Benchmark Holdings PLC (LON:BMK) said it has agreed to sell its vaccine manufacturing assets at its facility in Braintree, UK to Cell and Gene Therapy Catapult for £16mln in cash.
The aquaculture genetics firm said the transaction was a “significant milestone” in its strategy to reduce its cost base and focus on its core areas to achieve profitability, adding that the proceeds will further strengthen its financial position and liquidity.
WATCH: Benchmark Holdings focused on making core business 'commercially profitable'
"I am very pleased to announce this transaction which is another significant step forward in our strategy of becoming a streamlined, profitable business focused on our key areas of competency. Benchmark is also delighted that the timing and conclusion of our vaccine strategy review coincides with the need to scale capabilities to manufacture human vaccines in response to [coronavirus] and that the talented team at Benchmark will become part of this critical effort”, said Benchmark chief executive Trond Williksen.
Chairman Peter George added: "I am extremely pleased that Benchmark has been able to be part of the UK solution for vaccine manufacturing. We were in the process of evaluating this sector when [coronavirus] broke, and following communications with Sir Patrick Vallance, the Government Vaccine Taskforce, and with special thanks to the hard work of Kate Bingham and her team, this is the outcome. I am delighted that we have a long-term solution for the workforce, which has always been our desired outcome. I would like to highlight the Government's foresight in identifying the possibilities here and moving quickly on this decision”.
"I am proud to say that Benchmark is exiting the Covid-19 lockdown period in a stronger financial position than we entered, due to our focus on completing our well developed restructuring programme", he added.
Benchmark shares jumped 2.6% to 38p in late-morning trading on Thursday.