Novacyt, the international specialist in clinical diagnostics, has completed the sale of its clinical laboratory business (Clinical Lab) to Cambridge Pathology BV for a total consideration of £400,000. The sale will enable Novacyt to focus on the expansion and value of its core businesses, Primerdesign and Lab21.
The sale of the Clinical Lab follows a strategic review of the Novacyt Group, completed in December 2018. As a result, the company announced, the Clinical Lab was deemed to be non-core and not integral to the company’s in vitro diagnostic products focus.
“I am pleased to announce the completion of the sale of the Clinical Lab, which allows us to further streamline and focus our operations," said Graham Mullis, Group CEO of Novacyt.
We will utilise the funds to expand our product offering and develop new and existing partnerships with global diagnostics companies
For Mullis, Novacyt remains committed to its core strengths of in-vitro diagnostics product development, commercialisation and contract manufacturing and we are focused on driving value from Primerdesign and Lab21 products.
"We will utilise the funds from the transaction for working capital purposes as we continue to expand our product offering and develop new and existing partnerships with global diagnostics companies," he said.
The Clinical Lab is a small part of Novacyt’s Lab21 business based in Cambridge, UK, which specialises in clinical pathology testing services in oncology and virology.
For the financial year ended 31 December 2018, the Clinical Lab reported revenue of €765k, representing less than 6% of the group’s reported revenues. The net assets of the Clinical Lab on 31 December 2018 were €101k.
Dr Tony Cooke, Cambridge Pathology BV, commented: “We are pleased to acquire the activities of the Clinical Lab from Novacyt. To date, Lab21 has built an outstanding reputation for quality services in molecular biology testing, with a focus on oncology and virology field, and we look forward to working together with the team in order to further expand activities in the United Kingdom and beyond.”
