Medical Solutions to buy Geneservice for £3.86m, move it to Nottingham
Medical Solutions plc (MLS.L), the diagnostics and healthcare group specialising in histopathology and cytology services and products, said it will acquire Cambridge-based Geneservice Ltd for £3.86m.
Geneservice, a profitable, expanding private firm, offers genomic products and technology services for applications in life sciences and clinical research and development. Geneservice revenue for the year to end February grew by 35% to £2.4m.
Medical Solutions said the acquisition was in line with its strategy to grow its healthcare and diagnostics business by enhancing its portfolio to include DNA and RNA based techniques.
The company said there would be cost savings from the acquisition “largely based on the relocation of some or all of Geneservice's operations from Cambridge to Nottingham.”
Geneservice’s CEO Tom Weaver (pictured) will join Medical Solutions Board. Dr Weaver holds a PhD in Oncology and is a member of the scientific advisory boards of Cambridge Genetics Knowledge Park, SmartBead Technology and the UK Bio-Industry Association's panel on Bioinformatics.
Medical Solutions MD Nick Ash said “There is an increasing demand from within the pharmaceutical and biotechnology industry for gene expression analysis as part of their research and development programmes.
“In addition, the emergence of pharmacogenomic analysis to support clinical development of therapeutics requires the type of molecular analysis offered by Geneservice.Geneservice's expertise in this field will greatly enhance the Group's offering and be a valuable addition to our growing portfolio of diagnostic services. Medical Solutions and Geneservice bring together complementary skills which will ensureMedical Solutions retainsits position as aleading provider of diagnosticand healthcare serviceswithin the UK.”
Geneservice was spun out from the Medical Research Council facility in Cambridge in August 2005. It employs around 35 people.
Medical Solutions also has an established diagnostics offering with particular strengths in immunohistochemistry and fluorescence in situ hybridisation. The company said the combination of this and an extensive tissue bank, and providing access to ethical tissue supplies, is a powerful offering for both the healthcare sector and the drug development community, including pharmaceutical and biotechnology companies, particularly with accelerating interest in 'targeted' therapies, which require the quantitative evaluation of relevant biomarkers as part of the drug development process.
8th June 2007
