LONDON, UK: Avacta Group plc (AIM: AVCT), a clinical stage oncology drug company, announced that Vimian Group AB (Vimian.ST) has acquired the veterinary division of Avacta Group, Avacta Animal Health.
Avacta has received an upfront payment of £0.9 million and will receive additional deferred consideration of up to £1.4 million dependent on the combined performance of the consolidated business.
Avacta Animal Health provides veterinary allergy diagnostic solutions through its laboratory in Wetherby, UK and re-sells immunotherapy products from Nextmune, a Vimian Group company, to veterinary clinics across the UK. The business also provides testing kits to veterinary laboratories across Europe.
Avacta Animal Health Limited will be acquired by Nextmune Holdings BV and will be consolidated into Vimian’s Specialty Pharma segment on 15 March, 2022.
The Animal Health Division had made an operating loss (prior to an impairment of historic goodwill) of £0.3 million during the year ended 31 December 2020. The carrying value of the Division as at 31 December 2020 was £1.0 million. The sale proceeds will provide further funds for the development of the Group’s Diagnostics and Therapeutics Divisions.
Dr Alastair Smith, Chief Executive Officer of Avacta Group, commented: “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.”
Magnus Kjellberg, CEO of Vimian’s Specialty Pharma segment Nextmune, commented: “This acquisition significantly strengthens Nextmune’s competitive position in the UK. 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. The cross-selling opportunities via this business existing customer base as well as the increased laboratory capacity for Nextmune are also key components in driving incremental growth.”