Kalorama: More IVD M&A Likely in Changing Acquisitions Landscape
ROCKVILLE, Md., Jan. 18, 2017 /PRNewswire/ -- In vitro diagnostic (IVD) companies were very active in 2016 with respect to mergers and acquisitions (M&A), and Kalorama Information expects that trend to continue – though the reasons for such acquisitions have been shifting. Generally, uncertainty in reimbursement and healthcare reform in Europe and the U.S. has changed the acquisitions landscape. Instead of looking to buy technology, the economic situation has resulted in companies buying partners outside of their home country and also to increase their market share and produce revenue growth. Kalorama's Mergers and Acquisitions in the IVD Market follows the M&A marketplace, recording over 120 acquisitions in both the 2015-2016 and 2014-2013 periods, some 250 purchases in total.
Mergers and Acquisitions in the IVD Market can be found at Kalorama Information: http://www.kaloramainformation.com/Mergers-Acquisitions-IVD-10563047/.
"The revenue growth potential of small niche players is greater than that of the established companies," said Bruce Carlson, Publisher of Kalorama Information. "Therefore a sure strategy for growth lies in the incorporation of niche players into the fold of an established company."
A perfect example of this phenomenon is Roche Diagnostics' strategic acquisition strategy that has helped the company to dominate the industry, with 2016 revenues twice that of its nearest competitors. Roche's growth is linked to its molecular (PCR) IP, chemistries, immunoassays, HPV testing and diabetes franchise. The company has reinforced its molecular and sequencing offerings, and has branched out into prenatal analysis, genomics and cfDNA for cancer testing.
Roche's acquisitions include the December 2015 purchase of Kapa Biosystems, a provider of genomic tools in the life sciences sector that employs proprietary technologies to optimize enzymes for next-generation sequencing (NGS), as well as polymerase chain reaction (PCR) and real-time PCR applications; the August 2015 acquisition of GeneWEAVE, a privately held company focused on innovative clinical microbiology diagnostics solutions, to strengthen Roche's offerings in microbiology diagnostics; and the December 2014 acquisition of Ariosa Diagnostics to enter the non-invasive prenatal test (NIPT) and cell-free DNA testing services markets; among other acquisitions.
Roche is of course not alone among top-tier IVD companies in making purchases. Siemens, Danaher, Abbott, Thermo Fisher Scientific, Beckman Coulter, and Becton Dickinson (BD) represent some of the other leading companies active in the M&A marketplace.
With this high level of activity, the IVD industry has shown itself to be extremely dynamic. And these many transactions may represent only a small portion of what is really happening. Kalorama believes that there are many more deals still pending. Some will follow the more traditional route and allow larger companies to acquire new technologies, but there is also a distinct move for globalization of IVD knowledge, a movement into emerging country markets.
The industry goal remains to build better tests and stronger companies. The future of the business lies in the development of more sensitive, faster, user-friendly, IT-capable devices for a host of new protein and molecular markers. No company, big or small, owns all of the technology needed to develop these new tests and systems, so many will continue to get the pieces they do not have via mergers and acquisitions.
Mergers and Acquisitions in the IVD Market discusses many of the recent transactions in detail, including:
- LabCorp's purchase of Sequenom, a major player in the field of NIPT for reproductive health
- Danaher Corporation's purchase of Cepheid, a manufacturer of molecular systems and tests
- Bio-Techne's acquisition of Advanced Cell Diagnostics (ACD), marking Bio-Techne's entry into the genomics market
- Luminex's acquisition of Nanosphere and the Verigene platform
Kalorama's report, Mergers and Acquisitions in the IVD Market, discusses some 250 acquisitions, with over 120 acquisitions in both the 2015-2016 and 2014-2013 periods. The information presented in this report is the result of data gathered from government reports, company product literature and other corporate brochures and documents, as well as information found in the scientific and trade press.
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.
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SOURCE Kalorama Information
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