19 Oct 2020 07:00
OMEGA DIAGNOSTICS GROUP PLC
("Omega" or the "Company" or the "Group")
UK-RTC contract for the Supply of Goods
Agreed terms for the supply of goods by consortium members to fulfil UK Government orders
Agreement also extends to the supply of other third-party customers, if permitted
Omega (AIM: ODX), the medical diagnostics company focused on CD4, infectious diseases and food intolerance, announces that it has signed a contract with Abingdon Health, the UK Rapid Test Consortium ("UK-RTC") lead, which sets out the terms of the supply of goods from UK-RTC members to Abingdon Health. This follows the UK Government's initial order of one million COVID-19 lateral flow antibody tests (the "AbC-19™ Rapid test").
The UK-RTC contract formalises the agreement among UK-RTC members and Abingdon Health, in order for Abingdon Health to supply AbC-19™ Rapid tests to the Department of Health and Social Care (DHSC). On 6 October 2020, the UK Government entered into a contract with Abingdon Health, on behalf of the UK-RTC, for the supply of the AbC-19TM Rapid Antibody tests. As part of the contract, the UK Government placed its first order for one million units.
In addition, should the DHSC allow the supply of AbC-19™ Rapid tests to third party customers, the terms of this contract will apply between the consortium members.
Under the agreement, Abingdon Health will undertake its own manufacturing with Omega and BBI Solutions Ltd also manufacturing and supplying AbC-19™ Rapid tests to Abingdon Health. CIGA Healthcare Ltd will carry out assembly services. Omega will manufacture not less than 25% of the demand from total orders placed, either from the UK Government or, where allowed, third party customers.
Pricing of the tests is confidential, however Omega expects to receive revenue per test which is slightly ahead of market expectations as outlined in 22 June 2020 analyst forecasts:
http://www.omegadiagnostics.com/Investor-Relations/finnCap-Research
Omega's production capacity for AbC-19™ Rapid tests is currently 100,000 tests a week and the Company expects this to reach 200,000 tests by the end of November.
The UK-RTC continues to liaise with the MHRA regarding approval for self-test home use and will provide an update as this progresses.
Colin King, CEO of Omega, commented: "We are very pleased to formalise the terms of our manufacturing and supply role within the UK-RTC. The pricing model, whilst confidential, is slightly ahead of market expectations and there is the potential to create additional value by making the test available to third parties beyond the UK Government. Should that option be made available to us the UK Government maintains first right of refusal. We look forward to playing our part in fulfilling the UK Government's initial order and will look to update investors on further orders as they come through."
The information communicated in this announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.
Contacts:
Omega Diagnostics Group PLC | Tel: 01259 763 030 |
Bill Rhodes, Interim Non-Executive Chairman Colin King, Chief Executive | www.omegadiagnostics.com |
Kieron Harbinson, Group Finance Director | |
finnCap Ltd | Tel: 020 7220 0500 |
Geoff Nash/Teddy Whiley (Corporate Finance) | |
Alice Lane (ECM) | |
Walbrook PR Limited | Tel: 020 7933 8780 or omega@walbrookpr.com |
Paul McManus | Mob: 07980 541 893 |
Lianne Cawthorne | Mob: 07584 391 303 |
About the UK-RTC
The UK-Rapid Test Consortium was set up by Abingdon Health to bring together scientists and medical technology manufacturers to be able to deliver millions of test kits as quickly as possible. By working together, some of the UK's leading medical technology companies will deliver more volume more quickly to help fight Covid-19.
The UK Government supported the setup of the UK Rapid Testing Consortium and invested in the development of the rapid antibody tests.
The UK-RTC comprises Abingdon Health, the University of Oxford, Omega Diagnostics, BBI Solutions and CIGA Healthcare.