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Diagnostic Deals: A Roundup of the Key Mergers, Acquisitions, Alliances, Licenses and Other Strategic Transactions From the Past Month

by | Oct 24, 2017 | Deals-lir, Essential, Laboratory Industry Report

Deal volume was high during the month. But most of the deals were small and research-based. M&A It took over 18 months but the Abbott-Alere merger finally closed on Oct. 3. Alere got quite the haircut to make the deal happen. To keep Abbott from getting cold feet, Alere had to take at least $500 million off its acquisition price. To secure FTC antitrust approval Alere had to sell off its Triage business to Quidel and Epocal blood diagnostics unit to Siemens. And then on the eve of closing, Alere had to pay $13 million to settle with the US Securities and Exchange Commission which was investigating the accounting practices of its foreign subsidiaries. Abbott rival Quest Diagnostics was also active, acquiring Shiel Medical Laboratory in New York City from Fresenius as well as a pair of hospital outreach labs in neighboring Connecticut. One deal that did not come off was Rosetta Genomics’s $2.9 million sale of its PersonalizeDx business. On Oct. 10, Rosetta announced that buyer Pragmin Prognosis had failed to carry out its deal obligations leaving Rosetta to explore its legal options and search for a new buyer. Strategic Alliances As in M&A, quantity over quality was the […]

Deal volume was high during the month. But most of the deals were small and research-based.

M&A
It took over 18 months but the Abbott-Alere merger finally closed on Oct. 3. Alere got quite the haircut to make the deal happen. To keep Abbott from getting cold feet, Alere had to take at least $500 million off its acquisition price. To secure FTC antitrust approval Alere had to sell off its Triage business to Quidel and Epocal blood diagnostics unit to Siemens. And then on the eve of closing, Alere had to pay $13 million to settle with the US Securities and Exchange Commission which was investigating the accounting practices of its foreign subsidiaries.

Abbott rival Quest Diagnostics was also active, acquiring Shiel Medical Laboratory in New York City from Fresenius as well as a pair of hospital outreach labs in neighboring Connecticut.

One deal that did not come off was Rosetta Genomics's $2.9 million sale of its PersonalizeDx business. On Oct. 10, Rosetta announced that buyer Pragmin Prognosis had failed to carry out its deal obligations leaving Rosetta to explore its legal options and search for a new buyer.

Strategic Alliances
As in M&A, quantity over quality was the prominent feature of alliancemaking with research institutions and small genomics firms supplying most of the impetus. But there were a few commercial deals involving the big players, including:

  • The collaboration between PerkinElmer and 10x Genomics combining the former's Chemagic nucleic acid extraction technology Sciclone automation platform with the latter's Chromium instrument;
  • The co-marketing deal integrating Centogene's rare diseases database of annotated phenotype and genotype variants into Qiagen Clinical Insight bioinformatics platform; and
  • Becton Dickinson's collaboration with Euroclone to develop and globally distribute molecular tests to detect new sexually transmitted diseases.

Here's a graphic summary of the key diagnostic deals from late September through mid-October:

MERGERS, ACQUISITIONS & ASSET SALES
Acquiring Company Target(s) Deal Summary
Abbott Alere
  • Price: $4.6 billion in "aggregate consideration"—original (March 2016) price was $5.8 billion, which was cut to $5.3 billion in April 2017
  • Status: Closed Oct. 3
  • FTC approval contingent on sale of Alere's point-of-care testing businesses
Quidel Alere's triage MeterPro and B-type Naturietic Peptide (BNP) assay businesses
  • Price: $680 million, including $400 million purchase price, $240 million deferred for BNP + $40 million in contingent payments
  • Status: Closed Oct. 6
  • Quidel also acquires Triage's San Diego facilities
  • Quidel gains complete control over BNP
Siemens Alere's Epocal point-ofcare blood diagnostic unit
  • Price: Undisclosed
  • Status: Expected to close by end of Oct.
  • Sale required for FTC approval of Abbott acquisition of Alere
  • Siemens to also acquire 2 Alere facilities in Canada
Quest Diagnostics Shiel Medical Laboratory (owned by Fresenius Medical Care)
  • Price: Undisclosed
  • Status: To close in Q4
  • Deal doesn't include Spectra Labs, Fresenius' dialysis lab services business
  • Sides also agree to leverage Quest's lab data analytics to identify early-stage chronic kidney disease patients who may benefit from treatment to slow progression to end-stage renal disease
Quest Diagnostics William W. Backus Hospital and Hospital of Central Connecticut outreach labs
  • Price: Undisclosed
  • Status: Closed
  • Quest acquired outreach labs of Hartford HealthCare's Clinical Laboratory Partners in 2016
Konica Minolta Ambry Genetics
  • Price: Up to $1 billion cash, including $800 million upfront and up to $200 million over 3 years
  • Status: Expected to close in 3Q
  • European Commission OKs deal
  • Ambry to become subsidiary of Konica Minolta and keep its name and continue its genetic testing operation from its current California HQ
DiaSorin Siemens Healthineers
  • Price: €47.5illion ($55.3 million) on debt- and cash-free basis
  • Status: Closed first week of Oct.
  • DiaSorin acquires Siemens's microtiter-based ELISA immunodiagnostics business and related assets
  • Siemens to continue manufacturing and exclusively providing ELISA kits to DiaSorin for up to 3 years
  • DiaSorin paid $300 million cash for Quest's Focus Diagnostics' immunoassay and molecular Dx products in March 2016
Angle Axela (University of Toronto microarray spinout)
  • Price: £3.7 million ($4.9 million) to be financed by placement of new shares
  • Status: Acquisition agreement but no closing date announced
  • Angle to acquire intellectual property, fixed assets, inventory, employees and interest in leased property from Axela
Bruker Merlin
  • Price: Undisclosed
  • Status: Closing of previously announced deal
  • Bruker acquires German-based antibiotic-resistance and -susceptibility testing firm
Brooks Automation 4titude
  • Price: $65 million cash
  • Status: Closed
  • Brooks acquires UK-based scientific tools and consumables manufacturer that has grown 20% in past 2 years with revenues of roughly $14 million in past 12 months
Prescient Medicine PGxL Laboratories
  • Price: Undisclosed
  • Status: Closed
  • Prescient acquires Kentucky-based pharmacogenomics testing reference lab, including its LifeKit Predict service for predicting opioid addiction risks based on patients' genetic profiles
Precision for Medicine Epiontis
  • Price: Undisclosed
  • Status: Acquisition contingent on consummation of $3 million+ finance deal
  • Precision acquires German specialty lab which uses proprietary PCR-based technology to provide epigenetic immune cell assays for clinical trial immune monitoring
ScreenCell 3D Signatures
  • Price: $400,198
  • Status: Closed
  • ScreenCell acquires stake in French biotech company consisting of 2 million common shares via private placement
Avista Capital Partners Miraca Life Sciences
  • Price: $175.6 million
  • Status: To close in November
  • MLS to be owned by newly formed holding company called Symphony Buyer
  • MLS parent company Miraca Holdings to own 15% of Symphony Buyer's shares
STRATEGIC ALLIANCES, PARTNERSHIPS & COLLABORATIONS
Partner 1 Partner 2 Deal Summary
PerkinElmer 10x Genomics
  • Objective: Develop workflow to enable large-scale studies from samples like saliva and archived dried blood spots
  • Dynamic: Combine PerkinElmer's Chemagic nucleic acid extraction technology and Sciclone automation platform with the 10x Genomics' Chromium instrument
Qiagen Centogene
  • Objective: Co-marketing deal integrating Centogene's CentoMD rare diseases database into Qiagen Clinical Insight bioinformatics platform and companion knowledge base
  • Dynamic: Qiagen to become exclusive global commercial distributor of CentoMD while Centogene licenses Qiagen's software for its own rare diseases diagnostic testing
FDNA Murdoch Children's Research Institution + Victorian Clinical Genetics Service
  • Objective: Database integration and distribution
  • Dynamic: Use FDNA's Face2Gene software to integrate and exclusively distribute MCRI's POSSUMweb database
EKF Diagnostic Ortho Clinical Diagnostics
  • Objective: Widen access to EKF's beta-hydroxybutyrate (BHB) ketoacidosis diagnosis assay
  • Dynamic: BHB test to be made available as a validated MicroTip Partnership Assay under Ortho program providing validated third-party assays
Agena Bioscience N-of-One
  • Objective: Expand Agena's newly launched MassArray Insights molecular analysis reporting network
  • Dynamic: N-of-One to help interpret cancer genomic data generated by Agena's MassArray system
Agena Bioscience Molecular Health
  • Objective: Expand Agena's newly launched MassArray Insights molecular analysis reporting network
  • Dynamic: Molecular Health to use its MH Guide analysis platform to interpret raw data generated by Agena's MassArray system
Strata Oncology University of California, San Francisco
  • Objective: Research precision medicine treatment of metastatic prostate cancer
  • Dynamic: New StratifyProstate initiative to accelerate clinical trial enrollment by offering no-cost NGS testing to eligible metastatic prostate cancer patients who enroll
Inova Veritas Genetics
  • Objective: Provide whole-genome sequencing and interpretation services
  • Dynamic: Partnership to launch MyMap, new service leveraging Veritas's MyGenome NGS testing and Inova's MediMap pharmacogenomic testing for whole genome screening
Indica Labs MolecularMD
  • Objective: Move preclinical research to diagnostic setting and deploy advanced imaging analysis workflows
  • Dynamic: Leverage MolecularMD's diagnostic clinical testing solutions with Indica's digital biomarker analysis services
Knight Cancer Institute at Oregon Health & Science University Biological Dynamics
  • Objective: Early cancer detection research
  • Dynamic: Biological Dynamics to provide OHSU researchers early access to its Biological Dynamics' NanoVerita and ExoVerita lab-on-a-chip systems
Knight Cancer Institute at Oregon Health & Science University Tempus
  • Objective: Breast, pancreatic and prostate cancer treatment research
  • Dynamic: Tempus to provide molecular sequencing, analysis and decision support tools based on molecular, clinical and outcome data and OHSU to provide patient samples
Genomics England t Thermo Fisher Scientific + Inivata
  • Objective: Research use of liquid biopsy testing for improving disease management and outcomes for cancer patients
  • Dynamic: In phase 1 of study, Inivata to use its InVision circulating tumor DNA test and Thermo Fisher to use its liquid biopsy technology to analyze quality of blood plasma samples from Genomics England's 100,000 Genomes Project
  • Partners then to assess utility of liquid biopsy for t discovery of mutations that can lead to or indicate presence of cancer
Inivata Addario Lung Cancer Medical Research Institute
  • Objective: Early-stage non-small cell lung cancer treatment research
  • Dynamic: Perform study using Inivata's InVision circulating tumor DNA test in early-stage non-small cell lung cancer patients after surgery
Rainbow Genomics Baylor Genetics
  • Objective: Provide clinical exome sequencing tests to patients in Asia
  • Dynamic: Rainbow Genomics to offer screening and diagnostic exome sequencing-based tests developed by Baylor
  • Rainbow to use Baylor's Consultagene service to offer genetic counseling in English, Mandarin, Cantonese and Japanese
1CellBio Hangzhou Chengyuan Genomics Company
  • Objective: Provide single-cell analysis research services for China market
  • Dynamic: Reseller and licensing agreement under which Hangzhou will sell 1CellBio's InDrop instrument for single-cell RNA sequencing
  • Deal includes 1CellBio's kits and consumables
Seegene Hamilton
  • Objective: Development of Seegene random access system
  • Dynamic: Partnership integrating high multiplex real-time PCR testing on Hamilton's liquid handling platforms
Sema4 PWNHealth
  • Objective: Provide telehealth genetic testing services to consumers
  • Dynamic: PWN Health to supply physician oversight for Sema4's newly launched CarrierCheck genetic carrier screening test
  • PWNHealth to review consumer's health history to ensure test is appropriate and offer genetic counseling services to approved consumers
Nanion Technologies Cellular Dynamics International
  • Objective: Co-market CDI's human induced pluripotent stem cell-derived tissue cells with Nanion's ion channel drug discovery and screening platform
  • Dynamic: CDI to provide iPSC-derived differentiated cells and Nanion to provide on-site training for CardioExcyte with customers allowed to renew their contract or purchase the CardioExcyte 96 instrument at a discount at the end of the year
DxTerity City of Hope Medical Center
  • Objective: Develop blood test predicting if cancer patients would benefit from radiation therapy or are at risk for radiation toxicity
  • Dynamic: Conduct RADIANT radiotherapy response study on patients receiving radiation treatment to abdominal-pelvic region
Natera Aarhus University (Denmark)
  • Objective: Evaluate Natera's Signatera liquid biopsy assay for bladder cancer
  • Dynamic: Conduct study of more than 400 plasma samples collected from bladder cancer patients over course of their treatment
  • Aarhus to collect sequence data from patients' tumors while Natera designs custom circulating tumor DNA assays for each patient using its proprietary bioinformatics pipeline
UgenTec R-Biopharm AG
  • Objective: Create interpretation software for R-Biopharm's clinical PCR kits
  • Dynamic: UgenTec to develop a standardized software for automated quantitatively interpreting results of R-Biopharm PCR assays
Becton Dickinson Euroclone
  • Objective: Develop and globally distribute molecular tests to detect new sexually transmitted diseases
  • Dynamic: BD and Euroclone to develop and commercialize assays outside US beginning in 2018 and in US later
Opko Health (via BioReference Laboratories business) The Garage
  • Objective: Give physicians advanced tools to guide quality value-based care
  • Dynamic: Combine Garage's Bridge technology platform with BioReference's diagnostics expertise
Indivumed Helomics
  • Objective: Jointly provide cancer specimen research and clinical data analysis products and services
  • Dynamic: Customers of both companies get access to Indivumed's cancer database, biobank and European research laboratory, as well as Helomics' US-based analytical lab services for biospecimen analysis, CLIA testing capabilities and bioinformatics platform
Molecular Devices Cytena
  • Objective: Launch Cytena's CloneSelect single-cell printer in North America.
  • Dynamic: Terms of partnership not disclosed
DISTRIBUTION, SALES & MARKETING AGREEMENTS
Property Owner Distributor Deal Summary
AroCell Pathway Diagnostics
  • Product: AroCell's TK 210 ELISA test
  • Territories: UK and Ireland
Hema Diagnostic Systems (subsidiary of Generex Biotechnology Imerlab Sociedad Comercial Limitada
  • Product: Hema's Rapid 1-2-3 Hema HIV Express test
  • Territory: Chile
  • Exclusive
Oxford Nanopore Technologies Shanghai NanodigmBio
  • Products: Oxford's sequencing products and services
  • Territory: China (Shanghai)
  • Oxford already has significant presence in China market
Vector Laboratories MJS BioLynx
  • Products: Vector's labeling and detection reagents (specific labels not disclosed)
  • Territory: Canada
  • Exclusive
Abacus Diagnostica Launch Diagnostics
  • Products: Abacus's GenomEra product line, including automated GenomEra CDX platform
  • Territories: UK, Ireland, France, Belgium, Netherlands and Luxembourg
Illumina Lucigen
  • Products: Illumina's Epicentre portfolio of products
  • Expansion of Lucigen's existing sale and manufacturing rights to entire Epicentre line
  • Illumina named Lucigen exclusive global distributor of its Epicentre products in April 2017
Synthego Thermo Fisher Scientific
  • Products: Synthego's synthetic guide RNA products, which will be marketed and sold under the Thermo Fisher Invitrogen TrueGuide brand
  • Territory: Worldwide
Biocept Miraca Life Sciences
  • Products: Biocept's Target Selector liquid biopsy tests and services
  • Territory: US
  • Exclusive
Streck Orgentec Sasu
  • Products: Streck's cell stabilization and molecular products
  • Territory: France
Devyser Dahui Biotech
  • Products: Devyser's rapid prenatal aneuploidy diagnostic test kits
  • Territory: China
GenePeeks Bioiatriki
  • Product: GenePeek's newly launched preconception screening test
  • Territories: Greece and Cyprus
Sienna Cancer Diagnostics Axlab
  • Product: Sienna's in vitro diagnostic test for detecting hTERT component of telomerase
  • Territories: Denmark and Sweden
  • Exclusive
Molecular Biology Systems PreMed Lab
  • Product: MBS's NextGen PCR ultra-fast thermal cycler
  • Territory: China
Molecular Biology Systems Camlab
  • Product: MBS's NextGen PCR ultra-fast thermal cycler
  • Territory: UK
Molecular Biology Systems Ybux
  • Product: MBS's NextGen PCR ultra-fast thermal cycler
  • Territory: Czech Republic
Molecular Biology Systems Isogen Life Science
  • Product: MBS's NextGen PCR ultra-fast thermal cycler
  • Territories: BeNeLux and Spain
Territories: BeNeLux and Spain Pronto Diagnostics;
  • Product: MBS's NextGen PCR ultra-fast thermal cycler
  • Territory: Israel
Molecular Biology Systems Albiogen
  • Product: MBS's NextGen PCR ultra-fast thermal cycler
  • Territory: Russia
Premaitha Health Barker Medical
  • Product: Premaitha's Iona assay
  • Territory: South Africa
SpeeDx Diagen
  • Products: SpeeDx's PlexPCR and ResistancePlus real-time PCR product lines
  • Territories: Denmark, Sweden and Norway
SUPPLY, SERVICE & TESTING AGREEMENTS
Supplier/Servicer Client Deal Summary
Twist Bioscience Ginkgo Bioworks
  • Twist to synthesize a billion base pairs of synthetic DNA for Ginkgo
  • Ginkgo CEO calls deal a "historic purchase"

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