11th Dec 2018 14:43
LONDON (Alliance News) - Novacyt SA said Tuesday it will sell its NOVAprep and clinical laboratory units following a strategic review.
The clinical diagnostics products manufacturer said the decision to sell NOVAprep was prompted "in part" by an unsolicited bid, from an undisclosed buyer.
Novacyt said it has started a formal open-market sales process for the unit, which may result in it being sold as an entire business or as separate assets to multiple parties.
The company said its strategic review "reaffirmed its commitment" to in vitro diagnostic product development.
As a result, its clinical unit, a small part of the company's Lab21 business, was deemed "non-core" and "not integral" to Novacyt's in vitro diagnostic products focus and will sell the unit. Novacyt said it as received "multiple expressions" of interest in its clinical lab unit.
Novacyt is "optimistic" about the current levels of interest in the two units and expects to update shareholders on the sale process in the first quarter of 2019.
The company noted NOVAprep will be treated as a discontinued operation in its upcoming results for 2018, leading to "stronger" reported operating results in the current and previous years.
Chief Executive Officer Graham Mullis said: "The potential sales of NOVAprep and the clinical lab represent key steps in streamlining the group to focus on diagnostic products and product development services. We remain committed to our three strategic pillars of organic, acquisitive and R&D based growth.
"By focusing further on our core strengths and taking a more targeted investment approach, we expect to continue to improve efficiency and profitability across the group and improve shareholder returns. I look forward to updating shareholders with the progress of the sale processes during the first quarter of 2019."
Shares in Novacyt were untraded Tuesday but last closed at 34.50 pence each.
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