RE: 10p by the end of the day on cards.8 Mar 2021 11:10
(AIM: CPT ) announces that it has agreed to outsource manufacturing for myLotus® with Abingdon Health allowing the Company to focus on product commercialisation.
The Company has signed various agreements with Abingdon Health Ltd ("Abingdon Health"), a leading UK rapid test developer and manufacturer, to acquire Concepta's lateral flow test manufacturing site in Doncaster, for the technical transfer of the manufacturing processes, the further development of Concepta's lateral flow devices, and for the continuing contract manufacturing and supply of myLotus® testing strips.
As part of the asset purchase agreement, Concepta will assign the leases on the facility and machinery, transfer the staff, and will sell residual manufacturing equipment to Abingdon Health. Under the agreement Concepta will receive a total cash consideration of approximately £0.3m.
The change in manufacturing strategy follows the announcement made on 29 January 2020 to further improve the efficiency of the Company's cost-base. Having already achieved a 30% cost reduction across the Company, this move to outsource manufacturing is expected to generate annualised overhead costs savings of at least £0.23m.