Novacyt Closes IT-IS International Subsidiary Amid Market Saturation

Novacyt S.A., a molecular diagnostics company, has announced the immediate closure of its subsidiary, IT-IS International Limited. Acquired in 2020, IT-IS specialized in rapid-PCR instrumentation, playing a crucial role in Novacyt's COVID-19 response. However, the saturated PCR market led to consecutive financial losses for IT-IS, contributing only £0.3m in revenue for the first half of 2024, a decline from £0.6m during the same period in 2023.

This closure is projected to enhance Novacyt's EBITDA by approximately £1.0m annually, albeit with a restructuring charge of around £0.7m. Despite the closure, Novacyt retains IT-IS's intellectual property, crucial in an ongoing legal dispute with Roche Diagnostics GmbH. The company intends to focus on cost reduction to drive future growth.