Boots has acquired the loss-making trading subsidiary of MyHealthChecked plc.
The listed entity has become a cash shell after Cardiff-based Concepta Diagnostics, which delivers at-home health testing kits alongside a digital platform, was snapped up for a reported £2.375 million.
Pharmacy giant Boots has helped to develop the platform since 2021 and especially following its launch in May 2023.
The disposal has completed following shareholder approval.
CEO Penelope McCormick is to join Boots as managing director of Concepta, with non-executive chair Adam Reynolds becoming executive chairman of the cash shell MyHealthChecked, which will now change its name.
“Although positive long-term growth is a realistic expectation for wellness testing, the value potential can only be realised via distribution through a variety of services; testing embedded as part of a wider healthcare ecosystem; and the evolution of healthcare driven by government policy,” McCormick said last month when the prospective deal was first announced.
“During this past year, operational costs have not been offset by COVID sales, demand for which has declined significantly, and despite growth in the sales of wellness tests and tight cost controls, the loss for H1 of the current year has been broadly comparable to the prior year.
“We have regularly updated shareholders throughout the development of a longstanding working relationship with Boots, which has potential to be a significant player in the growth of home testing. As we look to the future, we have identified Boots as the right partner to take forward the MHC portfolio and drive home-testing as part of a wider range of healthcare services.”