Gentian Diagnostics divests its subsidiary PreTect AS
05. Nov 2020 |
2 min read
Gentian Diagnostics today announces the divestiture of its subsidiary PreTect AS to Mel-Mont Medical, Inc. The gross proceeds from the transaction is estimated to NOK 7.7 million and will have an effect from 30 September 2020. Per 30 September 2020 PreTect had operating revenues of NOK 2.6 million and an EBITDA of NOK -1.8 million. The transaction will result in a financial gain of approximately NOK 4.5 million which will be booked in the fourth quarter of 2020.
Gentian Diagnostics acquired PreTect AS in 2016 and has supported the development of clinical documentation pertaining to the relevance of PreTect’s HPV assays in the field of cervical cancer diagnostics- and prevention. Gentian is proud to have contributed to a large trial, in close collaboration with the University Hospital of North Norway in Tromsø, that has resulted in a unique data base with samples from more than 100,000 women. A publication based on these data has confirmed the advantages of using PreTect’s mRNA technology as an additional quality assurance to cytology in young women.
Despite these encouraging results Gentian Diagnostics has not been in a position to expand the sales of PreTect HPV assays to a satisfactory level. Therefore, following an internal review, Gentian has concluded that the future success of PreTect will be best served if the Company is under the direct ownership of a dedicated player in the market for HPV testing.
Commenting on the divestiture, Gentian Diagnostics CEO, Hilja Ibert says: "We believe that with Mel-Mont Medical’s existing business activity with self-sampling of HPV testing the combination with PreTect makes perfect sense. HPV testing is a highly specialised market which we believe will be better served by a focused player. We would like to thank PreTect’s highly motivated and professional team and all our collaborators for their contributions over these past four years."