Omega Diagnostics has looked to appease shareholders with an update that shows some signs of progress but also confirmed that progress has not been as swift as anticipated.
The diagnostics specialist today revealed that it is taking longer than expected for the DHSC to select a suitable COVID-19 lateral flow antigen test to put through its production line, however they still remain in ‘regular dialogue’ and the supply of British produced tests remain a priority for the DHSC.
Eagle-eyed investors will also hope signs of a material contract award are nearing as Omega added that initial commercial discussions between itself and ‘potential partner companies’ for the production of lateral flow antigen tests have been initiated by the DHSC.
This news came as Omega revealed that it has received £2.5m in pre-production payments from the Government and is supporting it in various ways currently including with pouching services for other COVID-19 tests in circulation within the UK.
As the Omega Diagnostics share price fell by nearly 5 percent in early morning trading, CEO Colin King reaffirmed a view that the business is ready and waiting to produce whatever test the DHSC selects and in a great deal of volume:
“Whilst confirmation from the DHSC of which test to produce has taken longer than we had expected, we are confident that we have the capacity to produce significant volumes of tests once we receive the requisite confirmation from DHSC. Obviously as soon as this is confirmed we will update shareholders.”