Avacta Group Share News (AVCT)

(Sharecast News) - Life sciences firm Avacta revealed on Friday that it has agreed to sell its UK-based diagnostics unit to Duomed Belgium for £12.9m in cash.

Avacta said the sale of Launch Diagnostics and its subsidiaries was expected to be completed by the end of April 2025, subject to customary closing conditions, with proceeds from the sale to be used to further its pre|CISION platform.

The AIM-listed firm stated the disposal was "a significant step" towards delivering a "key board objective" of the company becoming a pure-play biotechnology firm.

Avacta added that in order to complete the divestment of its diagnostics business operations, it was also in discussions regarding the sale of its remaining and much smaller Belgian-headquartered diagnostics unit, Coris BioConcept.

Chairman Shaun Chilton said: "The diversification into diagnostics over the last two years has been very disappointing. However, this disposal is a critical and necessary step forward in our corporate strategy to become a pure-play therapeutics company.

"This disposal, which followed an extensive auction process, realizes cash to support our growing R&D investment program and also enables the management to focus on the development of our unique proprietary pre|CISION technology platform."

As of 0925 GMT, Avacta shares had surged 9.82% to 39.81p.

Reporting by Iain Gilbert at Sharecast.com