Biotechnology company VASTox has strengthened its drug discovery pipeline and pharmaceutical services business after it bought two companies. The Oxfordshire-based group has spent £16.5 million adding drug discovery company DanioLabs and specialist carbohydrate chemistry service Dextra Laboratories to its operations.

Biotechnology company VASTox has strengthened its drug discovery pipeline and pharmaceutical services business after it bought two companies. The Oxfordshire-based group has spent £16.5 million adding drug discovery company DanioLabs and specialist carbohydrate chemistry service Dextra Laboratories to its operations.

These deals add clinical and pre-clinical neurological and ophthalmic disease programmes to VASTox’s operations. They also enhance its expertise and capabilities in zebrafish chemical genomics and carbohydrate chemistry.

DanioLabs was bought for £15 million, satisfied in more than 11.7 million new ordinary shares and £159,000 in cash. Under the terms of the agreement, 10 per cent of the consideration has been deferred for 12 months. The Dextra deal was agreed for £1.5 million worth of VASTox’s ordinary shares.

The acquirer has inherited a research facility in Cambridge and 37 employees through buying DanioLabs with non-executive Dr Andrew Richards joining the enlarged group. The Dextra acquisition adds a chemistry operation in Reading and 17 employees to VASTox’s business.

VASTox specialises in a range of drug discovery programmes in the clinical, pre-clinical and discovery stages of development that target serious diseases. These therapeutic areas include neuro-disorders, anti-infectives, ophthalmic diseases, oncology and regenerative medicines.