Diagnostics company bioMerieux has reached an agreement to acquire molecular biology company BioFire Diagnostics for $450 million in a move intended to strengthen the French company’s position in infectious disease diagnostics.
Under the agreement, bioMerieux, which bases its U.S. operations in Durham, will aquire 100 percent of Utah-based BioFire, including BioFire’s net financial debt. The deal is expected to close by the end of the fiscal year or in early 2014, pending regulatory approvals.
BioMerieux is funding the acquisition through debt; In July, bioMerieux obtained an additional line of credit.
BioMerieux described the deal as beneficial for both companies. BioFire gets access to bioMerieux’s commercial network, particularly in Europe and North America as well as its manufacturing capabilities. BioMerieux gets access to BioFire’s new diagnostic technology. BioFire’s Salt Lake City BioFire’s site will become bioMerieux’s hub for expansion in molecular biology.
“It enables us to reinforce our infectious disease franchise, our main area of specialization,” bioMerieux Chairman and CEO Jean-Luc Belingard said in a statement.
BioFire specializes in polymerase chain reaction, or PCR technology, a biochemical technology used in a variety of medical and biological research applications. The company’s first commercially launched product is a respiratory panel that tests for 20 viruses and bacteria and delivers results in one hour. This respiratory panel has the CE mark for sale in Europe and has also received Food and Drug Administration clearance for commercialization in the United States. A panel testing for sepsis received the FDA’s nod in June. Other panels are in development, including a gastrointestinal panel and a meningitis panel.
BioFire’s most recent technology is its FilmArray, a diagnostic system that analyzes a set of systems with a single reagent. The company says its system is simpler, less expensive and more efficient for hospitals.
BioMerieux says that FilmArray should make it possible to detect more than 70 disease agents responsible for respiratory, gastrointestinal and blood infections within the next three years, complementing bioMerieux’s position in molecular biology.
BioFire is projected to generate $70 million in 2013 sales, including $40 million from FilmArray.
