Corporate News

DHSC contract update

10 December 2021

Omega (AIM: ODX), the specialist medical diagnostics company focused on industry-leading Global Health (CD4 and COVID-19) and Health and Nutrition products, provides an update in relation to the Company’s contract with the Department of Health and Social Care ("DHSC") to provide manufacturing capacity for COVID-19 lateral flow antigen tests. As previously disclosed, the DHSC was unable to move into Phase 2 of the contract, which would have seen Omega progress to manufacturing tests using Government-furnished equipment. 

Omega has received confirmation from the DHSC that they acknowledge that the contract expired on 1 October 2021 and a request that Omega submit a proposal for the repayment of the pre-production payment of £2.5m (net of VAT).

The Board of Omega, having taken initial legal advice, do not believe that the Company is required to repay the preproduction payment and will respond in writing as requested. The Board will continue to take further legal advice on this matter and hopes to reach a resolution swiftly.

Colin King, CEO, Omega Diagnostics, said: “It is clearly disappointing to receive this request for repayment given the efforts we have gone to ensure manufacturing capacity for COVID-19 lateral flow test was available for the DHSC and that we did not progress to Phase 2 of the contract due to the lack of confirmation from the DHSC regarding which test they require us to manufacture.

“Acting in good faith we used these pre-production payments, along with our own funds, to upgrade our manufacturing facilities to be able to integrate the Government-furnished equipment and bringing on the additional staff required to be able to supply the DHSC using our UK-based volume manufacturing services. We therefore are confident that, having sought legal advice, we will not be required to make this repayment.”



Omega Diagnostics Group
Colin King, Chief Executivevia Walbrook PR
Chris Lea, Chief Financial Officer 
finnCap LtdTel: 020 7220 0500
Geoff Nash / Edward Whiley (Corporate Finance)  
Alice Lane / Charlotte Sutcliffe (ECM)  
Walbrook PR LimitedTel: 020 7933 8780 or [email protected]
Paul McManusMob: 07980 541 893
Lianne ApplegarthMob: 07584 391 303
Sam AllenMob: 07502 558 258


About Omega Diagnostics Group PLC 

Omega manufactures and distributes high quality in-vitro diagnostic products for use in hospitals, clinics, laboratories and healthcare practitioners in over 75 countries and specialise in the areas of health and nutrition and global health.

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