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- Medlab Clinical (MDC) completes the divestment of its Australian Nutraceuticals business to PharmaCare
- The transaction for the Medlab branded nutraceutical lines will involve $2.2 million in cash from PharmaCare, in return for the transfer of specific Medlab intellectual property, pre-paid stock, and stock on order and in hand
- Medlab says the deal will enable it to make a saving of around $2 million annually on operating expenses, allowing it to better align its focus on areas of strategic growth
- Following the deal, and a research and development grant, Medlab says it will be in a strong cash position, with $13 million in the bank
- Medlab shares were up 5.56 per cent at the close of trading on Thursday to 20 cents each
Medlab Clinical (MDC) has completed the divestment of its Australian Nutraceuticals business to PharmaCare.
The transaction for the Medlab-branded nutraceuticals line will involve $2.2 million in cash from PharmaCare, in return for the transfer of specific Medlab intellectual property, pre-paid stock, and stock on order and in-hand.
Phase one of the deal is complete, with phase two — involving a two-year earnout — in place to be the greater of $250,000 or five per cent of net sales per year during the first two years.
Medlab said the deal will enable it to make a saving of around $2 million annually on operating expenses, allowing it to better align its focus on areas of strategic growth.
Both companies have agreed to work together on future product development, providing ongoing innovation to PharmaCare as well as an ongoing income stream to Medlab.
Following the deal, and a research and development grant, Medlab said it will be in a strong cash position, with $13 million in the bank.
Medlab said it’s fully focused on commercialising its Biotech assets, regulatory approvals, partnering and early market access initiatives.
Medlab shares were up 5.56 per cent at the close of trading on Thursday to 20 cents each.
