Lateral flow test manufacturer looks to put Covid behind it
Lateral flow test manufacturer Abingdon Health is to shift its focus from Covid-19 and Government contracts to the long-term opportunities in the lateral flow self-test market.
The pandemic has been a transformational but bruising experience for the Yorkshire business, which had to take legal action against the Government for unpaid invoices.
It is still waiting to be paid more than £8m by the Department for Health and Social Care despite agreeing non-binding Heads of Agreement through mediation nearly four months ago.
Abingdon Health floated in December 2020 at 96p-per-share, raising £22m as it listed on the Alternative Investment Market (AIM). But its shares have been in steady decline for a year, and by last night’s close at 11.2p it had lost nearly 90% of its value.
Chris Yates, chief executive of Abingdon Health, said: “The Covid-19 market for lateral flow tests has been unpredictable against the constantly evolving pandemic situation.
“In the UK, the Covid-19 antigen test market has been dominated by overseas manufacturers and there has been no Government support to date for COVID-19 antibody testing.
“Although it still remains an opportunity for the business, it is clear that we can no longer rely on the Covid-19 market to meet our growth plans.”
Abingdon Health will focus on three areas – contract service, a self-test e-commerce site, and new product development.
It is seeking other opportunities for lateral flow tests and is currently working with two companies in the fields of fertility testing and environmental monitoring.
It plans to launch an “enhanced version” of its online store in the second quarter of the year with the ambition of it becoming a “one-stop shop” for consumers to purchase lateral flow tests across a range of indications.
Abingdon has “made good initial progress” in developing its own self-tests with an initial focus on influenza, lyme disease and hepatitis C.
Abingdon raised £6.1m, net of fees, in December 2021 in a fundraising which saw Yates and chairman Dr Chris Hand commit £500,000.
The company had £5.9m cash at December 31 and it believes that cash balances are sufficient to meet the company’s current requirements, “with a range of mitigating actions available to conserve cash if needed”.
Chris Yates will join Prof Janet Hemingway and BiVictriX Therapeutics chief executive Tiffany Thorn at an innovation in life sciences session at Invest North 2022 this afternoon.
The full-day virtual conference takes place today and covers international trade, place, the war on talent, funding and investment, and innovation.
