Rockeby axes Chinese aquisition talks

Perth-based biotechnology company Rockeby biomed has withdrawn from acquisition talks with Chinese company Beijing AnHeal Laboratories Co.

Two years ago, Rockeby announced it had entered into a conditional agreement to acquire a 40 per cent interest in AnHeal for $US4.75 million ($A7 million).

Under the deal, AnHeal was required to undergo a national audit, which it did so in October 2007.

Since then, Rockeby said it had been negotiating improved terms and conditions with AnHeal shareholders however no significant progress had been made.

As a result, the Rockeby board decided to terminate negotiations.

"This is a disappointing result but Rockeby will continue to seek new opportunities and strengthen its lifestyle health and rapid testing product range and distribution channels," managing director Sze-Wee Tan said.

The deal was to provide Rockeby with immediate nationwide distribution channels in China for distribution of its rapid test kits and related veterinary products for avian influenza.

Shares in Rockeby were unchanged at 0.1 cents at 13:29 AEDT.