Drug development and healthcare group Avacta has acquired Reactivlab, a veterinary diagnostics business, for up to £5 million.

Drug development and healthcare group Avacta has acquired Reactivlab, a veterinary diagnostics business, for up to £5 million.

Reactivlab was spun out of the University of Glasgow by its founder Professor David Eckersall in 2006. The company has developed blood tests that help to identify a range of health problems in animals, and will join Avacta’s veterinary medicine division, which specialises in allergy tests.

Alastair Smith, chief executive of Avacta, says the deal brings together Reactivlab’s expertise in veterinary testing and Avacta’s ability to commercialise animal healthcare products.

In the year to July 2009, Avacta reported revenue of £944,000 and pre-tax losses of £2.8 million.