Small, Strategic Acquisitions Prevail in Closing Days of 2012

In the closing days of 2012 economic uncertainties prevailed, including matters that would directly impact the financial future of the diagnostics industry. The fate of the research and development tax credit and the budget health of the National Institutes of Health weighed heavily on medtech investors. Other economic stresses, like the impending 2.3 percent excise tax on the medical device industry and the 2013 increase in federal capital gains tax rates, loomed. Overall, mergers and acquisitions in the life sciences industry were down, experts say around 33 percent compared to 2011, and given investors’ reservations there were no blockbuster acquisitions in the waning days of 2012. Instead the diagnostics industry saw a series of small transactions primarily driven by methodical moves—calculated divestitures, solidification of intellectual property (IP) portfolios, and strategic enhancements to existing product lines. Dec. 31—Access Genetics (Eden Prairie, Minn.) acquired Quest Diagnostics’ (Madison, N.J.) OralDNA labs. The salivary diagnostics unit was divested as an ongoing part of Quest’s reorganization to concentrate on services for physicians and hospitals, the company said. OralDNA serviced the dental industry. Terms of the deal were not disclosed. Dec. 28—Miami-based OPKO Health made two December acquisitions to expedite its commercial launch of its 4Kscore […]