StockMarketWire.com - Disease and allergy test kit supplier Omega Diagnostics said it expected to post annual earnings 'slightly' head of market expectations and had broadened a Covid-19 antibody test arrangement with Mologic.

Earnings before interest, tax, depreciation and amortisation for the year through March were now expected in the range of £850k-to-£900k.

Bottom line profit, however, would be hit by a £8.7m impairment charge in the company's allergy business, linked to a decision to stop ongoing development of its allergy product range.

Omega Diagnostics said it had signed a supply agreement that would see Mologic supply raw materials to enable Omega to manufacture its CE-marked ELISA antibody test.

'The antibody test will play a key part in identifying people that have antibodies demonstrating previous infection with Covid-19,' the company said.

The agreement was for an initial period of three years and renewable annually thereafter.

Additionally, Omega had signed another material transfer agreement with Mologic for the manufacture of additional Covid-19 tests/

Omega also announced that it has shipped its first order for the Covid-19 ELISA test to Senegal, worth around £0.1m.

It was also currently engaged in registration and evaluation activities in 15 countries that were expected to lead to orders in the near future.

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