France's Novacyt H1 revenue rises on Southern Cross Diagnostics acquisition

Overview

• France molecular diagnostics firm's H1 revenue rose 18% yr/yr to £11.6m

• Gross margin fell to 56% from 66%, mainly due to SCD acquisition and lower Primer Design sales

Outlook

• Novacyt expects continued organic revenue growth in H2, driven by Instrumentation and Clinical portfolios

• Company anticipates further opex reductions in H2, with full annualised benefit seen in 2027

• Novacyt expects Research Use Only segment buying patterns to normalise and uplift sales in H2

Result Drivers

• SCD ACQUISITION - Revenue growth was partly driven by the acquisition of Southern Cross Diagnostics, which contributed £1.8m in sales but diluted group gross margin due to lower distributor margins and a stock uplift adjustment

• CLINICAL SEGMENT GROWTH - The Clinical segment delivered over 20% year-on-year revenue growth, driven by demand for reproductive health products and inclusion of SCD sales

• INSTRUMENTATION DEMAND - Instrumentation segment revenue grew about 30% year-on-year, reflecting continued market adoption of the LightBench Discover platform

Company press release:

Key Details

Reuters Recommended Reads

• Sept 29 - France's LightOn H1 revenue jumps 51% on higher Paradigm license sales

• Sept 28 - France's Genfit H1 revenue falls due to absence of milestone payments

• Sept 29 - France's GenSight Biologics H1 net loss widens on higher R&D expenses

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)