Manchester-based molecular diagnostics firm Yourgene Health plc announced the conditional divestment of its Taiwanese subsidiary Yourgene Health Taiwan Co Ltd to INEX Innovate Pte Ltd, a Singapore based molecular diagnostics company focused on women’s and fetal health, for proceeds of up to £3.2 million.
Yourgene shares rose about 7% — but the stock has fallen about 97% over the past year, leaving Yourgene with a stock market value of only £7 million.
“As announced on 26 April 2022, given the challenges supporting, investing and growing the Taiwanese genomic service lab from the UK, the Yourgene board decided to conduct an operational and strategic review of its Taiwanese operations,” said the Manchester firm.
“As a result of this review the board decided to seek an acquirer for the group’s Taiwan-based business activities, whilst retaining ownership of its proprietary NIPT software, Sage Prenatal Screening, which underpins its wider NIPT offerings in Asia-Pacific and elsewhere.
“The divestment is conditional upon the acquirer being granted Taiwanese Government approval for the planned acquisition as required for non-Taiwanese acquirers.
“Yourgene will also need to complete a pre-closing restructure to facilitate the transfer of retained people and assets to other group companies.
“It is currently expected that these conditions will be satisfied within the next three months and that the closing date will occur before September 2023.
“The divestment will streamline the group’s operations, enabling Yourgene to focus its strategic efforts on expanding the core Asia-Pacific product-based activities whilst retaining a strong route to market in Taiwan and reduce the group’s ongoing expenditure by approximately £0.5m on an annualised basis.
“For the year ended 31 March 2023, on a post-restructure pro forma basis, Yourgene Health Taiwan had turnover of circa £2.0m and was profit breakeven.
“The proceeds from the divestment will be used for general working capital purposes in the Asia-Pacific region and in the pursuit of the group’s strategic objectives.”
Yourgene CEO Lyn Rees said: “We look forward to developing a lasting relationship with INEX as they act as our exclusive laboratory partner and service provider across Asia.
“We will update shareholders once the completion of the transaction has occurred in due course.”