Lab21 completes merger with Novacyt

Lab21 has announced the completion of its merger with Novacyt, becoming a wholly-owned subsidiary of the latter company.

The stock-for-stock transaction, which was announced at the end of last month, will see the combined entity rebranded in the near future. The deal received significant shareholder support and is expected to generate significant value.

In the near-term, the focus will be on integrating the two businesses at an operational and commercial level and preparing for further growth. The new-look company is already seeking to develop key distribution partnerships and is launching its key product Novaprep in new territories, including China.

It will also be strengthening its board structure and has begun searching for an industry and public market-experienced chairman.

Following the completion of the merger, a refreshed commercial strategy – which will focus on the Novaprep technology and involve investment in marketing, a direct sales channel and an expanded international distributor network – will be launched towards the end of 2014.

Graham Mullis, chief executive officer of the combined company, said: "We look forward to integrating the two businesses and accelerating our commercialisation programme, which will be heavily focused on the Novaprep platform."