Avacta Announces Agreement to Sell Launch Diagnostics
Avacta Therapeutics (AIM: AVCT), a life sciences company focused on developing next-generation peptide drug conjugates (PDC) that deliver powerful anti-tumor agents directly to tumors, has announced that it has agreed to sell Launch Diagnostics Holdings Limited ("Launch Diagnostics") and its subsidiaries, the Company's largest UK-based diagnostics division, for £12.9 million in cash to Duomed Belgium NV, a subsidiary of Palex Healthcare Group S.L.U. The sale is expected to be finalized by the end of April 2025, pending customary closing conditions. The proceeds from this transaction will be reinvested into advancing Avacta’s pre|CISION platform.
This sale marks a significant move toward achieving the Company's goal of becoming a pure-play biotechnology firm. In connection with divesting its diagnostics business, Avacta is also in discussions to sell its smaller Belgian diagnostics unit, Coris BioConcept SRL.
For the year ending 31 December 2023, Launch Diagnostics reported audited revenues of £17.9 million and a profit after tax of £0.38 million. The business has performed in line with the Board's expectations for the year ending 31 December 2024. As of 30 June 2024, the unaudited net assets of Launch Diagnostics stood at £13.65 million.