Cyprotex has bought CeeTox in a bid to diversify its revenue base beyond its core pharmaceutical preclinical services business.
The UK preclinical contract research organisation (CRO) paid former owner North American Science Associates (NAMSA) an initial £630,000 in cash for CeeTox, in a deal worth a potential £3.1m based on the achievement of certain unspecified revenue goals over the next few year.
CeeTox's core business is the provision of in vitro toxicology services to the cosmetic and personal care industries, which was a key motivation for the deal according to Cyprotex CEO Anthony Baxter.
“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."
CeeTox also provides a range of assay services to the drug industry, including a test that helps drugmakers test if their products have a negative impact on mammalian hormone systems which was also a motivation for the deal according to Baxter.
"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.”
CeeTox CEO Tim Mitchell was equally upbeat about the deal.
“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.”
Integration plans have not been announced, however, one report suggested that Cyprotex plans to move the CeeTox business from its base in Kalamazoo, Michigan to its own US HQ in nearby Watertown.