Omicron test success raises Omega Diagnostics (ODX) stock 6%
11:16, 14 December 2021
Stock in Omega Diagnostics rose more 6% this morning after it announced that its Covid-19 antigen test can detect the Omicron variant with high accuracy.
Colin King, CEO of the specialist medical diagnostics company, said: “We are very pleased be in a position to confirm that the Visitect Covid-19 antigen test is able to equally detect the Omicron variant, as well as other existing variants.
“We remain encouraged by emerging commercial opportunities for our Visitect Covid-19 antigen test that we expect to be unlocked following relevant approval under [Coronavirus Test Device Approvals] CTDA regulations and CE-marking for home-use.
Rebound after share price fall
The slight rebound comes after Omega Diagnostics’ stock plunged 26% last week after it admitted that the UK Department for Health and Social Care (DHSC) had requested a repayment of £2.5m ($3.3m) as it was unable to move Omega Diagnostics into Phase 2 of a contract.
Under the deal, Omega Diagnostics was meant to provide manufacturing capacity for Covid-19 lateral flow antigen tests. Phase 2 would have seen Omega progress to manufacturing tests using government-furnished equipment.
The contract, however, expired on 1 October 2021 and the DHSC requested that Omega submits a proposal for the repayment of the pre-production payment of £2.5m (net of VAT).
The board of Omega said it was consulting with legal advisers following the DHSC’s request and that it would respond in writing.
King said last week: “It is clearly disappointing to receive this request for repayment given the efforts we have gone to ensure manufacturing capacity for Covid-19 lateral flow test was available for the DHSC and that we did not progress to Phase 2 of the contract due to the lack of confirmation from the DHSC regarding which test they require us to manufacture.
“Acting in good faith we used these pre-production payments, along with our own funds, to upgrade our manufacturing facilities to be able to integrate the government-furnished equipment and bringing on the additional staff required to be able to supply the DHSC using our UK-based volume manufacturing services. We therefore are confident that, having sought legal advice, we will not be required to make this repayment.”
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