78% fall in revenues for medical tests manufacturer
York-based medical tests developer, Abingdon Health, has seen its revenues fall 78% to £1.7m (2020: £7.7m) in its its unaudited interim results for the six months ended 31 December 2021.
The company’s contract with the Government’s Department for Health and Social Security (DHSC) for the supply of AbC-19™ tests forms a substantial portion of this slump in revenue for the period. £4.4m in the prior period related to AbC-19™ sales to DHSC and £1.7m related to other COVID-19 related non-recurring revenues.
It is still waiting to be paid £8.4m by the Department for Health and Social Care despite agreeing non-binding Heads of Agreement through mediation nearly four months ago.
Abingdon has also recorded an adjusted operating loss of £4.8m (2020: adjusted operating loss of £0.1m), while like-for-like contract manufacturing revenue (excluding COVID-19 related contracts) fell 15.2% to £1m (2020: £1.2m).
Chris Yates, CEO, said: “Our focus remains on providing our customers with a first-class lateral flow contract development and manufacturing service.
“We have invested significantly in our operational infrastructure over the past 18 months and more importantly we have advanced our technical capability in developing, transferring and manufacturing lateral flow tests across an increasingly diverse range of use cases.
“We believe we are uniquely positioned in Europe to provide prospective customers with an efficient and expert technical transfer service to transition their lateral flow products into manufacture.”
The business has also struck agreements with two companies for the development of lateral flow tests.
These include a memorandum of understanding with DeepVerge plc for the development, manufacture and commercialisation of lateral flow tests for DeepVerge’s Modern Water and Life Science divisions.
Modern Water is the environmental division of DeepVerge that has developed and commercialised technology focused on monitoring of contaminated water and decontamination of wastewater.
And Abingdon has signed a memorandum of understanding with Vatic for the development, manufacture and commercialisation of lateral flow self-tests in the area of infectious diseases – with an initial focus on influenza.
Abingdon and Vatic intend to enter into a longer-term commercial agreement, with both parties developing infectious disease tests, Abingdon exclusively manufacturing these tests and both parties collaborating on the commercialisation of these new products.
