Novacyt Revenues Full Year 2015

Novacyt (ALTERNEXT: ALNOV), an international specialist in cancer and infectious disease diagnostics, today announces its unaudited revenues for the full year to December 2015.

2015 marks the first full financial year of Lab21 and Novacyt following the merger in 2014. In that time, significant investment in commercial infrastructure has delivered 30% revenue growth of NOVAprep® in new key markets. Revenue growth momentum increased in the second half of 2015 to 44% and management expects the momentum in this NOVAprep® sales growth to continue into 2016 and beyond.

The key revenue highlights for 2015 are summarized below.

Revenue highlights

• Consolidated Group sales for 2015 were €8.9m compared with €4.5m in 2014, representing 98% growth*
• On a Pro forma basis sales of the Group for 2015 were €8.9m vs €7.8m in 2014, representing 14% growth.

Divisional revenues

• Lab21 sales increased 12% compared with 2014 to €7.6m. Growth slowed in H2 due to large tenders not being awarded in time for revenues to be shipped but the first of these orders have now been received and the benefit of these tender awards will occur in 2016.
• NOVAprep® sales of €1.3m showed significant growth of 30% compared with 2014. A strong second half delivered 44% compared with the same period in 2014.
• International sales of NOVAprep® returned growth of 57% to 101% in certain regions, with Asia Pacific giving the greatest growth as a result of a new distribution agreement with Leica Biosystems.
• Successfully launched NOVAprep® in a number of new countries including China, Spain, Italy, Sweden, Austria, Belorussia and certain African countries.

Operational highlights

• Major five-year distribution agreement signed with Leica Biosystems for the Chinese market for its NOVAprep® technology, with the initial launch occurring in the last two months of the year.
• Major collaboration agreement signed with Abbott to validate the use of the NOVAprep® vial and medium with its real-time HPV assay, potentially expanding the market opportunities for the NOVAprep® technology.
• Funds of €8.0m raised during the year to support the expansion and growth plans of the business, including the repayment of debt with Clydesdale Bank.
• Strengthening of the board with two new independent non-executive directors experienced in capital markets and healthcare: Dr Andrew Heath and Mr Alan Howard
• A total of 14 new hires were made in 2015, including direct sales, sales support, marketing and operational functions particularly focused in NOVAprep^® products.

*The acquisition of Lab21 was completed June 13, 2014 and the total Group consolidated revenues include Lab21 for the second half of 2014.

Graham Mullis, Group CEO of Novacyt, commented:

"I am pleased to report strong sales growth in 2015 and, in particular, 30% growth in the sales of our NOVAprep® products. The earlier investments in our commercial infrastructure are paying off. Whilst we expand the sales opportunity for our NOVAprep® technology in cervical cancer screening markets, we are also beginning to explore the opportunities for the same technology in other market segments. We see the recently announced collaboration with Abbott as an example of major expansion opportunities that exist for Novacyt to develop other potential strategic partnerships with HPV platform providers.

Lab21 product growth slowed temporarily during the second-half as a result of the timing of tenders which have since started and will be incremental to the core business.

We are starting 2016 with momentum in NOVAprep® sales and known new tender awards that will benefit Lab21. Further business development in NOVAprep® will be a priority for the Group and I look forward to updating shareholders of our progress.”

Current trading and outlook

Novacyt completed a transformational transaction during 2014 with the acquisition of Lab21 and the new commercial growth in NOVAprep® is directly attributable to this. The Company continues to assess a range of growth options both internal and external which will help the Company to drive further growth, accelerate its profitability and drive shareholder value.

The strong NOVAprep® sales growth of 44% in the second-half of 2015 is expected to continue in 2016 with further expansion into new international markets and a continued focus in China with our new distribution partner Leica Biosystems. We will also expand our business development activities with the NOVAprep® technology into other cancer market segments, which could result in expanding the overall commercial opportunities for the Company.

Lab21 product sales are expected to grow further in 2016, with a continued focus on emerging markets and the delivery of the recently awarded tenders.

Novacyt will release further details on the Group’s performance during 2015 when the audited full year results are disclosed.

Key dates for the Company’s results disclosure include:

• Full year 2015 results 28th April 2016
• AGM for 2015 results 28th June 2016
• Half-year 2016 revenues 21st July 2016
• Half-year 2016 results 27th October 2016

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About Novacyt Group

The Novacyt Group is a leader in the field of cellular diagnostics with a growing portfolio of cancer and infectious disease products and services. Through its proprietary technology platform NOVAprep® and a strong international network Novacyt is able to provide an extensive range of oncology and infectious disease diagnostic products. The Group has diversified sales from diagnostic reagents used in oncology, microbiology, haematology and serology markets, and its global customers and partners include major corporates.

For more information please refer to the website: www.novacyt.com

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