Omega Diagnostics flags increase sales but Covid revenue expected to be ‘minimal’

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In a business update to investors, the company said it expects to report a 41% rise in full-year revenue to £12.3m, compared to the previous year, its healthcare division and nutrition contributing £8.6m in revenue, up from £6.8m.

The group’s global health division saw “substantial growth” in the period, up 97% to £3.8m, with increased revenue from its CD4 kits.

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The bosses noted that further progress has been made to implement CD4 testing in countries with high HIV prevalence, while demand from aid agencies and nongovernmental organizations continues to grow.

Omega Diagnostics’ Visitect CD4 product allows people living with HIV to test their immune system.

Covid-19 related revenue contributed £2.6m, up from £1.7m, but ongoing Covid revenue is expected to be minimal.

Omega said it remains in dispute with the UK Department of Health and Social Care and has not yet received a response to its last correspondence, sent on February 8. At the company’s request, the department is arranging to remove government-funded equipment from the company’s Alva site.

The company said it has signed a sale and purchase agreement with Accubio, a wholly owned subsidiary of Zhejiang Orient Gene Biotech, for the Alva deal, for cash consideration of approximately £1 million.

Omega, which will seek to relocate some production to a new factory being built in Ely, Cambridgeshire, said losses were largely incurred following its dispute with the Department of Health and Business social concerns regarding the authorization of its Covid-19 antigen test kits.

The manufacturing business is sold as a going concern with 109 full-time Alva-based employees transferring with the business.

The assignment agreement also includes the sale of certain fixed assets, including plant and equipment, excluding state-funded equipment at the site, as well as the assignment of the lease of the Alva facility. .

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Covid test kit maker Omega will sell Scottish facility employing more than 100…

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