Avacta offloads drug analysis product in £3.3m deal
AIM-listed healthcare business Avacta has sold its protein analysis product to a US firm in what it called a “strategic step.”
The Wetherby-based company, which provides innovative diagnostic tools, consumables and reagents aimed at reducing the cost of human and animal healthcare, has completed a sale of the trade and assets of its Optim product to Unchained Labs Inc.
The group will receive up to £3.3m ($5m) in cash, with £2.3m received as initial consideration and up to £1m to be received dependent on the future sales performance of the product up to 2019.
Last month, The University of Liverpool ackowledged Avacta’s Optim products in the fight against cancer. An article detailed how Optim helped them in furnishing new leads in drug discovery relating to cancer, as a result of using the Optim’s hardware and software.
Avacta said it would use the funds from the sale to continue the development and commercialisation of its Affimer technology, its proprietary antibody replacement.
Dr Alastair Smith, group chief executive, said: “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.”
