TIDMODX

RNS Number : 2678V

Omega Diagnostics Group PLC

10 December 2021

OMEGA DIAGNOSTICS GROUP PLC

("Omega" or the "Company" or the "Group")

DHSC contract update

Omega (AIM: ODX), the specialist medical diagnostics company focused on industry-leading Global Health (CD4 and COVID-19) and Health and Nutrition products, provides an update in relation to the Company's contract with the Department of Health and Social Care ("DHSC") to provide manufacturing capacity for COVID-19 lateral flow antigen tests. As previously disclosed, the DHSC was unable to move into Phase 2 of the contract, which would have seen Omega progress to manufacturing tests using Government-furnished equipment.

Omega has received confirmation from the DHSC that they acknowledge that the contract expired on 1 October 2021 and a request that Omega submit a proposal for the repayment of the pre-production payment of GBP2.5m (net of VAT).

The Board of Omega, having taken initial legal advice, do not believe that the Company is required to repay the pre-production payment and will respond in writing as requested. The Board will continue to take further legal advice on this matter and hopes to reach a resolution swiftly.

Colin King, CEO, Omega Diagnostics, said: "It is clearly disappointing to receive this request for repayment given the efforts we have gone to ensure manufacturing capacity for COVID-19 lateral flow test was available for the DHSC and that we did not progress to Phase 2 of the contract due to the lack of confirmation from the DHSC regarding which test they require us to manufacture.

"Acting in good faith we used these pre-production payments, along with our own funds, to upgrade our manufacturing facilities to be able to integrate the Government-furnished equipment and bringing on the additional staff required to be able to supply the DHSC using our UK-based volume manufacturing services. We therefore are confident that, having sought legal advice, we will not be required to make this repayment."

Contacts:

 
  Omega Diagnostics Group PLC                                         www.omegadx.com 
  Colin King, Chief Executive Officer                                 via Walbrook PR 
  Chris Lea, Chief Financial Officer 
 
  finnCap Ltd                                                      Tel: 020 7220 0500 
  Geoff Nash/Edward Whiley (Corporate 
   Finance) 
  Alice Lane/ Charlotte Sutcliffe 
   (ECM) 
 
  Walbrook PR Limited                      Tel: 020 7933 8780 or omega@walbrookpr.com 
  Paul McManus                                                     Mob: 07980 541 893 
  Lianne Applegarth                                                Mob: 07584 391 303 
  Sam Allen                                                        Mob: 07502 558 258 
 
 

About Omega Diagnostics Group PLC

Omega manufactures and distributes high quality in-vitro diagnostic products for use in hospitals, clinics, laboratories and healthcare practitioners in over 75 countries and specialise in the areas of health and nutrition and global health.

www.omegadx.com

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

CNTURUKRANUUARA

(END) Dow Jones Newswires

December 10, 2021 04:29 ET (09:29 GMT)

Omega Diagnostics (LSE:ODX)
Gráfica de Acción Histórica
De Abr 2022 a May 2022 Haga Click aquí para más Gráficas Omega Diagnostics.
Omega Diagnostics (LSE:ODX)
Gráfica de Acción Histórica
De May 2021 a May 2022 Haga Click aquí para más Gráficas Omega Diagnostics.