24th Nov 2015 09:53
LONDON (Alliance News) - Life sciences company Abzena PLC on Tuesday said it has agreed to acquire The Chemistry Research Solution LLC and has raised GBP20.0 million to back the deal, as its pretax loss widened in the first half.
Abzena said it will pay a total of USD15.0 million to acquire TCRS, a specialist contract chemistry and bioconjugation company, which produces and analyses antibody drug conjugates.
The consideration will comprise USD8.8 million in cash, with the remainder to be covered by Abzena shares and restricted stock units.
Abzena said the deal will boost its service capability, along with cross-selling opportunities and a presence in the US.
To support the acquisition, Abzena said it will raise GBP20.0 million via the issue of 35.0 million shares at 60.0 pence per share with existing and new shareholders. Shares in Abzena were down 4.1% to 62.35p on Tuesday.
Abzena intends to use the proceeds from the placing to cover the acquisition and to back further research and development work.
"The acquisition of TCRS is an important strategic step in our ambition to build Abzena into a self-sustaining business and 'partner of choice' for R&D organisations developing biopharmaceutical drugs," said John Burt, Abzena's chief executive.
The deal came as Abzena said its pretax loss for the half to the end of September widened to GBP3.9 million from GBP3.0 million a year earlier. Revenue rose to GBP3.5 million from GBP2.4 million, but this was offset by higher administrative costs.
By Sam Unsted; [email protected]; @SamUAtAlliance
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