Avacta Group Regulatory News (AVCT)

Avacta Group plc

("Avacta" or "the Group")

Avacta Animal Health Signs Exclusive Supply Deal with IDEXX Laboratories

Partnership to supply acute phase protein testing to vets worldwide

Avacta Group plc (AIM:AVCT), a leading healthcare technology, reagents and consumables company providing proprietary analytical and diagnostics solutions to the life sciences/healthcare sector, is pleased to announce that Avacta Animal Health has entered into an exclusive agreement with IDEXX Laboratories (NASDAQ:IDXX) ("IDEXX"), to supply reagents for high throughput laboratory testing for C-reactive protein in dogs.

Under the terms of the agreement, Avacta will exclusively supply its proprietary diagnostic reagents for use with high-throughput bioanalysers in IDEXX reference laboratories. IDEXX receives global rights to use the diagnostic reagents to provide testing through its companion animal diagnostics services.

The supply agreement concerns diagnostic reagents to test for C-reactive protein (CRP) in dogs, for the early detection of acute inflammation or infection. This is one of the most common and clinically informative of the acute phase proteins for dogs. The global market for these tests is expected to be substantial and to grow as they become more widely available to vets through IDEXX' testing services.

IDEXX is a $1.2bn turnover global business focused on developing, manufacturing and commercialising products and services that use innovative diagnostic and information technologies to aid in the diagnosis and treatment of pets, livestock and humans, and to ensure the safety of water and milk. More than 80% of their revenues come from sales to veterinary practices that provide pet healthcare services.

Avacta has developed the CRP testing kit from the intellectual property that it acquired with Reactivlab, a spin-out from the University of Glasgow's world leading Veterinary School, in March 2010. Avacta has several other acute phase protein kits and tests in development for canine, feline, and also equine healthcare, and these developments will be an important part of Avacta's strategy of growing its proprietary reagents and diagnostics business.

Alastair Smith, Chief Executive of Avacta Group commented: "I am very pleased that we have quickly generated the first commercial product from the acquired intellectual property and gone on to achieve a supply agreement with the market leading veterinary diagnostics business. IDEXX is a tremendous commercial partner for Avacta Animal Health's tests and products. Their global reach and well-respected position in the veterinary diagnostics market should deliver scale to this opportunity rapidly. I anticipate that further acute phase protein test kits will be completed shortly so that we can expand the menu and this important commercial relationship."

Adam Potter, Marketing Manager at IDEXX Laboratories expressed: "IDEXX is excited to work with Avacta in bringing the C-reactive protein test to our Reference Laboratories. The use of Acute Phase Proteins is gaining momentum in companion animal diagnostics, and we want to bring this innovation to our customers."

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Notes to Editors:

Avacta Group plc, a leading healthcare technology, reagents and consumables company provides proprietary analytical and diagnostics solutions to the life sciences/healthcare sector through two operating divisions:

Avacta Animal Health provides diagnostic products and services for the $1.5bn global veterinary diagnostics market. Its aim is to equip veterinary professionals with high quality animal health and well-being information, through point of care diagnostics, reagents and testing kits and laboratory based testing. Avacta's AX-1 point of care immunoassay system is aimed at providing the veterinarian with rapid blood test results in the clinic. The initial range of tests launched with the AX-1 relates to Avacta's world leading allergy testing brand Sensitest®.Avacta is currently developing further assays for the AX-1 system to diagnose other diseases in companion animals. Longer term this technology will be transferred into the human clinical diagnostics market.

Avacta Analytical provides high-end analytical instrumentation and services to the biopharmaceutical sector, expected to be a $200bn revenues market by 2013 and the fastest growing part of the pharmaceutical industry. The Group's technologies are aimed at reducing the risks and expense associated with biological drug development and thereby reducing the final cost of drugs to patients. The Group's lead analytical instrument, Optim, is distributed through Pall Corporation in the US, Isogen Life Sciences in Europe, Cold Spring Biotech Corp in China and Taiwan and DKSH in Japan. Avacta sells Optim directly in the UK.

Avacta joined AIM in August 2006 and is based in Wetherby, England.