Lab21 Ltd announced that it has purchased the majority shareholding of Biotec Laboratories Ltd. As part of the sale, Lab21 also acquires Biotec’s South African subsidiary, Biotec Laboratories SA which is a joint venture with the Cape Biotech Trust.
Commenting on the acquisition, Graham Mullis, CEO of Lab21 said, ‘Our goal is to grow Lab21 into a major international diagnostics business through both organic growth and acquisition – this transaction is an important step in that process. Our combined businesses, which have very complementary products, provide a great platform from which to build further our infectious disease and immunodiagnostic portfolio.’
Biotec Laboratories, has developed a portfolio of diagnostic products with a particular focus on infectious diseases. The two companies have had an ongoing commercial relationship, with Biotec Laboratories distributing some of Lab21 diagnostic products through its established global network of distributors in 80 countries worldwide. This will strengthen the Lab21 global reach, in particular in Africa and South America and will allow it to immediately access new markets for its products. Biotec Laboratories SA, based in Johannesburg, South Africa has developed proprietary phage amplification technology that is being used to develop rapid diagnostic and susceptibility tests for both active and Drug Resistant TB.
Dr Berwyn Clarke, Chief Scientific Development Officer of Lab21 added, ‘We look forward to working with the R&D team of Biotec and exploring how its phage amplification technology can be used for the detection of other mycobacterium borne diseases, beyond TB. The combination of our technical and clinical skills, and sector experience creates a very strong R&D group that can fuel significant new product development in both immunodiagnostics and molecular diagnostics over the coming years.’
Peter Ellis, CEO of Biotec Laboratories Ltd said, ‘In order to be internationally competitive, the UK’s Diagnostics sector has long needed consolidation and we are delighted with the sale of our business to Lab21 to help create a global leader in diagnostics and are convinced that the Biotec team can play a significant role in Lab21’s future expansion plans and success.’
The financial terms of the deal were not disclosed and the transaction takes immediate effect. For the immediate future, Biotec Laboratories will continue to trade as a subsidiary of Lab21 group.
Release Date: March 3, 2009
Source: Lab 21
Filed Under: Drug Discovery