The combination of Heslington, York-based Avacta with Curidium is intended to create a stronger diagnostics business that is expected to deliver new technology and tests in point-of-care human diagnostics and personalised medicine.
The boards of Avacta and Curidium believe that the business of the enlarged group will benefit from the combination of Avacta’s expertise in developing new technology products and services, and its ability to commercialise diagnostics intellectual property, with Curidium’s expertise in the biology of disease and personalised medicine, underpinned by its existing cash resources.
Based upon a closing price of 2.25 pence per Avacta share on 8 January 2009, the recommended offer values each Curidium share at 32.6 pence and Curidium’s existing share capital at approximately £6.18m.
The recommended offer will be conditional on, among other things, the approval of the Avacta shareholders and the approval of Curidium shareholders.
Dr Barry Porter, chairman of Curidium, said: ‘The combination of Avacta and Curidium creates an entity that will have significant potential in the diagnostics field.
‘Curidium’s expertise in the underlying mechanisms of human diseases, combined with Avacta’s existing business activities presents a number of opportunities to accelerate the commercialisation of Curidium’s products.’