Syntopix plans to buy Yorkshire firm

The Bradford-based group, which was spun out of Leeds University, said it planned to acquire the entire issued share capital of Leeds Skin Centre for Applied Research for a total consideration of £900,000.

Syntopix also announced a placing to raise £2m, before costs, by means of the issue of 50m new ordinary shares at 4p per share.

Leeds Skin is a private company based in Wetherby, West Yorkshire, that runs an independent commercial testing facility specialising in human skin microbiology and clinical dermatology research.

Leeds Skin also provides laboratory service to the pharmaceutical, personal products and healthcare industries. The client base includes Boots, L’Oreal, Stiefel, a GlaxoSmithKline company, and PZ Cussons.

It reported unaudited turnover of £514,000 and an operating profit of £149,000 for the nine months to December 31 2010. The acquisition is expected to be earnings enhancing.

Dr Stephen Jones, the chief executive of Syntopix, said: “The acquisition of Leeds Skin is a pivotal transaction for Syntopix. The significant cell biology experience of Leeds Skin will complement our own microbiological expertise, aiding development of Syntopix products. A key attraction was Leeds Skin’s world leading LabSkin technology, a unique human equivalent skin which we can use to model various properties associated with human skin - anti-inflammatory, anti-ageing.

“Together, we will have the capacity to run both clinical and laboratory studies to make rational choices of active compounds and confirm product claims. I am confident this will put the company in an extremely strong position to identify and develop products in-house to treat a variety of skin problems.

“Leeds Skin is a profitable company with an impressive client base and I am very excited about working with the team in this new phase of Syntopix’s evolution.”

The directors of Syntopix have convened a meeting for 11am on May 23 where shareholders will be given the chance to approve the acquisition and share placing.