22nd Sep 2015 08:35
LONDON (Alliance News) - Venn Life Sciences Holdings PLC said Tuesday it has agreed to acquire Netherlands based Kinesis Pharma BV for a maximum of EUR6.5 million, as it reported a narrowed pretax loss for its first half.
Venn provides clinical trial management and resourcing services for the pharmaceutical, biotechnology and medical-device industries. It will pay EUR3.6 million on completion, made up of USD2.0 million in cash, and USD1.6 million in shares. It will pay up to EUR2.9 million in contingent consideration based on its future performance, half in cash and half in shares.
Venn also said it has raised GBP3.6 million through the issue of 16.2 million shares at 22 pence each to support the acquisition. Shares in Venn were trading down 0.9% at 25.27 pence Tuesday morning.
Kinesis provides speciality consultancy services around the chemical-pharmaceutical, non-clinical and early development of drug products.
"The acquisition of Kinesis will enable earlier and longer engagement with clients as we can now offer services across a broader range of areas. The Venn Kinesis combination affords an opportunity to cross-sell services to an expanded client base and greatly differentiate the business," said Non-Executive Chairman David Evans in a statement.
For the half year to end-June Venn reported a pretax loss of EUR259,000, narrowed from a pretax loss of EUR987,000, as a rise in revenue to EUR4.3 million from USD1.5 million helped offset a step up in administrative costs. Venn attributed its improved performance to continued revenue growth and improved project margins.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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