Novacyt sells clinical laboratory business
Clinical diagnostics specialist Novacyt has completed the sale of its clinical laboratory business to Cambridge Pathology BV for £400k cash. The deal will enable Novacyt to focus more closely on the expansion and value of its core businesses, Primerdesign and Cambridge-based Lab21.
The Clinical Lab is a small part of Novacyt’s Lab21 business in Cambridge, which specialises in clinical pathology testing services in oncology and virology.
For the financial year ended December 31, the Clinical Lab reported revenue of €765k, representing less than six per cent of the group’s reported revenues, and an EBITDA loss of €96k. The net assets of the Clinical Lab at December 31 were €101k.
The sale of the Clinical Lab follows a strategic review of the Novacyt Group, completed in December. It was deemed to be non-core and not integral to the company’s in vitro diagnostic products focus.
Group CEO Graham Mullis, said: “The sale of the Clinical Lab allows us to further streamline and focus our operations. 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 use the funds from the transaction for working capital as we continue to expand our product offering and develop new and existing partnerships with global diagnostics companies.”
Dr Tony Cooke, Cambridge Pathology BV, added: “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 UK and beyond.”