Under the deal, Amarantus secured 80 million shares of Avant common stock, which is worth around $25.6m.

The acquisition will allow Avant to develop novel diagnostic assets in the areas of oncology and neurology.

Amarantus Diagnostics produces MSPrecise neuroimmunology-based next-generation sequencing diagnostic assay and LymPro neuroimmunology-based flow cytometry assay.

MSPrecise is a neuroimmunology-based diagnostic assay for multiple sclerosis (MS), while LymPro test has been developed for Alzheimer’s disease (AD).

Avant produces OvaDx immuno-oncology diagnostic assay, which is a protein-based test that will be used to screen and diagnose ovarian cancer.

Amarantus president and CEO Gerald Commissiong said: "The sale of Amarantus Diagnostics to Avant was an important step for the Company as we continue to streamline our focus on our therapeutic portfolio.

"As we move forward, the Company will be investing the majority of its resources on the clinical development of the Engineered Skin Substitute (ESS) program for the treatment of severe burns, a program that is expected to enter human clinical trials in the second quarter of this year.

"In parallel, the Company continues to evaluate value-building strategic options for all of its therapeutic assets, including ESS, Eltoprazine and MANF."

Image: Avant Diagnostics has acquired Amarantus’ diagnostic division. Photo: courtesy of stockimages / FreeDigitalPhotos.net.