NEW YORK — Novacyt on Monday reported a 906 percent year-over-year increase in unaudited revenues for the first half of 2020, driven by strong demand for COVID-19 testing.
For the six months ended 30 June, the Paris-based company reported unaudited revenues of €72.4 million ($82 million) compared to €7.2 million for the first half of 2019. The firm said it booked 91 percent of the revenues in the second quarter.
As of June 30, the company’s cash position was €20 million. Its strong cash position follows a significant investment to meet continued demand for its COVID-19 test expected in the second half of the year, the firm said.
Novacyt also reported that it is debt free for the first time in its history after paying down all outstanding debt.
The company said that the spike in year-over-year revenue growth follows the development and launch of its molecular test for COVID-19 in January.
Demand for the company’s COVID-19 test remains strong, the firm said, with June sales of €25.4 million. Certain contracts for the supply of the test have been extended into the second half of the year and in some cases into 2021, Novacyt said.
In the US, the company has signed a distribution agreement for its COVID-19 test with an undisclosed strategic partner. The firm said that the US is delivering significant sales and this new agreement enables it to accelerate penetration of its COVID-19 test. The distribution agreement will focus initially on the US and has the potential to expand into further markets.
The company said it has enough manufacturing capacity, raw materials, and finished goods to meet the expected demand for COVID-19 testing. It continues to scale the business internally, has hired 45 people during the first half of the year, and has plans to make further investments to strengthen the organization in the second half of the year.
Novacyt noted that it has launched three new products, COVID-HT, Exsig Direct, and Exsig Mag to support laboratories testing for COVID-19. The products are expected to drive incremental revenue, and the company received initial orders in June following their launch.
The US Food and Drug Administration in March granted Emergency Use Authorization for Novacyt's SARS-CoV-2 test developed by Primerdesign, the company's UK-based molecular diagnostics division.
Novacyt said that given the visibility of orders, extended contracts, and the launch of new COVID-19 related products, it anticipates revenue for the second half of the year to be greater than the first half of the year and margins to be at least at a similar level.