NEW YORK, Sept. 8, 2016 /PRNewswire/ -- For a lot of observers of the IVD industry, it was not a question of if, but when, someone would buy Sunnyvale, CA-based Cepheid, according to Kalorama Information. The market research firm with an IVD specialty said that the company's notable molecular diagnostic innovations and its "Keurig-like" point-of-care testing machines attracted attention and the company achieved growth. Molecular point-of-care testing is covered by Kalorama Information in its report Kalorama Information's The Market and Potential for Molecular Point of Care Diagnostics
"No surprise as Cepheid reaches three pain points - infectious diseases which require fast results, near-patient systems that can realistically be part of a care scenario, and easy-to-operate systems," said Bruce Carlson, Publisher of Kalorama Information. "Their growth was as noticeable as their Royal Blue signature brand."
Kalorama said that Cepheid grew in the past few years at 8-9%, which the firm says is more than double the world IVD market's growth. Thus the news yesterday that Danaher, a Washington, D.C.-company that also owns Beckman Coulter and AB Sciex, grabbed the molecular testing upstart made a lot of sense to us, especially with Danaher's history of growth by acquisition. Danaher has been in IVD for 12 years, starting with the acquisition of Radiometer and has expanded the business via numerous subsequent acquisitions, including the acquisitions of Leica Microsystems in 2005, Beckman Coulter in 2011 - that really, made them big in IVD and HemoCue in 2013. The diagnostics business serves the clinical laboratory, acute care and pathology diagnostics markets.
Danaher is the 4th largest company in IVD, according to Kalorama.
The purchase is for 4 billion dollars, which is seven times earnings, as revenues were expected at $618 million this year. But Kalorama said the company's strength in infectious disease, particularly HAIs - hospital infections, and the growth rate likely justified a higher compensation.
"It's a testament to the interest in molecular point of care systems and in this the concern about HAIs and infectious disease generally," said Carlson.
The company's signature product, GeneXpert System, is a closed, self-contained, fully-integrated and automated platform that combines on-board sample preparation with real-time PCR (polymerase chain reaction) amplification and detection functions for fully integrated and automated nucleic acid analysis. The system is designed to purify, concentrate, detect, and identify targeted nucleic acid sequences thereby delivering answers directly from unprocessed samples. It's adjustable for different tests, which is helpful for labs that meet a lot of new challenges. Cepheid received FDA clearance to market its Xpert MRSA/SA Blood Culture (BC) test, which runs on the GeneXpert System, This updated Xpert MRSA/SA BC test processes positive blood culture specimens to determine if a patient's blood is infected with MRSA or SA within in an hour. June 2014, Cepheid announced the release of its CE Marked Xpert Carba-R, an on-demand molecular test for the detection of carbapenemase-producing Gram-negative bacteria (CRE). Carbapenemase-producing organisms are bad stuff. They were named for their ability to fight off carbapenem antibiotics — Carbapenems are often referred to as the antibiotics of last-resort and are usually reserved for severe life-threatening infections caused by multidrug resistant organisms. All of these organisms are capable of harboring and spreading these carbapenem resistance genes.
The company's technology is well-suited to adjust to changing jumped into the news during the Ebola epidemic last year. In March 2015, the FDA granted Emergency Use Authorization to Cepheid's Xpert Ebola, a PCR-based assay for Ebola virus that runs on the GeneXpert system. Danaher has grown through acquisitions and thus was a likely suitor.
To keep up with developments and to be knowledgeable about other Molecular Point of Care companies, Kalorama Information's The Market and Potential for Molecular Point of Care Diagnostics provides the current market, projected future sales and total available markets in 2020 for molecular POC diagnostics for flu, strep A, RSV, CT/NG, group B strep (GBS), HPV, HSV, vaginitis, HIV, TB, hepatitis, malaria and many other disease areas.
Please link any media or news references to our reports or data to http://www.kaloramainformation.com/.
About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama's website and are also available on www.marketresearch.com and www.profound.com.
We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog at www.kaloramainformation.com.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/danaher-cepheid-buy-a-big-event-but-not-a-big-surprise-says-kalorama-300324259.html
SOURCE Kalorama Information