Q1 numbers from the healthcare play out this morning may have been as expected but the market was quick to give the performance a warm reception with shares adding around 4% in early trade. Full year guidance remains unchanged and the pace of new product development releases continues to be seen as a driver for growth. The company was left topping the FTSE-100 leader board as a result.
The AIM-listed biotechnology company is set to go to court in a battle with the UK government, where the Department for Health and Social Care is levelling a £135m law suit over rapid COVID test kits. The DHSC had applied for a summary judgement to be made against part of the claim but this has been dismissed and will now move to a full trial. It’s going to be a drawn out process but this development is positive for Novacyt with shares adding a little over 10% in the first hour of trade.
The Trinidad & Tobago focused oil exploration and production company looks set to be the latest name to disappear from the London market after management recommended an all share offer from Touchstone Exploration. The deal implies a value of 61.9p, although the market appears reluctant to price all of that in with the stock currently sitting at 53p. There is clearly more uncertainty with an equity rather than cash based offer, but once again it’s highlighting the corrosive effect of poor market liquidity. Commercial synergies are also expected to be realised. The stock was trading 47% higher in early trade.
Headlines we expect on Thursday
Smurfit Kappa Trading update
This time last year Revenue €3,024m, EBITDA margin 17%
