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Omega Diagnostics Group PLC - Alva, Scotland-based diagnostics company - Completes sale of loss-making CD4 business to Accubio Ltd, a wholly-owned subsidiary of Chinese biotechnology firm Zhejiang Orient Gene Biotech Co Ltd. Sells business for £6.1 million, before costs. Company says CD4 will be more successful under new ownership. Receives an immediate cash payment of £1.1 million for the business's fixed assets and inventory. Expects to receive an additional £4.0 million for the business's intellectual property.
Chief Executive Jag Grewal says: ‘The disposal of our CD4 business completes the first phase of our turnaround plan, addressing the unsustainable cost base in Scotland and divesting our loss-making businesses. The sale now allows us to focus all our efforts on the profitable and cash generative Health & Nutrition division, maintaining our leadership position and targeting organic growth through geographical expansion, a broadening of our product offering and embracing digital technologies.’
Current stock price: 3.37 pence, up 5.3% in London on Wednesday
12-month change: down 93%
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