Omega to net £2.2m in disposal

Omega Diagnostics, the Alvabased life sciences company, has continued its restructuring after agreeing to sell its infectious disease business to French group Novacyt for up to £2.2 million.

The Scots firm has also entered into an agreement with Novacyt, under which Omega will provide certain services, including manufacturing and storage for up to 12 months following completion of the deal. At completion, two employees of Omega will transfer to Novacyt.

The proceeds of the disposal will be used to provide working capital as the company continues to focus on realising the value of its Visitect CD4 testing system, which is not part of the sale.

Omega will pocket up to £2.175m from Novacyt, of which £375,000 is subject to certain post-completion conditions being met.

In the year to 31 March 2017, the infectious disease (ID) assets generated revenues of about £2.5m and a profit before central overheads of around £300,000.

Omega chairman David Evans said: “This divestment is the first stage of a process following the strategic review as we seek to realise value for shareholders in the shortterm from our other assets as well as building value through the more rapid exploitation of the opportunity in CD4 testing at the point of care.”

Graham Mullis, group chief executive of Novacyt, added: “I am delighted to agree terms to acquire the ID business directly from Omega Diagnostics.

“We have been looking to expand our Lab21 product range and the ID business is a perfect match with our current portfolio. This acquisition is expected to deliver material cost and growth synergies as we leverage the Novacyt infrastructure and integration will start immediately after completion. We continue to assess a deep pipeline of potential further acquisitions and I look forward to updating the market.”