AIM-listed Irish contract research firm Venn Life Sciences has agreed to sell its subsidiary, Innoven, for £4.7m (€5.3m).
The move is effectively a company split that will position Innoven to also float on London's Alternative Investment Market.
Innoven is developing and marketing a living skin product.
"The directors believe the sale will allow the group to concentrate on its core activities of drug development and clinical research services," said Venn Life.
"The sale will help to simplify the financial affairs of Venn allowing for a clearer communication and understanding of the underlying value in its core business."
The main shareholders in the Integumen, which is acquiring Innoven, are Venn Life chief executive Tony Richardson, and Innoven managing director Declan Service.
They will own less than 1pc once share are issued the vendors of Innoven, which are a subsidiary of Venn Life, and Cayman Islands-based Helium Rising Stars Fund. The fund is managed by ISPartners, a hedge fund manager based in Zurich. The fund is co-managed by David Newton and Christian Benz.
The Venn Life subsidiary has converted a loan to Innoven into equity, boosting its stake in Innoven to 70pc.
Integumen plans to acquire the business of Innovenn and complementary businesses in the areas of skin science, oral health, and woundcare.
Integumen plans to seek admission of its shares to trading on AIM and plans to raise capital to fund the future development and commercialisation of the technology portfolio. Advisors have already been appointed to handle the activity.
Prior to a potential listing and fundraise Integumen will fund its activities out of existing cash reserves and a bank loan facility for €1m which Venn currently guarantees.
In addition to the acquisition of Innovenn, Integumen is in the process of acquiring three additional businesses.
The first of these transactions will be completed by way of the purchase of assets of a skin-care company, currently listed on US over-the-counter market, and owner of a consumer skincare brand.
In addition to Innovenn and the US acquisition, Integumen has agreed terms to acquire a European based Oralhealth company. Finally Integumen will complete the acquisition of a woundcare business with products in development in the areas of wound diagnostics and infection control.