Cyprotex acquires business and assets of CeeTox, Inc
Cyprotex PLC (AIM:CRX), a specialist ADME-Tox Contract Research Organisation, today announces the acquisition of the business and assets of CeeTox, Inc, ("CeeTox") a division of North American Science Associates, Inc ("NAMSA").
CeeTox, based in Kalamazoo, MI, USA, is a Contract Research Organisation specialising in the provision of in vitro toxicological assays and screening data, principally to the Cosmetic and Personal Care Industries. Founded in 2003, CeeTox was acquired in 2005 by NAMSA, a medical research organisation supplying expert consulting, clinical and laboratory services to medical device, IVD and biologics manufacturers. NAMSA retains a license for applying CeeTox's in vitro toxicology expertise to medical device testing. CeeTox had sales of approximately £2.3 million in the year ended 30 September 2013 and made an operating loss of approximately £0.9 million. The initial consideration for the purchase of £0.63 million is funded by internal cash resources, with a further consideration of 5% payable on specified net sales achieved in the next four years to a maximum of £3.1 million. The purchase is made by the group's US trading subsidiary, Apredica, LLC. The impact of the acquisition is expected to be earnings neutral in the first year.
It is expected that Cyprotex will continue to operate the CeeTox business from its Kalamazoo location for a period of time prior to relocation of the business and assets to Cyprotex's US base in Watertown, MA.
Commenting on the acquisition, Dr Anthony Baxter, CEO of Cyprotex, said: "The acquisition of CeeTox and its world-respected in vitro toxicology assays affords Cyprotex the opportunity to grow revenues significantly. Principally, it enables the Company to offer a more complete assay and screening service to the Cosmetics and Personal Care Industry, already an expanding customer segment, and will materially extend the Company's footprint in its established core Pharmaceutical and Agrochemical industry markets.
"The innovative assays and screens that CeeTox has developed over its 10-year life are complementary to our existing comprehensive platform. In particular, we are excited by the potential for selling the Endocrine Disruptor Screening Programme (EDSP) service to both current Government agency customers and to industrial chemical companies."
Mr. Tim Mitchell, CEO of CeeTox, added: "We are delighted that, in acquiring the CeeTox business, Cyprotex is committed to both maintaining our reputation for innovative high quality science and to growing our existing customer base. The combination of our two businesses represents an outstanding opportunity to leverage our capabilities and capitalise on the enormous market potential across a variety of industries that require in vitro toxicity screening services."