Quantum Pharma has announced the disposal of Total Medication Management Services Ltd, the group's homecare dispensary and delivery business that trades as Biodose Services, to HealthNet Homecare Ltd.
It said the disposal represented a major step in transitioning Quantum's focus to its core Specials and Niche Pharmaceuticals divisions and improving the Group's quality of earnings.
It followed the strategic review of the Medication Adherence (MA) division. Following the disposal the MA division would cease to exist, with Protomed being accounted for within the Specials division.
The initial cash consideration on disposal is £1.75m with a maximum additional contingent consideration of £0.2m, which would become payable on the future utilisation of tax losses of Biodose Services.
The initial consideration net of working capital adjustments, arising following the exit of Biodose Services from the Group, would be applied to reduce Group borrowings.
The effect on the Group's balance sheet is positive through a reduction in net debt.