Premaitha Health to buy Taiwan's Yourgene Biosciences
Staff Writer | December 21, 2016
Premaitha Health, a maker of non-invasive prenatal screening system, is to buy Taiwan's Yourgene Biosciences.Article continues below
The acquisition of the Yourgene Biosciences, which distributes non-invasive prenatal screening systems, is subject to shareholder approval and will be paid in the issue of 76.05m shares at 9p each and $500,000 in cash.
As well as its base in Taiwan, Yourgene Biosciences has a commercial hub in Singapore and generates annual sales of about £2m from across South East Asia and India. The company said that it broadly breaks-even at this level.
The acquisition will become unconditional following the passing of the resolutions at the next shareholder meeting on 10 January, the London Stock Exchange agreeing to admit the shares to trade on AIM and regulatory approval required by Taiwanese law, which is expected to occur by no later than January 31.
The company said the acquisition will enable it expand in Asia, offers cross-selling opportunities and the potential to reduce intellectual property risks through geographic diversification such as to enter the Chinese market where there are about 17m births per year and a strategy to decentralise testing as part of the Chinese government's healthcare reforms.
Yourgene Biosciences has a patent granted in Taiwan, a territory where there is no registration of patents equivalent to those being used by Illumina in European litigation, and it has also filed applications for this patent in China, the US and Europe. ■ What to read next
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