Source BioScience to acquire Select Pharma

International laboratory services and products business Source BioScience has conditionally agreed to acquire the entire issued share capital of Select Pharma Laboratories Ltd for a total cash consideration of up to £7.3 million.

The proposed acquisition, conditional upon the approval of the Company’s shareholders, is being part funded by the issue of 31,383,749 new ordinary shares, representing approximately 10% of the current issued share capital, at an undiscounted placing price of 14p per share.  

It is believed that the proposed acquisition will create one of Europe’s strongest and most comprehensive businesses for integrated stability storage and stability testing services.The enlarged Group will have the capability to offer an enhanced portfolio of bioanalytical laboratory services from facilities accredited by the Medicines and Healthcare products Regulatory Agency (‘MHRA’) and the US Food and Drug Administration (‘FDA’), with the enlarged group operating from ten facilities in five countries.

Dr Nick Ash, CEO of Source BioScience, said:

“The proposed acquisition of Select will provide the Company with the expertise and capability to provide stability testing services that are highly complementary with the Group’s existing stability storage services. The Select team will bring significant experience and knowledge which will enable the Group to meet increasing demand for stability and pharmaceutical batch release testing services, from a broad spectrum of customers and from territories that Source BioScience does not currently address.

“This proposed acquisition fits squarely with our stated objective of continued expansion through targeted acquisitions, to enhance the breadth and depth of our portfolio of services, in conjunction with ongoing organic growth and development of the existing business.”