Life sciences group sells animal health division to Swedish specialist
Drug development group Avacta has sold its animal health division to a Swedish specialist in a deal worth up to £2.3m.
Vimian Group generates annual revenues of £145m from animal health businesses in four areas – specialty pharma, diagnostics, veterinary services, and medtech.
“This acquisition significantly strengthens Nextmune’s competitive position in the UK,” said Magnus Kjellberg, chief executive of Nextmune, which is Vimian’s specialty pharma division.
“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.”
Avacta Animal Health provides veterinary allergy diagnostic solutions through its laboratory in Wetherby and re-sells immunotherapy products from Nextmune, a Vimian Group company, to veterinary clinics across the UK. The business had revenues of £1.6m in 2021.
Dr Alastair Smith, chief executive of Avacta Group, 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.”
Avacta is developing novel cancer immunotherapies and diagnostics based on its two proprietary platforms, Affimer biologics and pre|CISION tumour targeted chemotherapies.
The group has two divisions – its Wetherby-based diagnostics business uses affimer reagents for diagnostics, bioprocessing and research, while its therapeutics development activities are based in London and Cambridge.
Avacta’s work on Covid-19 tests resulted in a huge jump in its share price, from around 20p to a peak above 290p. Since last summer its share price has dropped more than 80% and last night’s close of 55p values the group at £140m.
