Quidel will transition its BNP business to Beckman Coulter, including rights to the manufacture, distribution and sale of the assay
US-based diagnostic testing solutions provider Quidel has agreed to resolve its ongoing disputes with Beckman Coulter, over the Triage B-type natriuretic peptide (BNP) assay business.
The litigation started in 2017 when Beckman Coulter’s parent company Danaher sued Quidel soon after it acquired the BNP Business from Alere.
As part of the settlement, Beckman Coulter will withdraw the complaint against Quidel, filed in the Superior Court for the County of San Diego, California.
The BNP supply agreement allows for the transition of Quidel’s BNP business to Beckman Coulter, including rights to the manufacture, distribution and sale of the assay.
Beckman Coulter will pay Quidel a minimum cash payment of between $70m and $75m per annum through 2029.
Quidel has agreed to provide antibodies and certain other components related to the BNP assay to Beckman Coulter, during 2022 through and including 2029.
Beckman Coulter will exclusively manufacture and sell BNP assay, currently sold as TRIAGE BNP by Quidel, under the new brand name Access BNP, for use with Beckman Coulter analysers.
Quidel president and CEO Douglas Bryant said: “We are pleased to announce this agreement as this is a major step forward for both Quidel and Beckman Coulter, while supporting the healthcare customers we serve.
“The transactions resolve ongoing litigation that began shortly after Quidel purchased the BNP Business from Alere in October 2017.”
The consideration is expected to be pro-rated for 2021, based on the date of the initial commercial transition to Beckman Coulter, which is expected by late August this year.
Before Beckman Coulter rolls out its own assay to the market, Quidel would grant Beckman Coulter exclusive rights to distribute the Quidel branded BNP Assay in certain countries.
The commercial transition in all countries is expected to be completed before the end of 2021.
With the transition, Quidel would benefit from minimum payment arrangement through 2029, while Beckman Coulter from the uninterrupted supply of BNP assays to its customers.
Bryant added: “Entry into the agreements enable us to focus on expanding our core businesses and executing on our longer-term strategy while also creating a stable cash flow stream for the remainder of the term of the existing BNP supply agreement.
“For Quidel, the mission of democratising the benefits of diagnostic testing for infectious disease, heart health and other conditions at diverse points-of-care is our main priority and expected to continue to drive growth for our business.”