1st Apr 2022 07:53
(Alliance News) - Oxford Nanopore Technologies PLC on Friday said it reached an "amicable" agreement with the UK government over a contract dispute related to the supply of Covid-19 testing services.
The contract, sealed at the end of July 2020, was for the provision of LamPORE devices and testing kits to the UK Department of Health & Social Care.
Oxford Nanopore will receive a GBP50 million payment as part of the resolution of the dispute.
The amount will be treated as "non-recurring Covid-19 testing revenue" for 2022. As a result, its guidance for its Life Science Research Tools remains unchanged.
In its annual results reported in March, Oxford Nanopore said it had concluded its Covid-19 diagnostics offerings, due to the greater availability of PCR tests and as the pandemic moved "towards an endemic phase". At the time, it said a deal with the DHSC had concluded.
For 2022, Oxford Nanopore expects Life Science Research Tools revenue of between GBP145 million and GBP160 million, at best, up by over a quarter from 2021. This is tipped to rise further to between GBP190 million to GBP220 million in 2023.
Shares in the company were 1.4% lower at 392.54 pence each in London on Friday morning.
By Eric Cunha; [email protected]
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