British drugs testing company Cyprotex PLC on Thursday said it had bought American rival CeeTox Inc. from North American Science Associates Inc. (NAMSA). The acquisition will enable Cyprotex to expand its offer to the cosmetic and personal care industry.
Reuters, citing a statement by Cyprotex, said the drug testing firm would pay an initial £630,000 for CeeTox, plus a further 5% on specified net sales in the next four years to a maximum of £3.1 million.
Cyprotex chief executive Anthony Baxter said that the deal would help his company grow revenues significantly, primarily by offering more services to the cosmetics and personal care industry.
Investment research firm Morningstar Inc. in a separate report said Cyprotex is likely to continue to operate the CeeTox business from its current Kalamazoo, Michigan location for a certain period of time. Afterwards, CeeTox and its assets will be relocated to Cyprotex's US base in Watertown, Michigan.
NAMSA acquired CeeTox in 2005. It will retain the license for applying CeeTox's in-vitro toxicology expertise to medical device testing as part of the deal, the report said.
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