Novacyt Shares Penalized After Announcement of Up to 40% Staff Cuts
Shares of the molecular diagnostics specialist suffer a heavy penalty during the session, amid a major internal reorganization. Morning announcements about staffing have weighed on a stock that had been showing strong progress since early spring.
A Consultation Process Targeting Up to 40% of the Group's Workforce
Novacyt shares fell 7.46% to €0.546 at midday, in a Parisian market that was slightly bullish (CAC 40 +0.14%, SBF 120 +0.12%). The decline follows the company's initiation of a consultation process that could lead to a reduction of up to 40% of the group's workforce. The management describes this reorganization as an effort to rationalize operational costs, following the launch of new products and the integration of the acquisition of Southern Cross Diagnostics. The financial context underscores the stakes of this restructuring. When announcing preliminary results for the fiscal year 2025 (on January 21, 2026), Novacyt mentioned an expected revenue of 19.8 million pounds sterling and a negative EBITDA of 8.5 million pounds, emphasizing a debt-free group with comfortable cash reserves. The consultation now aims to adjust the cost base to this revenue trajectory.
A Retreat that Takes the Stock Below its MM20 but Preserves Quarterly Momentum
Today's session movement breaks the recent momentum of the stock, which had rebounded more than 11% on May 19 due to the launch of the Yourgene Insight DPYD genetic test. Today's decline brings the price to €0.546, slightly below the MM20 at €0.57 (a -4.21% gap), while the MM50 (€0.46) and MM200 (€0.45) remain significantly below the price, with respective gaps of +18.7% and +21.3%. The RSI at 54 remains neutral despite the drop, indicating that the stock was starting from a tense zone after its recent rally. Over three months, Novacyt still shows a nearly 36% increase, which cushions the fall of the session. Over a week, however, the performance turns to -5.69%. The technical support identified at €0.32 remains far off, while the resistance at €0.90 marked the ceiling of the last rebound. The next anchor point to watch is the MM20 at €0.57, below which the price has retreated during the session.
