VASTox acquires both Daniolabs and Dextra

Vastox, a biotechnology firm specializing in the use of chemical genomics for drug discovery, has acquired two fellow UK businesses: Daniolabs, a privately-held drug-discovery company, and Dextra Laboratories, a specialist carbohydrate chemistry service company.

Cambridge, UK-based Daniolabs was bought for L15.0 million ($29.4 million) through the issue of 11,732,361 new 10 pence shares and cash of L159,000 to DanioLabs' existing shareholders based on a VASTox share price of 126.5 pence. Dextra was acquired for L1.5 million, through the issue of 1,185,771 new 10 pence ordinary shares to Dextra's existing shareholders.

In a note to investors, Michael Aitkenhead, an analyst for Evolution Securities, said that the purchased companies are highly synergistic with VASTox' existing services unit and internal therapeutic programs. "Firstly, it makes VASTox a leading player and one-stop-shop in the field of zebrafish-based drug discovery and carbohydrate chemistry services. Secondly, the company's pipeline has been broadened and advanced with the addition of Daniolabs' clinical/preclinical programs in neurology and eye diseases," he said.