VASTox acquires Daniolabs and Dextra Laboratories to strengthen its drug discovery pipeline and pharmaceutical services business
VASTox plc announced that it has completed the simultaneous acquisition of DanioLabs Ltd ("DanioLabs"), a private UK drug discovery company, and Dextra Laboratories Ltd ("Dextra"), a specialist carbohydrate chemistry service company.
According to the company, these deals represent an important strategic step for VASTox as they strengthen and diversify its drug discovery and development pipeline through the addition of two clinical and two pre-clinical programmes in neurological and ophthalmic diseases, which will provide increased near-term opportunities for high-value licensing and partnership deals; enhance its scientific expertise and capabilities in zebrafish chemical genomics and carbohydrate chemistry; and boost its scientific infrastructure through the acquisition of two high-tech laboratory facilities in Cambridge and Reading. These technology platforms are crucial to VASTox's ability to create value as they underpin its internal drug discovery and development programmes as well as forming a basis for the enhanced growth of its profitable pharmaceutical services business.
In addition, the strengthened technology platforms will immediately increase the revenues generated by the service business and also offers the potential for an increase in number of higher-value collaboration deals with its now enlarged client base.
Daniolabs (Cambridge, UK) has been acquired for £15 million payable through the issue of 11,732,361 new 10p ordinary shares and cash of £159,000 to DanioLabs' existing shareholders based on a VASTox share price of 126.5p, calculated as an average share price over a ten-day period ending 20 March 2007, the last business day before the deal was concluded. Of the consideration shares, 1,173,233 shares will deferred and issued in one year's time provided there are no warranty claims during the intervening period. At 31 July 2006, DanioLabs recorded net assets of £2.74m and a loss on operating activities before taxation of £2.76m. The CEO and CFO of DanioLabs will step down with immediate effect. VASTox will retain Daniolabs' scientific research facility in Cambridge and all 37 remaining staff will take up new positions within the enlarged Group.
Dextra Laboratories (Reading, UK) has been acquired for £1.5 million, payable through the issue of 1,185,771 new 10p ordinary shares to Dextra's existing shareholders, based on a VASTox share price of 126.5p, calculated as an average share price over a ten-day period ending 20 March 2007, the last business day before the deal was concluded. On 30 September 2006 Dextra recorded net assets of £0.17m and a profit on operating activities before taxation of £0.07m. VASTox will retain Dextra's state-of-the-art chemistry facility in Reading with all 17 Dextra employees becoming employees of the enlarged VASTox.
The acquisitions are expected to complete by 28 March 2007 when the shares will be admitted to AIM.
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