Sam is a trader and one of our lead stock analysts at AskTraders. After starting his career predominantly in the forex markets, Sam now focuses on gold and stocks with a preference for macroeconomic analysis.
Shares of rapid test developer and manufacturer, Abingdon Health (LON: ABDX) closed over 13% lower on Monday after an article from the Daily Mail released on Friday evening said UK ministers “ignored legal advice to give a failing company a huge Covid test contract leaving taxpayers with an £87 million bill.”
That company is Abingdon Health, with the Daily Mail claiming that the tests didn’t work.
“Public Health England requires at least 98 per cent accuracy for antibody tests and its evaluation was that Abingdon's offered less than 85 per cent,” the article said.
Abingdon’s share price closed at 90.5p, after a 13.76% fall on Monday.
The company did issue a brief response to the report, saying it “notes the article published in the Daily Mail on 6 February 2021 and refers investors to the RNS announcements made on 29 December 2020, 26 January 2021 and 27 January 2021 which accurately reflect the Company's position and current performance.”
On 21 January, the government wrote to lawyers to say they had cancelled all outstanding orders placed with Abingdon Health for antibody lateral flow tests because they failed to gain approval from the MHRA for home use.
Judicial review proceedings have been brought against the government regarding the contract award to the company.
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