M&A Report

PerkinElmer Turns COVID Cash into Acquisitions While Myriad Genetics Keeps Divesting

After a frantic month marked by an unusually high number of blockbusters, M&A deal making was relatively slow in May in terms of both deal volume and value. Still, the pace of strategic M&A transactions has just about returned to where it was before the pandemic as massive COVID-19 cash windfalls burn a hole in test makers’ pockets. Here’s a quick rundown of the two biggest deal makers and the diametrically opposite strategies they’re pursuing.

PerkinElmer Continues Its Buying Spree

No diagnostics firm has made more M&A deals in 2021 than PerkinElmer. With 146% net operating cash flow growth in the first quarter of 2021, PerkinElmer’s cash flow exceeded its total for all of 2019, or in any other year for that matter. The firm is now parlaying that COVID-generated cash into strategic acquisitions. It began in January when PerkinElmer plunked down $591 million to acquire Oxford Immunotec in an apparent bid to challenge Qiagen for the tuberculosis testing market. This month, the company made two more big M&A moves.

On May 13, PerkinElmer announced that it had reached an agreement to buy Nexcelom Bioscience for $260 million in cash. Founded in 2003, Nexcelom produces tools and instruments for cell counting and analysis, as well as fit-for-purpose cell counting method selection and development instruments that follow ISO cell counting standards for use in development of cell, gene, and immune-oncology therapies, virology drugs, and vaccines. PerkinElmer CEO Prahlad Singh said the acquisition would expand the company’s “efforts to help academic, government, and biopharmaceutical organizations streamline their complete workflows and support efforts to accelerate time to target and time to market for novel therapies.”

Four days after the Nexcelom buy, PerkinElmer struck again by agreeing to shell out $155 million in cash for Immunodiagnostic Systems (IDS) to bolster its immunodiagnostics business. PerkinElmer plans to fold the UK-based firm’s chemiluminescence products for endocrinology, autoimmunology and infectious diseases into its Euroimmun business. “This proposed transaction is highly valuable for both parties as the respective product lines are to a large extent complementary,” noted Euroimmun CEO Wolfgang Schlumberger in a statement.

Myriad Genetics Continues Its Selling Spree

Myriad Genetics, which is under new management, has been pursuing the precisely opposite strategy by divesting assets as part of a strategic corporate restructuring. Over a span between April 27 and May 26, Myriad announced three sell-off deals, including in reverse chronological order:

  • Sale of its Myriad RBM contract research services for the pharmaceutical industry to IQVIA subsidiary Q² for an undisclosed price with the deal scheduled to close in the third quarter;
  • Sale of its Vectra blood-based proteomic rheumatoid arthritis test and related intellectual property and assets to LabCorp for $150 million in cash; and
  • Sale of its Myriad myPath Melanoma Utah lab and test to Castle Biosciences for $32.5 million in cash.

The divestitures, which are likely to continue, enable Myriad Genetics to focus on its core women’s health, oncology and mental health while freeing up growth capital for future investment.

Here’s a summary of the key new M&A diagnostic deals announced in late April and May 2021:


Acquiring Company Target(s) Deal Summary
PerkinElmer Immunodiagnostic Systems (IDS)
  • Price: $155 million all-cash deal
  • Status: Expected to close in Q3
  • PerkinElmer bolsters its immunodiagnostics segment by acquiring maker of immunoassays and automated immunoanalyzer technologies, with IDS to be integrated into Euroimmun
PerkinElmer Nexcelom Bioscience
  • Price: $260 million in cash
  • Status: Expected to close in Q2
  • Acquisition of Massachusetts-based provider of tools and instruments for cell counting and analysis with expected annual revenues of $40 million
Ginkgo Bioworks Dutch DNA Biotech
  • Price: Undisclosed amount consisting of cash, equity and earn-out payments to shareholders upon achievement of technical and commercialization milestones
  • Status: Expected to close in July
  • Acquisition of Netherlands-based producer of fungal biotechnology processes for industrial production of enzymes, proteins and organic acids
Discovery Life Sciences Targos Molecular Pathology
  • Price: Undisclosed
  • Status: Closed
  • Acquisition of German-based provider of standardized clinical biomarker development services to pharma and diagnostic customers builds on Discovery’s 2019 purchase of immunohistochemistry services provider QualTek Molecular Laboratories
NeoGenomics Inivata
  • Price: $390 million
  • Status: No closing date announced
  • NeoGenomics exercises option to acquire remaining equity stake in liquid biopsy startup which is developing assays for cancer diagnosis and treatment and which will become a new division of the company
CellCarta (previously called Caprion-HistoGeneX) Reveal Biosciences
  • Price: Undisclosed
  • Status: Closed
  • Acquisition of artificial intelligence-based pathology firm bolsters CellCarta’s AI-enabled multiomic data analysis services and applications
Exact Sciences PFS Genomics
  • Price: $30.6 million in cash
  • Status: Closed
  • Exact acquires 90% equity stake in firm that has developed a screening test for early-stage invasive breast cancer patients to identify who may benefit from radiotherapy treatment
New England Biolabs Fluorogenics
  • Price: Undisclosed
  • Status: No closing date announced
  • UK-based lyophilization R&D service company to become wholly-owned subsidiary and part of NEB’s OEM and Customized Solutions business
Soulbrain Holdings PixCell Medical
  • Price: Approximately $40 million,
  • Status: Closed
  • South Korean semiconductor firm, which had recently acquired PixCell, acquires all controlling shares of point-of-care blood analyzer company as part of its strategy to enter point-of-care testing market
Q² Solutions Myriad Genetics
  • Price: Undisclosed
  • Status: Expected to close in Q3
  • Myriad continues restructuring by selling off Myriad RBM unit which provides contract research services for pharmaceutical industry after selling Vectra to LabCorp (see below)
LabCorp Myriad Genetics
  • Price: $150 million in cash
  • Status: Expected to close in Q3
  • LabCorp to purchase assets and intellectual property related to the Vectra rheumatoid arthritis test that Myriad acquired via its 2014 acquisition of Crescendo Bioscience
Castle Biosciences Myriad Genetics
  • Price: $32.5 million in cash
  • Status: Expected to close in Q2
  • Castle expands dermatologic cancers tests pipeline via acquisition of Myriad myPath Melanoma test and Utah CLIA lab that performs it
Oncocyte Chronix Biomedical
  • Price: Price: $2.675 million in cash + $1.5 million of Oncocyte common stock; Oncocyte also assumes $5.5 million in Chronix liabilities and will pay share on net collected revenues for certain tests, as well as up to $14 million in cash or stock if certain milestones are achieved
  • Status: Closed
  • Merger enabling Oncocyte to acquire Chronix’s cancer immunotherapy monitoring test, TheraSure-CNI Monitor, and organ transplant monitoring technology patents
Todos Medical Provista Diagnostics
  • Price: $1.25 million in cash upfront + $1.25 million cash payment before July 1 + $1.5 million in Todos common stock priced at $.0512 per share + $3.5 million convertible promissory note
  • Status: Closed
  • Israel-based Todos bolsters presence in U.S. market via acquisition of Provista’s Videssa proteomic breast cancer test and a PCR- and ELISA-capable lab currently performing SARS-CoV-2 testing

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