Lab21, Novacyt deal
The diagnostic companies will merge in a stock deal. Lab21 shareholders will receive 2.5 million Novacyt shares valued at €13.6 million ($18.6 million) based on Novacyt's close of €5.39 on May 27, before the deal was announced. Lab21 shareholders will hold a 46% stake in the combined company, which will be renamed. Novacyt shareholders will own the remaining stake. Lab21 CEO Graham Mullis will be CEO of the combined company, and Novacyt CEO and Chairman Eric Peltier will be chief innovation officer.
Novacyt said it expects "significant synergies" involving manufacturing, distribution and R&D. The company markets its NovaPrep liquid-based cytology screening platform for cancer detection. NovaPrep has CE Mark approval and marketing approval in Russia, Ukraine, Morocco and South Korea. Lab21 markets immunodiagnostic kits and reagents and provides testing services for cancer, HIV and hepatitis patients. The companies said Lab21 will market some of the consumables for NovaPrep. Novacyt had 2013 revenue of €1.2 million ($1.7 million). Lab21 declined to disclose 2013 sales figures. ...