By Michael Susin

 

Omega Diagnostics Group PLC shares plunged 26% on Friday morning after it said that the U.K. Department of Health and Social Care requested a repayment of 2.5 million pounds ($3.3 million), because the company failed to advance to Phase 2 of a Covid-19 test-manufacturing contract.

The London-listed medical-diagnostics company said it doesn't believe that is required to refund the pre-production payment and will continue to take legal advice.

The contract expiration occurred "due to the lack of confirmation from the DHSC regarding which test they required" Omega said.

"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 [as well as]... bringing on the additional staff required to be able to supply the DHSC using our UK-based volume manufacturing services," it said.

DHSC wasn't immediately available for comment.

Shares at 1009 GMT were down 8.50 pence at 24 pence.

 

Write to Michael Susin at michael.susin@wsj.com

 

(END) Dow Jones Newswires

December 10, 2021 05:53 ET (10:53 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
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