Omega set for talks over sale of allergy business

APPROACH: Distributor keen to explore buy-out of unit

Shares in Scottish medical testing firm Omega Diagnostics spiked yesterday after it revealed it had received an approach for its allergens business.

The Alva firm disclosed the approach by Immunodiagnostic Systems Holdings (IDS) as it updated the market on trading in the six months to September 30. The company stressed the approach had only come late last week and formal talks would now have to take place to fully determine IDS’s intentions.

“We have recently been approached by our Allersys licensor with a view to changing the nature of the commercial relationship with the company,” Omega chairman David Evans said as he revealed a better than expected financial outlook.

“This could extend to the acquisition of all or part of our allergy business.

“We will update the market as soon as we have a clearer understanding of IDS’ intentions but as things stand, the outlook for the rest of the financial year is encouraging within our core business with revenue and adjusted profit before tax expected to be at the higher end of market expectation due, in part, to favourable currency movements.”

Revenues in the half year period were 11% ahead at £6.83 million, while profit before tax came in at £305,447, up from £177,360 the previous year.

The company said it had seen strong demand for its food intolerance products and said it was committed to increasing its allergens menu.

It also said it now had a “clear roadmap” to drive its flagship CD4 HIV test to market by the second half of 2017.

A technician oversees the process of producing hand-held tests.