Award Notice, getting overexcited and making daft claims, and Omega then has to inject a dose of realism.

"Why would the government release the contract and amount if it didn't know whats coming Joker"

Because it's required to by law and it's just had its arse handed to it on a plate in the High Court for not doing so?

"@ Kenirogas

Volumes supplied via this contract are
forecast quarterly.

347000000 is for forecast quarterly. so 1.4 billion is for the whole year."

No, it's not. You're misunderstanding what the Contract Award Notice is saying. The £374m is the maximum value of the Contract over the whole of it's lifetime - including any extensions/renewals (which are not permitted under this Contract). What we don't know is how long the Contract is for as

The reference to 'forecast quarterly' is standard boilerplate wording which indicates this isn't a fixed volume Contract but one where demand will assessed/adjusted quarterly.

It's clear that this misunderstanding is partly why ODX have worded this morning's RNS as they have. This is excellent news for Omega but there's no need to overegg it.

Oh - and who was it who was telling me I was wrong about the time limits, as they don't publish notices on non-working days?

Floreat Omega and well done LTH!

"Not nice Regs."

It wasn't. Luckily I was back in the UK when it manifested and the paramedics asked the right questions, which meant I was taken to an A&E unit that was further away but had staff who were used to dealing with malaria.

I spent a month in isolation and then another recovering before heading back out to Zaire.

Lots of CANs for old contracts published today, I note. Including several of that may be of interest to the anti-corruption lot...

"https://twitter.com/Deano10233716/status/1370403671926841355/photo/1 "

I can't see any CAN posted - and I've got alerts up on the main portals.

"... warming climates will bring all the dieseases up from the south - wasn't that long ago the UK, Europe had malaria, everything goes around in a circle."

There's already some evidence that malaria's gaining a foothold in parts of north Africa and southern Europe.

I caught encephalitic malaria when I was working in Zaire. Not nice at all...