Avacta acquires Coris Bioconcept, adding a broad range of marketed professional-use rapid tests to the GroupAcquisition consistent with Avacta Diagnostics M&A strategy and complements earlier acquisition of Launch Diagnostics1 June 2023 -- London and Wetherby, UK --
Avacta Group, a life sciences company developing innovative, targeted oncology drugs and powerful diagnostics, is pleased to announce that it has acquired Coris Bioconcept SRL for an upfront cash consideration of £7.4m (on a debt-free/cash-free basis and subject to customary working capital adjustments), with an earnout based on future business performance, payable in cash, of up to £3m.
Avacta’s Diagnostics division is driving ambitious growth through an M&A-led strategy with the aim of supporting healthcare professionals and broadening access to high quality diagnostics. The strategy is focused on both acquiring routes into the diagnostics market and appropriate IP-rich product portfolios. The first acquisition, Launch Diagnostics in October 2022, provided the group with a well-established route to market in the centralised professional healthcare market, primarily in the UK and France.
Coris, based in Gembloux, Belgium, and established in 1996, develops, manufactures and markets rapid diagnostic test kits, mainly lateral flow tests, for use by healthcare professionals. Coris is ISO 13485 certified and markets its products through distributors in Europe, Asia, South America, Africa and Oceania. Coris’ revenue splits for the year ended 31 December 2021 were: 80% Europe; 12% America; and 8% from the Middle East, Africa and Asia-Pacific.
Unaudited revenues for the year ended 31 December 2022 were £4.6m, the majority of which were non-COVID-19 related. FY21-22 gross margin was approximately 50%, with EBITDA in FY22 of £0.35m and a loss-after-tax of £0.02m. Net assets as at 31 December 2022 were £6m.
Operationally, Coris employs 35 members of staff split across Production, Sales, Marketing, Quality Control, Regulation and Administration. In March 2023, the business completed the construction of a new 10,700ft2 production, offices and warehouse facility in Gembloux.
Coris’ product portfolio comprises diagnostic tests for respiratory, gastro-enteric and blood-borne pathogens (bacteria, viruses and parasites) and for the detection of antibiotic resistance markers. As part of this portfolio, Coris markets a COVID-19 lateral flow test. Due to this, Avacta has taken the commercial decision to halt the redevelopment of its own AffiDX SARS-CoV-2 antigen lateral flow test.
The existing Coris management team will remain with the business and work closely with Avacta Diagnostics businesses to drive growth and margins through improved distribution channels and an expanded product range. Avacta will transfer its lateral flow product development activities to Coris and support that activity through ongoing development of Affimer reagents for new products or to enhance existing ones.
Dr Alastair Smith, CEO of Avacta Group, commented: “The acquisition of Coris provides the Group with a broad, professional-use rapid test product portfolio. Complementing the acquisition of Launch Diagnostics last year, the Acquisition represents an important step in establishing a full-spectrum in-vitro diagnostics business covering centralised, pathology laboratory diagnostics, as well as decentralised, point-of-care testing solutions outside the hospital setting. Antibiotic resistance is a major global challenge and we strongly believe that the market for antimicrobial resistance (AMR) testing is one with good future growth prospects. We are particularly pleased, therefore, to have added an AMR product portfolio to the Group with this acquisition. With this acquisition, our Diagnostics division has taken another important step towards realising its mission to support healthcare professionals and broaden access to high quality diagnostics.”About Avacta Group
Avacta Group is a life sciences company working to improve people’s health and well-being through innovative oncology drugs and powerful diagnostics. Operating through two divisions, Diagnostics and Therapeutics, the Group’s mission is to provide professionals and consumers with solutions that improve healthcare, fitness and well-being. Avacta’s Diagnostics Division develops and supplies a broad range of in-vitro diagnostic (IVD) solutions. The Division is growing rapidly through an M&A strategy to deliver a global scale IVD business providing market leading solutions for healthcare professionals and consumers to inform treatment and monitor health and well-being. In October 2022, Avacta acquired Launch Diagnostics which serves the hospital pathology laboratory market in the UK and Europe. In May 2023, Avacta acquired Coris Bioconcept a Belgium based lateral flow test developer and manufacturer adding a broad range of marketed professional-use rapid tests into the Diagnostics Division. Avacta Diagnostic’s research and development centre in Wetherby, UK uses its proprietary Affimer platform to differentiate immunodiagnostic products to provide marketing leading performance. Visit: www.avacta.com