Avacta Group announced on June 1, 2023, the acquisition of Coris BioConcept, a Belgium-based provider of rapid diagnostic kits, for an upfront cash consideration of £7.4 million with potential earnout payments of up to £3.0 million based on future business performance. The transaction represents a significant step in Avacta's strategy to build a comprehensive in-vitro diagnostics business through targeted acquisitions.
Strategic Expansion in Diagnostics Market
The acquisition aligns with Avacta's M&A-led growth strategy for its Diagnostics division, which aims to support healthcare professionals and broaden access to high-quality diagnostics. This move follows the company's October 2022 acquisition of Launch Diagnostics, a UK-based distributor that provided Avacta with established routes to market in the centralized professional healthcare sector, primarily in the UK and France.
"The acquisition of Coris provides the Group with a broad, professional-use rapid test product portfolio," said Dr. Alastair Smith, Chief Executive Officer of Avacta Group. "Complementing the acquisition of Launch Diagnostics last year, the Acquisition represents an important step in establishing a full-spectrum in-vitro diagnostics business covering centralised, pathology laboratory diagnostics, as well as decentralised, point-of-care testing solutions outside the hospital setting."
Coris BioConcept's Operations and Portfolio
Established in 1996 and based in Gembloux, Belgium, Coris develops, manufactures, and markets rapid diagnostic test kits, primarily lateral flow tests, for use by healthcare professionals. The company is ISO 13485 certified and distributes its products through partners across Europe, Asia, South America, Africa, and Oceania. For 2021, Coris's revenue distribution was 80% Europe, 12% America, and 8% from the Middle East, Africa, and Asia-Pacific regions.
The company's product portfolio comprises diagnostic tests for respiratory, gastroenteric, and blood-borne pathogens, including bacteria, viruses, and parasites, as well as tests for detecting antibiotic resistance markers. Coris also markets a COVID-19 lateral flow test, which has led Avacta to make the commercial decision to halt redevelopment of its own AffiDX® SARS-CoV-2 antigen lateral flow test.
Financial Performance and Infrastructure
Coris reported unaudited revenues of £4.6 million for the year ended December 31, 2022, with the majority being non-COVID-19 related. The company achieved approximately 50% gross margins for the FY21-22 period, with EBITDA of £0.35 million in FY22 and a loss-after-tax of £0.02 million. Net assets as of December 31, 2022, totaled £6.0 million.
The company employs 35 staff members across Production, Sales, Marketing, Quality Control, Regulation, and Administration. In March 2023, Coris completed construction of a new 10,700 ft² facility in Gembloux, housing production, offices, and warehouse space.
Focus on Antimicrobial Resistance Testing
Smith highlighted the strategic importance of Coris's antimicrobial resistance (AMR) testing capabilities, stating, "Antibiotic resistance is a major global challenge and we strongly believe that the market for antimicrobial resistance testing is one with good future growth prospects. We are particularly pleased, therefore, to have added an AMR product portfolio to the Group with this acquisition."
Integration and Future Development
The existing Coris management team will remain with the business and collaborate closely with Avacta's Diagnostics businesses to drive growth and improve margins through enhanced distribution channels and expanded product ranges. Avacta plans to transfer its lateral flow product development activities to Coris and support these efforts through ongoing development of Affimer® reagents for new products or to enhance existing ones.
