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M&A Report: The Top 15 Diagnostic Deals of 2022

by | Jan 3, 2023

M&A activity in the clinical diagnostics space was significantly down in 2022 in terms of both deal volume and deal value.

Reflecting wider trends affecting the general healthcare market, M&A activity in the clinical diagnostics space was significantly down in 2022 in terms of both deal volume and deal value. What makes this somewhat surprising is that M&A dealmaking had rebounded in 2021, albeit at nowhere near pre-pandemic levels. Here’s an overview of what happened during the past year.

The Top 15 Diagnostics Deals of 2021

There were only four deals with a reported value in the billions of dollars, as compared to seven in 2021 and six in 2020. One potential explanation is that dealmakers kept a tighter lid on deal terms, with acquisition prices undisclosed in nearly 50 percent of all reported M&A deals during the year. Among the transactions in which the prices were reported, or subsequently disclosed via Securities and Exchange Commission (SEC) filings, here are the 15 largest by deal value.

Top 15 Diagnostic M&A Deals of 2022 (By Deal Value)

RankBuyerTargetReported Price
1QuidelOrtho Clinical Diagnostics$6 billion cash + stock + assumption of $2 billion in Ortho debt
2Thermo Fisher ScientificThe Binding Site Group£2.25 billion ($2.60 billion) cash
3WerfenImmucor$2 billion
4SD Biosensor +
SJL Partners
Meridian Bioscience$1.53 billion cash + other financing
5Devyser DiagnosticsSmartSeq€835,000 ($942,500) cash + stock
6Sema4GeneDx (from Opko Health)$623 million cash + stock
7LabcorpPersonal Genome DiagnosticsUp to $575 million
8BioMérieuxSpecific Diagnostics$416.8 million cash
9Ginkgo BioworksZymergen$300 million stock
10Opko HealthModeX Therapeutics$300 million stock
11RocheGood Therapeutics$250 million cash
12Maravai LifeSciencesMyChem$240 million cash
13Exact SciencesPreventionGenetics$190 million cash + stock
14Guardant HealthGuardant Health AMEA$177.8 million cash
15Fulgent GeneticsInform Diagnostics$170 million cash
Source: G2 Intelligence

Biggest Deal (by Dollar Value): Quidel’s $6 Billion Acquisition of Ortho Clinical Diagnostics

In 2021, there were two different diagnostics M&A deals valued in the tens of billions of dollars—Thermo Fisher Scientific’s $17.4 billion acquisition of PPD, Inc., and Siemens Healthineers’ purchase of Varian Medical Systems for $16.4 billion. A third deal, Danaher’s $9.6 billion takeover of Aldevron, nearly reached the 10-figure mark.

By contrast, this year’s biggest diagnostics M&A deal, Quidel’s acquisition of Ortho Clinical Diagnostics, had a value of only $6 billion. Even so, the new Quidel Ortho combination forms a powerhouse offering an expanded array of clinical chemistry, molecular diagnostics, immunoassays, and point-of-care diagnostics in over 130 countries. In addition to expanding its global reach, teaming with Ortho bolsters and diversifies Quidel’s new product pipeline.

Top 5 Most Impactful Diagnostics M&A Deals of 2022

Don’t be fooled by the relatively low deal numbers and values. A number of the M&A transactions signed and/or consummated in 2022 will have a major impact on the clinical diagnostics market for years to come. Here’s our Top 5 for future impact:

1. Labcorp’s Acquisition of Personal Genome Diagnostics

While Labcorp and Quest Diagnostics continued to gobble up clinical labs from hospitals and health systems, Labcorp made a strategic play to bolster its genetic testing profile by acquiring next-generation sequencing test maker Personal Genome Diagnostics at the start of the year for $450 million and up to another $125 million in contingent milestone payments.

2. Meridian Bioscience Is Acquired by SD Biosensor

South Korean diagnostics firm SD Biosensor made a dramatic move into the US market by cutting a deal to acquire Meridian Bioscience for $1.53 billion. The deal was supposed to close in Q4, but has been pushed back to Q1 2023 while SD Biosensor gets its financing in order.

3. Thermo Fisher’s Acquisition of The Binding Site Group

Thermo Fisher Scientific boosted its specialty diagnostics profile by agreeing to shell out £2.25 billion ($2.60 billion) in cash for The Binding Site Group, a UK-based company with over 1,000 employees that produces assays and instruments for blood cancers and immune system disorders. The firm has been growing at an annual 10 percent clip.

4. Sema4’s Acquisition of GeneDx from Opko Health

In May, Sema4 closed its $623 million acquisition of GeneDx from Opko Health. Founded by a pair of NIH scientists in 2000, GeneDx is a genetic testing company specializing in rare and ultra-rare disorders. The acquisition enables Sema4 to offer precision testing for a broader range of diseases. By divesting GeneDx, a firm it picked up in its 2015 acquisition of BioReference Laboratories, Opko Health basically shut down day-to-day activity in the molecular diagnostics space to focus on pharma development and its remaining BioReference-branded diagnostics assets.

5. Roche’s Acquisition of Good Therapeutics

Roche advanced its immuno-oncology efforts by acquiring Seattle biotech Good Therapeutics for $250 million. The Swiss diagnostic giant took over global development and commercialization of a PD1-regulated IL-2 receptor agonist program, while shifting the rest of Good Therapeutics’ assets to a new spinout called Bonum Therapeutics.

Illumina Clings to Grail

Meanwhile, last year’s biggest story in diagnostics M&A, Illumina’s $8 billion acquisition of its former spinoff Grail, continued to make headlines in 2022. Illumina has vigorously defended its decision to close the deal without regulatory approval from the European Union but faces major sanctions, including a penalty of 10 percent of worldwide gross income. Illumina continues to hold Grail as a separate entity while it awaits word of whether it will have to unwind the acquisition.

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Here’s a summary of the key M&A diagnostic deals that were signed or closed in December 2022:

Mergers, Acquisitions, & Asset Sales

Acquiring CompanyTarget(s)Deal Summary
FujifilmInspirata·       Price: Undisclosed
·       Status: Expected to close in Q1 2023
·       Acquisition of Inspirata’s global digital pathology business, including Dynamyx digital pathology software, enables Fujifilm to bridge technological gap between pathology, radiology, and oncology
Quest DiagnosticsNorthern Light Health·       Price: All cash at undisclosed price
·       Status: Expected to close Q1 2023
·       Quest to acquire select assets of Maine healthcare system’s Northern Light Laboratory outreach lab business
·       Part of a larger strategic collaboration for Quest to provide management services for the system’s cancer center lab and 9 of its hospital labs
Quest DiagnosticsSumma Health·       Price: Undisclosed all cash deal
·       Status: Closed
·       Quest acquires Ohio-based healthcare system’s outreach lab services business, called LabCare Plus
·       Quest labs in Twinsburg, Ohio, and Pittsburgh to provide testing for LabCare Plus clients, while Summa Health continues to wholly own and operate its own hospital lab
Berkeley LightsIsoPlexis·       Price: $57.8 million all-stock deal with IsoPlexis shareholders to receive 0.612 shares of Berkeley Lights stock for each IsoPlexis share
·       Status: Expected to close in Q1 2023
·       Combined company, to be called PhenomeX, will specialize in functional cell biology with live-cell research tools
Integrated DNA Technologies (IDT)Invitae·       Price: $48 million cash
·       Status: Closed
·       IDT acquires Invitae’s Archer next-generation sequencing research-use assays, including the VariantPlex, FusionPlex, LiquidPlex, and Immunoverse panels, powered by Invitae's anchored multiplex PCR (AMP) technology, as well as a related bioinformatics platform
·       Invitae licenses its AMP technology and enters into supply agreement to support Invitae's Personalized Cancer Monitoring services
ProPhase LabsStella Diagnostics·       Price: $4.5 million, including $3.5 million cash and $1 million in ProPhase common stock, plus another $2 million of ProPhase common stock upon achievement of a revenue-based commercial milestone within 5 years after closing, plus 5 percent royalty on the adjusted gross margin from commercialization of the intellectual property
·       Status: Expected to close in Q1 2023
·       ProPhase acquires exclusive rights to Stella Diagnostics' BE-Smart Esophageal Pre-Cancer screening test and related intellectual property assets
CompuGroup Medical US (CGM)Medicus Laboratory Information Systems (Medicus)·       Price: Undisclosed
·       Status: Closed
·       Acquisition of Florida-based laboratory information systems developer from Diagnostic Systems Consulting boosts CGM’s presence in US market
Molecular DevicesCellesce·       Price: Undisclosed
·       Status: Closed
·       California bioanalytical measurement systems provider acquires Welsh company focusing on contract development and large-scale manufacturing of patient-derived organoids (PDOs) for drug screening and toxicity testing
Bionano GenomicsPurigen Biosystems·       Price: Up to $64 million, including $32 million cash at closing "subject to adjustment for, among other things, cash, unpaid indebtedness, unpaid transaction expenses, and net working capital relative to a specified target,” with balance contingent on achievement of certain milestones
·       Status: Definitive agreement to acquire expected to close before end of year
·       Acquisition of company that develops and commercializes automated nucleic acid extraction and purification solutions using proprietary isotachophoresis (ITP) technology
Prenetics GlobalACT Genomics·       Price: $20 million cash plus 19.9 million shares of Prenetics ordinary stock
·       Status: Signed agreement with no closing date announced
·      Prenetics to acquire undisclosed majority stake in Hong Kong-based precision oncology firm

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