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Oncimmune buys German diagnostics company

Oncimmune Holdings PLC acquired Protagen Diagnostics AG for up to £4.1 million.

Nottingham, U.K.-based Oncimmune will pay the purchase price by issuing up to 2,635,910 ordinary shares priced at 156 pence apiece.

Dortmund, Germany-based Protagen provides precision medicine and patient stratification tools used by pharmaceutical companies to develop drugs for immuno-oncology and autoimmune diseases.

According to Oncimmune, which develops products for cancer detection, Protagen's biomarker discovery capabilities complement the company's offering of in vitro diagnostics. In addition, the acquisition is expected to be cash neutral to Oncimmune within 12 months.

Oncimmune will retain Protagen's scientific team, while its laboratory in Dortmund, Germany will operate as discovery research center.

Meanwhile, Qiagen NV, an investor in Protagen, will receive up to 862,179 of the consideration shares to settle €2.6 million of convertible loan and accrued interest owed by the German company. The Venlo, Netherlands-based company will remain an investor in Protagen following the acquisition.