Member Article

Wetherby’s Avacta sells assets to Californian lab for $5 million

Wetherby healthcare supplier Avacta Group plc has completed a sale of selected assets of its Optim product to Californian firm Unchained Labs Inc.

Avacta will receive up to $5 million in cash, with $3.5 million received as initial consideration and up to $1.5 million to be received dependent on the future sales performance of the product over the period to 31 December 2019.

Optim formed substantially all of the Avacta Analytical operating segment of the Group’s operations and, for the year ended 31 July 2014, this operating segment reported revenues of £1.6 million and an operating profit of £0.1 million.

The Group’s carrying value for Optim is approximately £1.7 million.

Following the sale of Optim, the group will apply the proceeds of the sale primarily towards the continuing development and commercialisation of its Affimer technology.

Dr Alastair Smith, group chief executive commented:“For some time now, the principle focus of the Group’s resources has been on the Affimer opportunity and the sale of the Optim product is strategically important as it allows the Group to focus even more intensively on the development and commercialisation of Affimers.

“Optim is now established as a product in its market and the opportunity is substantial for an acquirer with significant sales and marketing resources to put behind it.

“The Group has a huge opportunity with the Affimer technology to grow significant value for shareholders.

“It is important for us to focus on that and I am therefore pleased that we have been able to take this strategic step.”

This was posted in Bdaily's Members' News section by Clare Burnett .