France-based biotechnology company bioMerieuxh has finalized the acquisition of 100%-ownership in the US-based molecular biology company BioFire Diagnostics.
On September 4, 2013, bioMerieuxh has announced an agreement to purchase BioFire Diagnostics.
bioMerieux claims that this acquisition enables the company to consolidate its position as a major player in infectious disease diagnostics and strengthens its presence in the US.
bioMerieux and BioFire will now begin integration process, focusing on leveraging the positive synergies between the two companies, and to drive FilmArray sales and menu expansion.
A wholly-owned subsidiary dedicated to the biodefense activities will be set up in order to meet the expectations of BioFire’s biodefense customers in the US. All the BioFire personnel, activities and equipment associated with the defense business are physically transferred to a protected and separate site in Salt Lake City.
The transaction includes a $450m acquisition price and bioMerieuxh’s net financial debt (around $35m), representing a total of €355m. Acquisition costs will amount to €6m to be recorded under non-recurring items (about €2m in 2013 and €4m in 2014).
This acquisition will be essentially funded through bioMerieux’s inaugural €300m issue of seven-year bonds.
Recently, BioFire has developed FilmArray, a multiplex PCR system that integrates all molecular diagnostics steps – sample preparation, amplification, detection and analysis – into one system.
FilmArray has introduced the syndromic approach to infectious disease molecular diagnostics. The device creates a new standard in this market with its essential combination of speed, accuracy, ease-of-use and comprehensiveness in one single assay.
The FilmArray has obtained CE Mark approval and approvals from the US Food and Drug Administration (FDA) Respiratory Panel and FDA Blood Culture Identification Panel.
FilmArray is a key differentiating asset in the development of bioMerieux’s franchise in infectious disease diagnostics, its primary area of expertise. FilmArray will benefit from the global and dynamic bioMerieux commercial network.
In addition, bioMerieux will contribute its capabilities to the automation of reagent production, thereby optimizing manufacturing costs.
bioMerieux chairman and CEO Jean-Luc Belingard noted the acquisition of BioFire creates strong growth opportunities.
"FilmArray®meets perfectly the growing hospital laboratory demand for high medical value solutions in infectious disease diagnostics, thus ideally complementing our current product offering, especially for emergency situations and critical care. We welcome our new employees and look forward to providing our worldwide customer base with our complete range of diagnostic solutions dedicated to infectious diseases," Belingard added.