Omega Diagnostics, which is overhauling operations to focus on its health and nutrition business, has received an undisclosed payment for test kits delivered during the height of the Covid pandemic.
The payment is from Abingdon Health, the lead company in the UK Rapid Test Consortium that included Omega. Its tests were supplied to the UK Government via the Department for Health & Social Care (DHSC).
In March, Abingdon said it had not been paid invoices totalling £8.5 million by the DHSC for lateral flow devices delivered in January 2021, and for components purchased on behalf of the DHSC during 2020. Last month, Abingdon said it had reached an £8.9m settlement agreement with the DHSC.
READ MORE: Omega Diagnostics announces preferred bidder for HIV testing kit division
As part of that settlement agreement Abingdon received a £6.3m cash payment last week from the DHSC, allowing it in turn to pay Omega.
Omega withdrew from manufacturing Covid test kits after announcing plans to move to Cambridgeshire from its former headquarters in Alva, Scotland. The facility there has been sold to a subsidiary of China's Zhejiang Orient Gene Biotech.
Omega is also exiting its CD4 business, which makes disposable tests for people living with HIV. The company announced last week that it has agreed heads of terms with an anonymous buyer that is now in the process of completing due diligence.
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