GTG selling Australian genetics business

Genetic Technologies (ASX:GTG) has agreed to sell its Australian genetics business as part of its refocus on the US molecular diagnostics market.

The company will sell the business to Primary Health Care subsidiary Specialist Diagnostics Services for $2 million in cash.

The business in question provides diagnostics and sequencing services including medical, forensic, paternity and animal genomic testing.

Genetic Technologies announced last week that it plans to restructure its business to concentrate on the US molecular diagnosis market.

The company is freeing up resources to concentrate on the upcoming launch of BREVAGenplus, the improved version of its genetic test for breast cancer risk. The new version is compatible for use by black and Hispanic women in addition to Caucasians.

In a statement, Genetic Technologies CEO Alison Mew said the divestiture “represents a material milestone in our transformation to becoming a streamlined and focused molecular diagnostics company committed to the commercialisation of flagship breast cancer risk test BREVAGen”.

Mew separately told Australian Life Scientist that the company “absolutely” plans to maintain its ASX listing after the restructuring and has no immediate plans to move its operations offshore.

Genetic Technologies (ASX:GTG) shares were trading 4% lower at $0.024 as of around 2 pm on Monday.