Avacta Group sells veterinary division in a deal worth up to £2.3m
The veterinary division of the drug development company, (AVCT ), has been acquired by a Swedish specialist known as Vimian Group AB in a deal worth up to £2.3m.
Avacta’s veterinary division, Avacta Animal Health, which is a provider of veterinary allergy diagnostic solutions through its Wetherby-basd laboratory, re-sells immunotherapy products from Nextmune, a Vimian Group company, to veterinary clinics across the United Kingdom. In addition, the business also provides testing kits to veterinary laboratories across Europe.
Vimian Group AB generates total annual revenues of £145 from animal health businesses across four specific areas – specialty pharma, diagnostics, veterinary services, and medtech.
Under the terms of the acquisition, Avacta Group has already received an upfront payment of £0.9 million. The company will also receive additional deferred consideration of up to £1.4 million dependent on the combined performance of the consolidated business, it detailed.
In the year ended 31 December 2020, Animal Health Division made an operating loss of £0.3m while as at 31 December 2020, the carrying value of the division was £1.0 million.
Avacta explained to investors that the proceeds from the sale of this division will provide further funds for the development of the Group’s Diagnostics and Therapeutics Divisions.
Shares in Avacta Group were trading 4.45% higher today at 57.5p following the news.
Avacta’s diagnostics business uses affimer reagents for diagnostics, bioprocessing and research, while its therapeutics development activities are based in London and Cambridge.
Avacta’s CEO, Dr Alastair Smith, said: “The sale of the Avacta Animal Health business allows the Group to focus entirely on growing its core businesses; diagnostics and therapeutics. Having had our Animal Health division since 2009, we are delighted that Vimian will be retaining the entire Avacta Animal Health team and are well placed to grow the business.”
Magnus Kjellberg, CEO of Vimian’s Specialty Pharma segment Nextmune, commented:
“This acquisition significantly strengthens Nextmune’s competitive position in the UK.”
He added: “With our own laboratory for veterinary allergy diagnostics in the country and a full-service offering covering all veterinary dermatology needs, we see significant opportunities to accelerate sales and improve customer experience in the UK. The cross-selling opportunities via this business existing customer base as well as the increased laboratory capacity for Nextmune are also key components in driving incremental growth.”
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