Novacyt Revenues Full Year 2016
January 24 2017 - 1:00AM
Business Wire
Delivers consolidated sales growth of
25%
NOVAprep® sales increase 24%
Group reiterates positive outlook
Regulatory News:
Novacyt (ALTERNEXT:ALNOV), an international specialist in
clinical diagnostics, today announces its unaudited revenues for
the full year to December 2016.
In 2016, Novacyt made significant progress in its goal to
transform the company into a multi-platform, global clinical
diagnostics company. In particular, the acquisition of Primerdesign
Ltd in May 2016 marked the company’s entry into the fast growing
molecular diagnostics market. As a result, Novacyt has again
delivered strong double-digit consolidated sales growth.
Financial highlights
- Consolidated Group sales increased 25%
to €11.1m compared with €8.9m in 2015
- At constant exchange rates (CER) the
growth in 2016 represented 38%1
- Second half FY2016 Group consolidated
revenue increased 47% to €6.1m from €4.2m in H2 2015, representing
a 68% increase at CER
- During 2016, the company raised €8.1m
in cash from well supported equity rounds and €3.0m in new bonds
from Kreos Capital. Novacyt finishes the year with €2.9m in
cash
Divisional revenues
- Full year NOVAprep® sales increased 24%
to €1.6m despite the negative impact of the timing of a shipment of
various orders due to a supply chain issue. As a result, orders
totalling €346k will now be shipped in 2017
- NOVAprep® sales in Asia Pacific
delivered 116% growth during 2016, making it the fastest growing
region, followed by Eastern Europe and the Middle East, which both
delivered over 60% growth
- NOVAprep® sales in France declined 7%
during the transition of direct sales to indirect sales with the
appointment of MM France in the second half 2016
- Primerdesign full year sales (on a pro
forma basis) were £4.2m (€5.1m) compared with £3.9m (€5.3m) in the
prior year, giving 8% growth at CER, driven by strong core growth
of 71% in South America, 67% in Asia Pacific and 28% in North
America. These increases were partially offset by a reduction in
B2B revenues due to focusing R&D on the development of
Novacyt’s pipeline
- Lab21 revenues grew 7% CER in the
second half of 2016, compared with the first half of the year,
including 10% growth in product sales. For the full year 2016,
Lab21 revenues were £5.0m (€6.2m), an overall decrease of 8%
year-on-year at CER, in line with expectations. The growth during
2016 has been driven by the launch of new products and entry into
new territories, more than off-setting the continued weak overseas
tender business, which has slowed due to the delays in awarding
outstanding tenders from a number of oil-producing regions
Operational highlights
- NOVAprep® launched in new markets
including Turkey, Qatar, Israel, Malaysia and Australia
- Further investments made in the
successful MDL Asia partnership increasing Novacyt’s direct
presences in this strategically important region
- Restructuring of the French commercial
operations has proceeded well, with the Group’s new distribution
partner MM France resulting in anticipated cost savings of
€0.9m
- Primerdesign moved into high quality
development and manufacturing facilities to support significant
growth over the next five years
- Lab21 products launched in Brazil for
the first time through a new manufacturing partnership with the
potential to deliver significant sales in 2017
- Lab21 launched 10 new CE Marked
infectious disease products to complement the existing portfolio
and drive sales growth in the second half of 2016 and into
2017
Graham Mullis, Group CEO of Novacyt, commented:
“I am pleased to report continued strong sales growth in 2016
and to see the positive impact that the Primerdesign acquisition is
already having on the business as well as validating our M&A
strategy. The investments in our NOVAprep® commercial
infrastructure last year helped deliver 24% growth in 2016 against
a strong 2015. In 2017, we plan to invest in R&D and commercial
infrastructure at Primerdesign to drive sustainable growth of high
gross margin molecular products which will continue to help
transform the financial performance of the Group. With Lab21
product growth of 10% in the second half of 2016 compared to the
first half and the launch of new products through the Lab21
distribution channel, we expect to help smooth the future effects
of the unpredictability inherent in the tender business.
“We are starting 2017 with momentum in NOVAprep® sales, an
encouraging sales order book and Primerdesign well integrated into
the business with a clear growth strategy. With continued sales
growth and improving gross margins we are aiming to move into
profitable trading during 2017 to create a strong basis for future
growth.”
Current trading and outlook
During 2017, the Group will continue to build on the progress
made in 2016 against its three strategic pillars of commercial
expansion, acquisitions and product pipeline development. Novacyt
is on track against all three strategic pillars and is on track
with the development of its first three infectious disease assays:
a broad spectrum human papilloma virus (HPV); Zika virus and a
multiplex assay that differentiates between the Zika, dengue and
chikungunya viruses.
Overall, Novacyt continues to expect further strong commercial
growth in NOVAprep® and Primerdesign products which is expected to
drive further shareholder value. In 2017, Novacyt expects:
- To launch NOVAprep® in key markets of
South America once registrations are complete through the
partnership with Cepheid Inc, a leading molecular diagnostics
company focused on HPV markets
- To remain on track to announce its
plans for seeking US Food and Drug Administration (FDA) approval in
early 2017 for NOVAprep®
- To continue to investment significantly
Primerdesign’s commercial infrastructure in order to support its
expansion into clinical diagnostic markets. The first of several
senior commercial roles has been appointed and is expected to start
in early 2017
Novacyt will release further details on the Group’s 2016
performance when the audited full year results are disclosed.
Novacyt will also update shareholders regarding its previously
disclosed intention to list on the UK’s Alternative Investment
Market (“AIM”) in addition to its current listing on the Paris
Alternext market as the company seeks to increase its international
profile and presence.
Key dates for the company’s results disclosure include:
-- Full year 2016 results
27th April 2017
-- AGM for 2016 results
29th June 2017
-- Half-year 2017 revenue
20th July 2017
-- Half-year 2017 results
26th October 2017
About Novacyt Group
The Novacyt Group is a leader in the field of cellular
diagnostics with a growing portfolio of cancer and infectious
disease products and services. Through its proprietary technology
platform NovaPrep® and molecular platform, genesig® Novacyt is able
to provide an extensive range of oncology and infectious disease
diagnostic products across an extensive international distributor
network. The Group has diversified sales from diagnostic reagents
used in oncology, microbiology, haematology and serology markets,
and its global customers and partners include major
corporates.
For more information please refer to the website:
www.novacyt.com
1 The acquisition of Primerdesign was completed May 2016 and the
total Group consolidated revenues include Primerdesign from 1 May
2016
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version on businesswire.com: http://www.businesswire.com/news/home/20170123006142/en/
InternationalFTI ConsultingBrett Pollard / Victoria
Foster Mitchell+44 (0)20 3727 1000brett.pollard@fticonsulting.com /
victoria.fostermitchell@fticonsulting.comorFranceFTI
ConsultingArnaud de Cheffontaines / Astrid Villette+33 (0)147 03 69
47 / +33 (0)147 03 69 51arnaud.decheffontaines@fticonsulting.com /
astrid.villette@fticonsulting.comorNOVACYTGraham Mullis, +44
(0)7901 514 121Chief Executive Officergraham.mullis@novacyt.com
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