Premaitha Health to buy Yougene Bioscience

Premaitha Health has agreed to buy Taiwanese company Yourgene Bioscience (Manchester Evening News, 2016).

Premaitha, based at Manchester Science Park, uses the latest technology in DNA analysis to develop safer, faster non-invasive screening tests for pregnant women. The company said the acquisition of Yourgene Bioscience will enable it expand in Asia, offering cross-selling opportunities and the potential to reduce IP risks through geographic diversification. Asia offers various opportunities for a company like Premaitha. For example China, which has about seventeen million births a year, has a strategy to decentralise testing as part of the Chinese government’s healthcare reforms.

Premaitha, which is listed on AIM, said the deal would be satisfied by the issue of seventy six million shares at 9p each and a cash consideration of $500,000 to be funded out of Yourgene’s existing cash reserves.

Dr Stephen Little, chief executive of Premaitha Health, said “We are extremely excited about the transaction with Yourgene and their like-minded management team who have demonstrated their commitment to the enlarged group through a significant shareholding. They have successfully established a highly complementary business in South East Asia and we look forward to working together to build a truly global force in this emerging sector. The board believes that Asia Pacific will be a key region for driving sales growth, and Yourgene is an important enabler for the newly enlarged Premaitha group.”

Addleshaw Goddard’s Manchester corporate team advised Premaitha Health on the deal.

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