RE: Sp Could fly next week31 Oct 2020 12:00
Find reading and researching this rns from 17th September ,so much information even in this of rns in my opinion
Next stage of growth
The Directors have identified specific growth opportunities in the large, fast-growing diagnostics market. Supported by its core clinical diagnostics capabilities of IVD product development, manufacturing, regulatory and commercialisation, the Company remains committed to creating shareholder value through its three-pillar strategy of organic, R&D and acquisitive growth, which will be focused within the respiratory and transplant bacterial and viral diagnostic markets.
Respiratory and transplant are both high-margin, fast-growing IVD markets where the Company already has expertise, including COVID-19 and EBV and BKV products launched last year. Novacyt intends to leverage the new customers and brand position it has established during the COVID-19 pandemic to further penetrate these markets through 2021 and beyond. Importantly, Novacyt will use the skills, infrastructure and experience of both its business divisions (Primerdesign and Lab21) to deliver solutions that utilise the Group's protein and molecular diagnostic capabilities.
The growth strategy aims to enable Novacyt to continue to grow the size of the core business but also to accelerate this through strategic acquisitions. The Directors believe the strong demand for COVID-19 diagnostic testing will continue through the next few months and well into next year, which will underpin the ongoing financial transformation of the Group and its trajectory towards becoming a market leader in respiratory and transplant clinical diagnostics.
The Company intends to invest both organically and through M&A in establishing a direct sales force in certain markets. Novacyt plans to establish a strong commercial infrastructure in the UK, where a significant investment in the diagnostics market is taking place. In addition, it is in the process of evaluating the best model to operate in the US, the world's largest IVD market. It is also considering certain key mainland European markets. In the rest of the world, Novacyt will continue to develop its successful distributor and partnership sales model.
Novacyt has demonstrated during the last six months the financial value and profitability it can generate in the right clinical IVD markets with a low-cost base. To achieve additional revenue, the Company will continue to invest in R&D to drive new product development. Novacyt also plans to accelerate revenues and additional profitability through selective and accretive acquisitions. These actions are expected to replace any potential lost revenues from a future decline in COVID-19 testing.
Market dynamics to support strategy
The focus on the importance of diagnostics, as a result of the COVID-19 pandemic, is leading to increased opportunities and anticipated significant new investment in the sector.
IVD market
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