Well overcooked10 Apr 2021 19:01
On 29 January 2021 shares fell around 11% whe disappointment the company didn’t announce an extension to its contract with the Department for Health and Social Care. As well as securing two contracts with the DHSC, Novacyt is supplying Covid-19 products to non-government organisations and has expanded its global presence. Aside from the UK, the firm’s biggest markets are the Middle East, Germany and the US.
At the time Novacyt said demand for its products remained strong so far in 2021 and was expected to remain so throughout the rest of the year with the conversion of new opportunities including several new product launches.
On Wednesday 24th February shares gained 6% to 725p following an update on its research and development (R&D) activities and strong new product pipelines.
Fridays news was therefore partly priced in from the January announcement and certainly (in my opinion) did not warrant such a substantial drop when some many other contracts / markets / opportunities exist.
Expecting a decent bounce and then we can get back to business and the exciting times ahead.