3rd Aug 2022 12:59
Omega Diagnostics Group PLC - Alva, Scotland-based diagnostics company - Completes sale of loss-making CD4 business to Accubio Ltd, a wholly-owned subsidiary of Chinese biotechnology firm Zhejiang Orient Gene Biotech Co Ltd. Sells business for GBP6.1 million, before costs. Company says CD4 will be more successful under new ownership. Receives an immediate cash payment of GBP1.1 million for the business's fixed assets and inventory. Expects to receive an additional GBP4.0 million for the business's intellectual property.
Chief Executive Jag Grewal says: "The disposal of our CD4 business completes the first phase of our turnaround plan, addressing the unsustainable cost base in Scotland and divesting our loss-making businesses. The sale now allows us to focus all our efforts on the profitable and cash generative Health & Nutrition division, maintaining our leadership position and targeting organic growth through geographical expansion, a broadening of our product offering and embracing digital technologies."
Current stock price: 3.37 pence, up 5.3% in London on Wednesday
12-month change: down 93%
By Heather Rydings; [email protected]
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