Omega Diagnostics halts development of allergy products

Medical diagnostics company Omega Diagnostics said on Tuesday that it would take a hit of £8.73m after halting development of its allergy products.

Omega will recognise the impairment charge in its results for the year ended 31 March after taking the decision to stop ongoing development of its allergy product range but said it would continue to manufacture the 69 CE-Marked allergens developed to date in order to meet commercial demand from its partner, Immunodiagnostic Systems.

Chief executive Colin King said: "The decision to stop the development of further allergens has not been taken lightly but we recognise we can achieve better returns from directing our development efforts in other areas and we look forward to providing further updates as the opportunities we have in front of us deliver on their undoubted potential."

Elsewhere, the AIM-listed group said it had confirmed a supply agreement that would see it fast track mass production of three Covid-19 tests at its sites in Alva and Cambridgeshire.

Under the three-year material transfer agreement, Mologic will supply the group with raw materials needed to make the CE-marked antibody test, which can identify individuals who have been infected and may have immunity to the coronavirus. Mologic will also supply materials for a lateral flow test for Covid-19 antigens.

Omega said it had already shipped its first order, valued at £100,000, for the test to Senegal and was in the process of having it registered in 15 other countries.

As of 1045 BST, Omega shares had sunk 11.11% to 55.11p.