Shares of Abingdon Health (LON: ABDX) have fallen over 31% on Tuesday after the company warned investors about a slower than anticipated uptake of its Covid-19 test kits.
The company said that it continues to make progress on commercialising the AbC-19T rapid test both in the UK private sector and internationally and that it is encouraged by ongoing commercial discussions.
However, Abingdon stated: “Whilst each of the opportunities at the time of the interims remains in place and the pipeline continues to grow, the speed of adoption and therefore the receipt of orders is taking longer than the Board originally anticipated.
“The Board, therefore, expects the results for FY21 will be substantially below the current market expectations.”
The uncertainty means the AIM-listed company has set its revenue guidance for FY21 at between £11.4 million and £17 million, with an adjusted EBITDA range of -£3.3 million to £0.
If revenue was to come in at the lower end of the range, it would still represent a significant increase year over year.
Elsewhere, Abingdon said it is continuing to work with contract service partners to transfer assays to large-scale manufacture, with three projects ongoing.
They are also awaiting payment from the expired Department of Health and Socia Care contract, with the current outstanding total at £6.7 million.
Chris Yates, CEO of Abingdon Health, commented: “Abingdon Health has made significant commercial progress across the COVID-19 and non-COVID-19 markets and the company expects revenues to more than double this year.
“The Company continues to develop a strong pipeline of opportunities for its AbC-19™ rapid test. As previously stated, the timing of antibody testing programme roll-outs around the world and future orders is difficult to accurately predict given the range of factors including the evolving regulatory processes, the impact of COVID-19 virus mutations and the rate of vaccination programs.
“We believe there are clear use cases for antibody testing which includes checking levels of immunity both prior to and after vaccinations and we are confident that over the coming months, the Company's Tier 1 and other targets will convert.”
Abingdon Health’s share price is currently down 31.68% at 55p per share.
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