Avacta set for growth

The York-based firm, which was spun out of the University of Leeds, said contract service revenues for Avacta Analytical were on target and well ahead of last year.

Its recently launched flagship product Optim generated "significant commercial interest", it added.

In a trading statement it said "The installation of the first unit was completed late last year, and the customer is delighted with the significant operational advantages Optim has brought to their laboratory."

The firm also said revenues were up significantly from the same period last year at Avacta Animal Health. Midas, its animal health instrument, will be launched later this financial year, it said. Avacta's Midas device will test blood and serum samples.

Last week Avacta announced the purchase of vet test company Reactivlab for up to 5m.

It said: "The company believes that the business has great potential to deliver strong sales of these tests, commercialised as a laboratory service, in kit form and on the Midas point-of-care platform.

Alastair Smith, chief executive of Avacta, said: "Avacta's two divisions are growing strongly.

"Our two flagship products, Optim and Midas, will be key drivers of our growth in 2010 and beyond, delivering our strategy of commercialising our own innovative technologies and accelerating this growth through further acquisitions.

"Avacta addresses two huge global markets - biopharmaceutical development and veterinary healthcare - in a unique way to create a life science support group with many high growth opportunities.

"I am particularly excited by the excellent feedback received from the first Optim installation and by the launch, later this year, of our first veterinary diagnostic product, Midas, which has the potential to create significant recurring revenues through test cartridge sales."