Corporate Banner
Satellite Banner
Molecular & Clinical Diagnostics
Scientific Community
 
Become a Member | Sign in
Home>News>This Article
  News
Return

Novacyt, Lab21 to Combine in Stock-For-Stock Transaction

Published: Wednesday, May 28, 2014
Last Updated: Wednesday, May 28, 2014
Bookmark and Share
On completing the transaction, Lab21 will become a 100% subsidiary of Novacyt, and the combined group will be rebranded.

Novacyt plans to combine in a stock-for-stock transaction with Lab21, the Cambridge. The transaction agreements signed today have been approved by the Boards of Directors of each company and the shareholders of Lab21, including some renowned medical and life-science venture capital and private-equity institutions. Completion of the transaction is subject to approval by the Novacyt shareholders at the extraordinary general meeting (EGM) on June 13, 2014.

The combined group will create an emerging diagnostics leader with a portfolio of cancer and infectious diseases diagnostic products and services. It will benefit from significant complementary strengths with Novacyt’s R&D capacities and the commercial infrastructure, manufacturing and extensive network of collaboration partnerships of Lab21. This will result in operations based in France, UK, China and Australia and distribution covering over 100 countries, across Europe, the Americas, and Asia-Pacific, including China.

Immediate revenues will come through the sale of the proprietary screening platform developed by Novacyt, NovaPrep® and the existing Lab21 oncology and infectious disease business. Future revenues will come through the increased distribution of NovaPrep® and a number of new products developed by the combined group.

The NovaPrep® platform is a new generation liquid-based cytology screening platform which has significant clinical, operational and economic benefits. Since its launch in 2008, Novacyt has performed in excess of 1,500,000 patient tests which have been reimbursed by healthcare authorities. The Novaprep® benefits from CE-IVD marking in Europe and has received marketing authorizations in a number of countries such as Russia, South Korea and Morocco.

Within the combined business, significant synergies are expected involving manufacturing, distribution and R&D. Lab21 will manufacture some of NovaPrep® consumables bringing a major revenue source for the Novacyt technology in-house, control of its supply chain and therefore driving significant gross margin improvements. Furthermore, Lab21’s market and distribution channels are expected to open up new sources of business to Novacyt. Lab21’s successful ability to partner with major corporates in diagnostics and pharma, is expected to provide significant opportunities for rapid growth of the Novacyt technology.

Under the terms of the proposed share capital increase of Novacyt 2,523,059 Novacyt shares will be issued to Lab21 shareholders at an exchange ratio of 0.925 Novacyt share for one Lab21 share, as remuneration of the Lab21 shares contribution in kind. Upon completion of the proposed transaction, 54% of Novacyt fully diluted share capital will be held by Novacyt’s actual shareholders and 46% by the current Lab21 shareholders. The total transaction value upon completion is expected to be ca. €40m. The new Novacyt shares will be traded on NYSE-Alternext.

Graham Mullis, currently Chief Executive Officer of Lab21, will become Chief Executive Officer and Eric Peltier will become Chief Innovation Officer of Novacyt.

Graham Mullis, CEO of Lab21, said: “This transaction significantly improves the commercial outlook of both companies. Novacyt has developed an excellent cytology platform, which has been proven to be highly effective. This, combined with Lab21’s global reach and existing partnerships will enable the newly combined business to reach new markets, and continue its commercial success. Ultimately, this transaction is expected to drive significant value for both sets of shareholders.”

Eric Peltier, currently Chairman and Chief Executive of Novacyt, said: “The transaction with Lab21 will allow Novacyt to access its international distribution channels, and coupled with its access to major corporate partners, will allow us to rapidly commercialise our cytology platform. I am also looking forward to the potential of combining proprietary technologies from both companies to develop new diagnostics products in the future.”


Further Information
Access to this exclusive content is for Technology Networks Premium members only.

Join Technology Networks Premium for free access to:

  • Exclusive articles
  • Presentations from international conferences
  • Over 2,500+ scientific posters on ePosters
  • More than 3,800+ scientific videos on LabTube
  • 35 community eNewsletters


Sign In



Forgotten your details? Click Here
If you are not a member you can join here

*Please note: By logging into TechnologyNetworks.com you agree to accept the use of cookies. To find out more about the cookies we use and how to delete them, see our privacy policy.

Related Content

Lab21, Quidel Expand International Distribution Agreement
Expanded agreement will see Lab21 distribute AnDiaTec’s Real-Time PCR Tests within the UK.
Tuesday, February 11, 2014
Lab21 Announces Sale of South Carolina Operations
Company announces sale of its laboratory operations to Reedy Acquisitions Corp.
Tuesday, April 23, 2013
Lab21 and IntegraGen Partner
Lab21 Limited has entered into an agreement with IntegraGen to develop a microRNA assay for colorectal cancer designed to further improve patient outcomes.
Tuesday, March 05, 2013
Lab21 and IntegraGen Partner to Develop New Colorectal Cancer Diagnostic
Lab21 to develop a CE marked assay to detect expression levels of a microRNA biomarker.
Tuesday, February 26, 2013
BD and Lab21 Collaborate
Both Companies collaborate to develop new oncology assays on the BD MAX™ platform.
Tuesday, October 16, 2012
Clydesdale Bank £5 Million Funding to Support Lab21 International Growth
Lab21 is expected to deliver greater than 30% revenue growth in 2012.
Tuesday, July 10, 2012
Lab21 Partners with Major Pharmaceutical Company to Develop New Companion Diagnostic Assay
Agreement allows Lab21 to develop, manufacture and distribute a new companion diagnostic assay for the detection of specific mutations in colorectal cancer samples to select patients for the partner's therapeutic monoclonal antibody.
Tuesday, June 26, 2012
Lab21 Secures European and USA Patents for HCV Drug Resistance Genotyping
Company to expand its intellectual property portfolio in infectious disease testing.
Monday, May 21, 2012
Lab21 Unveils New Molecular Analysis Services at Greenville Site
The first assays in the test menu include a new Human Papillomavirus (HPV) High Risk and HPV 16 and 18 Genotyping Service.
Monday, May 14, 2012
Lab21 and ITOR Launch Clinical Genomics Center in USA
New Clinical Genomics Center will be located within the Greenville Hospital System (GHS) Memorial Medical Campus in Greenville, South Carolina.
Wednesday, March 07, 2012
Lab21 Acquires New Real Time PCR Technology
Company expects to launch diagnostic assays using PCR technology during first half of 2012.
Wednesday, January 25, 2012
Lab21 Acquires Molecular Diagnostics Company Myconostica
The acquisition of Myconostica expands Lab21’s growing proprietary diagnostic portfolio and will provide the Company’s first set of nucleic acid-based assays.
Tuesday, May 24, 2011
Lab21 to Support New US Cancer Institute With Molecular Diagnostic and Clinical Trial Services
Lab21 announces an agreement with ITOR to provide molecular diagnostic support services for new initiatives in drug development and advanced cancer patient care.
Wednesday, October 20, 2010
Lab21 Launches new Commercial Companion Diagnostic Service for HIV Tropism in UK
Company becomes the first commercial reference laboratory in the UK to provide a companion diagnostic service for the HIV drug, Celsentri.
Tuesday, August 31, 2010
Scientific News
‘Mutation-Tracking’ Blood Test for Breast Cancer
Scientists have developed a blood test for breast cancer able to identify which patients will suffer a relapse after treatment, months before tumours are visible on hospital scans.
Common ‘Heart Attack’ Blood Test May Predict Future Hypertension
Small rises in troponin levels may have value as markers for subclinical heart damage and high blood pressure.
Poor Survival Rates in Leukemia Linked to Persistent Genetic Mutations
For patients with an often-deadly form of leukemia, new research suggests that lingering cancer-related mutations – detected after initial treatment with chemotherapy – are associated with an increased risk of relapse and poor survival.
'Fountain of Youth' Protein Points to Possible Human Health Benefit
Patients with higher blood levels of growth factor have lower risk of cardiovascular problems.
Signature of Microbiomes Linked to Schizophrenia
Studying microbiomes in throat may help identify causes and treatments of brain disorder.
Imaging Software Could Speed Breast Cancer Diagnosis
Technology could improve access to diagnostic services in developing countries.
The Changing Tides of the In Vitro Diagnostics Market
With the increasing focus in personalized medicine, diagnostics plays a crucial role in patient monitoring.
Data Mining DNA For Polycystic Ovary Syndrome Genes
A new Northwestern Medicine genome-wide association study of PCOS – the first of its kind to focus on women of European ancestry – has provided important new insights into the underlying biology of the disorder.
Algorithm Interprets Breathing Difficulties to Aid in Medical Care
Researchers from North Carolina State University have developed an efficient algorithm that can interpret the wheezing of patients with breathing difficulties to give medical providers information about what’s happening in the lungs.
Researchers Develop qPCR Prognosis Test for NSCLC Patients
A nine-gene molecular prognostic index (MPI) for patients with early-stage non-small cell lung cancer (NSCLC) was able to provide accurate survival stratification and could potentially inform the use of adjuvant therapy in patients struggling with the disease.
Skyscraper Banner

Skyscraper Banner
Go to LabTube
Go to eposters
 
Access to the latest scientific news
Exclusive articles
Upload and share your posters on ePosters
Latest presentations and webinars
View a library of 1,800+ scientific and medical posters
2,500+ scientific and medical posters
A library of 2,500+ scientific videos on LabTube
3,800+ scientific videos
Close
Premium CrownJOIN TECHNOLOGY NETWORKS PREMIUM FREE!