LONDON (ShareCast) - (Sharecast News) - Clinical-stage oncology drug company Avacta Group announced on Wednesday that Vimian Group has acquired its veterinary division, Avacta Animal Health, for consideration of up to £2.3m.
The AIM-traded firm said Avacta Animal Health provides veterinary allergy diagnostics through its laboratory in Wetherby, and re-sells immunotherapy products from Vimian division Nextmune to veterinary clinics across the UK.

It said the business also provides testing kits to veterinary laboratories across Europe.

Avacta Animal Health was acquired by Nextmune Holdings, and would be consolidated into Vimian's specialty pharma segment as of 15 March.

Avacta said it received an upfront payment of £0.9m, with additional deferred consideration of up to £1.4m due depending on the combined performance of the consolidated business.

The animal health division made an operating loss before the impairment of historic goodwill of £0.3m in 2020, and the carrying value of the division on 31 December 2020 was £1m.

Avacta said the sale proceeds would provide further funds for the development of its diagnostics and therapeutics divisions.

"The sale of the Avacta Animal Health business allows the group to focus entirely on growing its core businesses - diagnostics and therapeutics," said chief executive officer Dr Alastair Smith.

"Having had our animal health division since 2009, we are delighted that Vimian will be retaining the entire Avacta Animal Health team and are well placed to grow the business."

At 1244 GMT, shares in Avacta Group were up 4.81% at 57.7p.

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