Novacyt closes its IT-IS International subsidiary

Novacyt SA, a molecular diagnostics company, has announced the closure of its UK subsidiary IT-IS International Limited. Acquired in 2020 to provide PCR solutions for COVID-19, IT-IS contributed to the turnover of H1 2024 revenue of £0.3m, down from £0.6m in 2023. With the PCR instrument market becoming saturated, IT-IS has been making losses in recent years.

The closure is expected to improve Novacyt's EBITDA by approximately £1.0m per year despite restructuring costs of £0.7m. IT-IS intellectual property will be retained, including for ongoing litigation with Roche Diagnostics GmbH.

Lyn Rees, Managing Director, highlights that this decision reduces costs and optimises the product offering, placing the company in a better position for the future.