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Omega Diagnostics (ODX) Shares Surged 7.44% on Abingdon Payment

Simon Mugo trader
Updated 11 Jul 2022

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The Omega Diagnostics Group Plc (LON: ODX) share price surged by 7.44% after announcing that it had received a payment from Abingdon Health concerning the manufacture of and supply of AbC-19™ Rapid tests.

The company did not say how much it had received from Abingdon Health, but investors were happy to see the long-running battle with the Department for Health & Social Care (DHSC) was finally drawing to a close.

On its part, Abingdon Health said that it had received a £6.3 million cash payment from DHSC, part of which was paid out to Omega Diagnostics, one of the suppliers it contracted to make the COVID-19 lateral flow tests for the DHSC.

Abingdon had been in a long tussle with the DHSC, which cancelled its supply contract in January 2021 and sued the company, saying that it sold the tests at overinflated prices and that they were not fit for use.

Also read: Best AIM Shares to Buy Right Now

The latest payment comes after Abingdon Health, and the DHSC settled the matter on 28 June 2022, much to the relief of investors since the company has now diversified its client list away from the government with a focus on businesses.

Omega Diagnostics did not disclose how much it received from Abingdon Health. Still, many are happy that the matter has now been settled so that the companies involved can carry on with other revenue-generating activities.

The ODX share price has fallen 85.4% in 2022, and many are hoping that with the issues regarding the government contract now being resolved, the company’s share will recover and recoup some of its losses.

*This is not investment advice. Always do your due diligence before making investment decisions.

ODX share price.

Omega Diagnostics Share Price, Source: IG

The Omega Diagnostics (ODX) share price surged 7.44% to trade at 3.49p, rising from Friday’s closing price of 3.25p.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading