Lab21 and Novacyt agree merger deal

Lab21 has announced that it will be combining with Novacyt, a diagnostics manufacturer that produces cancer detection solutions in liquid-based cytology.

The stock-for-stock transaction will see Cambridge-based Lab21, a global specialist in personalised medicine and clinical diagnostics, becoming a 100 percent subsidiary of Novacyt, with the combined group to be rebranded.

It is thought that the merged business will create an emerging diagnostics leader, with a wide portfolio of cancer and infectious diseases diagnostic products and services. It will operate in France, the UK, China and Australia, with its distribution network covering more than 100 countries.

Novacyt's research and development capacities have been identified as significantly complementary to the commercial infrastructure, manufacturing and extensive network of collaboration partnerships of Lab21.

Graham Mullis, chief executive officer of Lab21, said: "Ultimately, this transaction is expected to drive significant value for both sets of shareholders."

This comes after Lab21 expanded its distribution partnership with Quidel earlier this year, allowing it to bring AnDiaTec's Real-Time PCR Tests to the UK market.