Hertfordshire-based biotechnology company Asterand has acquired US drug discovery business BioSeek for up to $13 million (£8.5 million).

Hertfordshire-based biotechnology company Asterand has acquired US drug discovery business BioSeek for up to $13 million (£8.5 million).

BioSeek was founded in 2000 with the backing of venture capital investors Bay City Capital and Fremont Ventures. As part of the deal, chief scientific officer Ellen Berg and Ivan Plavec, vice president of business development, will join Asterand’s senior management team, while CEO Mike Venuti will continue to act as a consultant.

Martyn Coombs, CEO of Asterand, which specialises in human tissue research, says that BioSeek has technology that is difficult to replicate and anticipates that the acquired business will be marginally loss-making in the first year of ownership but will contribute to earnings thereafter.

In the nine months to September 2009, Asterand reported an increase in revenue of 14 per cent to £9.1 million.