Novacyt: Update on Acquistion of Primerdesign Ltd
11 February 2016 - 5:00PM
Business Wire
Primerdesign launches one of the world’s
first Zika virus tests
Regulatory News:
Novacyt (ALTERNEXT: ALNOV), an international specialist in
cancer and infectious disease diagnostics, updates the market on
its intended acquisition of Primerdesign Ltd (“Primerdesign”), a
profitable and rapidly growing UK molecular diagnostics
company.
On 18 January 2016, Novacyt announced its intention to acquire
the entire share capital of Primerdesign for £9.85m (approximately
€13.0m), plus an additional performance consideration of £2.5m
(approximately €3.3m) payable on the achievement of certain sales
targets over three years.
As a rapid developer of molecular tests, Primerdesign is a
world-leader in responding to new disease outbreaks. Primerdesign
was one of the first diagnostic manufacturers to respond with a
swine flu detection kit in 2009, as well as during the recent Ebola
virus outbreak in 2014. Primerdesign has once again responded
rapidly to an emerging global crisis, this time addressing the
outbreak of the Zika virus.
The Zika virus is a mosquito-borne virus that has been reported
in Africa, southern Asia, the Pacific Islands and recently in some
European countries. Symptoms include mild fever and skin rash,
usually accompanied by conjunctivitis, muscle or joint pain, and
general malaise. However, it has recently been associated with
foetal birth defects and poor pregnancy outcomes in babies whose
mothers were infected with Zika virus while pregnant.
Primerdesign has developed a real-time, non-clinical molecular
Zika virus testing kit that is already in use in 18 countries
around the world including Brazil. It is also in the final stages
of developing a single molecular diagnostic test capable of
detecting and distinguishing three mosquito-borne diseases, Zika
virus, Chikungunya virus and Dengue Fever which are closely related
and clinically important vector borne diseases. Primerdesign has
received significant interest for these tests from affected
countries, which could result in significant new sales in 2016.
The highly strategic combination of Primerdesign with Novacyt
will reinforce the Group’s growth strategy, significantly increase
sales, be accretive in the first full calendar year of ownership
and transform the profitability of the Group in 2016 and beyond.
Novacyt notes that Primerdesign’s financial results for the four
months ended 31 January 2016 are in line with management
expectations, with sales of £1.24m (€1.70m), 20% higher than the
same prior year period.
The Group is pleased to report good progress in the financing of
the acquisition with indications of interest from existing
shareholders and new investors. The contribution appraiser
appointed by the Commercial Court of Versailles issued a favourable
opinion confirming that the contribution in kind for 6,378,235
euros payable in Novacyt shares was not overvalued.
Graham Mullis, Group CEO of Novacyt, commented:
“I am very encouraged by the initial reaction of existing
shareholders and new investors to our proposed acquisition of
Primerdesign. Primerdesign continues to demonstrate innovation,
strong sales growth and product line expansion. Its new Zika virus
diagnostic kit is already available as a non-clinical test and has
the potential to significantly accelerate sales growth in 2016. The
acquisition of Primerdesign will accelerate Novacyt’s sales and
profitability growth, add significant future synergies in new
product sales and enhance the prospects and value of the Novacyt
Group.”
- Ends –
About Novacyt Group
The Novacyt Group is a leader in the field of cellular
diagnostics with a growing portfolio of cancer and infectious
disease products and services. Through its proprietary technology
platform NOVAprep® and a strong international network Novacyt is
able to provide an extensive range of oncology and infectious
disease diagnostic products. The Group has diversified sales from
diagnostic reagents used in oncology, microbiology, haematology and
serology markets, and its global customers and partners include
major corporates.
For more information please refer to the website:
www.novacyt.com
About Zika virus
Since April 2015, a large, ongoing outbreak of Zika virus
that began in Brazil has spread to much of South and Central
America, and the Caribbean. In January 2016, the U.S. CDC
issued a level 2 travel alert for people traveling to regions and
certain countries where Zika virus transmission is ongoing.
Governments or health agencies of the United Kingdom, Ireland, New
Zealand, Canada, and the European Union soon issued
similar travel warnings. In Colombia, Minister of Health and
Social Protection Alejandro Gaviria Uribe recommended
to avoid pregnancy for eight months, while the countries of
Ecuador, El Salvador, and Jamaica have issued similar
warnings.
According to the CDC, Brazilian health authorities reported
more than 3,500 microcephaly cases between October 2015 and January
2016. Some of the affected infants have had a severe type of
microcephaly and some have died. The full spectrum of outcomes that
might be associated with infection during pregnancy and the factors
that might increase risk to the fetus are not yet fully understood.
More studies are planned to learn more about the risks of Zika
virus infection during pregnancy. In the worst affected region of
Brazil, approximately 1 percent of newborns are suspected of being
microcephalic.
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version on businesswire.com: http://www.businesswire.com/news/home/20160210006673/en/
InternationalFTI ConsultingBrett Pollard / Victoria
Foster Mitchell+44 (0)20 3727 1000Brett.Pollard@fticonsulting.com /
Victoria.FosterMitchell@fticonsulting.comorFranceArnaud de
Cheffontaines / Astrid Villette+33 1 47 03 69 47 / +33 1 47 03 69
51Arnaud.deCheffontaines@fticonsulting.com /
Astrid.Villette@fticonsulting.comorNOVACYTGraham MullisChief
Executive Officer+44 (0)7901 514121Graham.mullis@novacyt.co.uk
Novacyt (EU:ALNOV)
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