Abingdon Health plc (AIM: ABDX), a leading international medical device contract development and manufacturing organisation (CDMO), announces it has signed a lease to open a commercial office and laboratory in Madison, Wisconsin, USA. The site will commence operations in October 2024 and is expected to become fully operational in early 2025.
This US footprint will enable Abingdon to provide additional CDMO support to its broadening international customer base and be closer to large customers in North America.
The USA is the largest medical device market in the world, comprising over 40% of the global medtech market and containing over 6,500 medtech companies1. Abingdon has built a portfolio of valued US customers across its various service solutions and the Board believes there is a timely and significant opportunity to expand its US customer base. A number of potential US customers have requested CDMO services to be delivered / supported from the USA. This is in part linked to a continued drive towards onshoring in the US, but also a prerequisite for projects that form part of US-based tender awards or qualify for US grant funding. The Board believes that the new US site, as well as building the Group’s capabilities in the US, will expand the number of possible commercial opportunities available. Circa 30% of Abingdon’s revenues in the last financial year were derived from the United States.
The Group’s newly incorporated wholly owned subsidiary, Abingdon Health USA Inc, will operate from the University Research Park in Madison, Dane County, Wisconsin. Madison and the surrounding area and state have long been regarded a healthcare and life sciences centre in the US. In fact, in July 2024, US Senator Tammy Baldwin announced that Wisconsin was selected as one of 12 national Tech Hub applicants awarded a Phase 2 Implementation Grant under the U.S. Economic Development Administration’s (EDA) Regional Technology and Innovation Hubs (Tech Hubs) program2, to support the state in growing its personalized medicine and biohealth technology industry. In addition, Wisconsin offers Abingdon additional ample opportunities in the veterinary and agricultural sectors, both traditional areas of strength for the Group.
As previously disclosed on 8 October 2024 in the Final Results announcement; in order to support the next phase of Abingdon’s growth, the Board announced the following management changes:
– Dr Chris Hand will move to Executive Chairman and lead Abingdon’s operations with immediate effect.
– Chris Yates, CEO, will lead Abingdon’s USA expansion and global commercial activities in the UK, Europe, US and other territories.
Abingdon is in the process of recruiting a Chief Financial Officer and will further strengthen its Board by adding an additional independent Non-Executive Director.
These hires will bring Abingdon in line with QCA Corporate Governance Code recommendations on Board composition. The Group will update on these new appointments in due course.
Chris Yates, CEO of Abingdon Health plc, commented:
“I’m looking forward to driving Abingdon’s worldwide commercial activities and, in particular, expanding our customer base in the US, the largest med-tech market globally. Our laboratory site in the US will mean we can offer US customers the opportunity to buy their services in the US; this is a first step for Abingdon to provide a broader CDMO proposition from within the US market. I’d like to thank Chris Hand for his flexibility in moving to an Executive role to support these changes. His experience and expertise will be invaluable in maintaining full business continuity, scaling our operations, and facilitating this expansion into the US.”
Chris Hand, Executive Chairman of Abingdon Health plc, commented:
“Expansion into the USA is a key step in the Group’s growth plans, and I am pleased that Chris Yates has accepted the challenge to lead the establishment of Abingdon’s US base in Madison, WI; oversee our US operations; and manage our global commercial activities. We have a strong operational team at Abingdon, and I am delighted to take on an expanded executive role to facilitate Chris Yates’ ability to focus on our US expansion and global sales growth.”
Lisa Johnson, CEO of BioForward Wisconsin, commented:
“On behalf of the biohealth community in Wisconsin, we welcome Abingdon Health to Madison. Abingdon Health is a leader in lateral flow diagnostic technology with a unique, end-to-end value proposition for its customers. As a publicly-traded UK company with a global presence, their decision to open a US office here in Wisconsin provides yet more evidence of our state’s growing stature in personalized medicine and biohealth technologies. We look forward to Abingdon Health complementing and strengthening our biohealth ecosystem, and bringing more economic impact and jobs to Wisconsin.”
Notes
1https://www.advamed.org/medical-device-industry-facts
2 https://www.eda.gov/funding/programs/regional-technology-and-innovation-hubs
Enquiries
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Abingdon Health plc |
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Chris Yates, Chief Executive Officer |
Via Walbrook PR |
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Chris Hand, Executive Chairman
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