12th Feb 2015 09:23
LONDON (Alliance News) - Life sciences company Avacta Group PLC Thursday said it has now completed the sale of the trade and selected assets of its Optim product to Unchained Labs Inc, pocketing the company USD5 million in cash.
Avacta, a diagnostics tools provider, said it will receive up to USD5 million in cash, USD3.5 million as an initial consideration and up to USD1.5 million depending on the sales performance of the company up until the end of 2019.
The group said it will now use the sale proceeds to continue developing and commercialising its Affimer technology.
Last month, Avacta said its Analytical division terminated exclusivity in a distribution deal for the key US market with Pall/ForteBio in 2014, which would come into effect at the beginning of February, after which it would then sell its Optim analytical instrument directly in the US market, as it sees more potential through direct selling than than through a distributor.
"It will take a little while to build our direct sales capability for Optim in the key US market, but it is important to establish that capability in order to drive the sales growth that we expect for this product," Chief Executive Alastair Smith said in a statement at the time.
In Thursday's statement, Smith said 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," said Smith.
Avacta shares were trading 0.6% higher Thursday morning at 0.770 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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