Yourgene Health PLC (LON:YGEN) have announced that they have made a purchase in France.
The firm said that they have acquired AGX-DPNI SAS, €2.4 million with an additional €1.7 million based on sales performance.
The health diagnostics firm added that it has raised gross proceeds of £2.5 million through a share subscription.
The subscription involved the allocation of 17.5 million new shares which were priced at 14.4p per share.
Lyn Rees, CEO of Yourgene, commented:
“The Acquisition of our French distributor makes sense for Yourgene on a number of levels. This has an immediate and positive impact on earnings and is an opportunity to fully capitalise on our rising NIPT sales in this growing market alongside our current direct sales of additional reproductive health products. This also allows us to gain maximum benefit from the launch of our Illumina-based IONA® test and increases our ability to range-sell additional content into France and beyond.
“Whilst this provides us with our first direct commercial presence in Europe, and gives us an EU-based presence post-Brexit, it also opens up access to high growth French speaking African and Middle Eastern markets not previously addressed by Yourgene. I would also like to thank BGF for their continued support for our ambitious growth strategy.”
Yourgene see strong few months
At the start of December, the firm saw its’ shares in green from a positive update.
The molecular diagnostics group said that in the six months ended September 30, its’ revenue doubled to £7.8 million from £3.9 million in the comparative period a year ago.
Notably, gross profit rose to £4.7 million from £2.0 million which will impress shareholders in a period of tough market conditions and stiff competition.
Yourgene said in order to deliver growth, it is focusing on product penetration, geographic expansion, products expansion, and acquisitive growth. Its said pure organic growth during the first half was 56% with non-Elucigene revenue of £6.1 million, and it has made a “very good progress” in expanding its’ commercial footprint into new territories.
The firm reported that pretax loss had also narrowed to £1.3 million from the £3.5 million figure in the first half of financial 2019.
Yourgene added that it has achieved its’ first ever positive earnings before interest, tax, depreciation and amortization of £300,000, swung from loss of £2.5 million a year before