bioMérieux finalizes acquisition of the U.S. company BioFire, specialized in molecular biology16 January, 2014
bioMérieux, a world leader in the field of in vitro diagnostics, announces that it has finalized its acquisition of 100% ownership in BioFire Diagnostics Inc., a privately held U.S.-based company specialized in molecular biology. The agreement to purchase BioFire was first announced on September 4.
Created over 20 years ago, BioFire has developed, produced and marketed a number of automated PCR molecular biology systems. More recently, BioFire developed FilmArray®, a unique CE-marked and FDA-cleared multiplex PCR system that integrates all molecular diagnostics steps - sample preparation, amplification, detection and analysis - into one system. FilmArray® which has introduced the syndromic approach to infectious disease molecular diagnostics creates a new standard in this market with its essential combination of speed, accuracy, ease-of-use and comprehensiveness in one single assay. This allows hospitals to perform the molecular biology tests available on its menu in the hospital laboratory, thereby enabling faster and more efficient medical decision making. FilmArray® as of today has two CE-marked and FDA-cleared panels - the Respiratory Panel and the Blood Culture Identification Panel.
The two companies present strong strategic synergies, especially in marketing, manufacturing and innovation. FilmArray® is a key differentiating asset in the development of bioMérieux’s franchise in infectious disease diagnostics, its primary area of expertise. FilmArray® will benefit from the global and dynamic bioMérieux commercial network. Additionally, bioMérieux will contribute its capabilities to the automation of reagent production, thereby optimizing manufacturing costs. The BioFire’s site in Salt Lake City (Utah - United States) will become bioMérieux’s hub for its expansion in molecular biology and R&D teams from the two companies will contribute to the development of new panels, creating very attractive prospects for the future.
Jean-Luc Belingard, Chairman and Chief Executive Officer of bioMérieux, commented: “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.”
Kirk Ririe, Chief Executive Officer and Founder of BioFire, said: “We are pleased to see both companies join forces to enrich FilmArray®’s menu and to reach new customers with a global sales and marketing force. The legacy of what we have built at BioFire is the result of the contributions of so many talented individuals and we are tremendously excited about our prospects under the stewardship of bioMérieux, a company similarly committed to improving patient care worldwide.”
bioMérieux and BioFire will start integration process, focusing on leveraging the positive synergies between both companies, to drive FilmArray® sales and menu expansion. In order to meet the expectations of BioFire’s biodefense customers in the United States, a wholly owned subsidiary dedicated to the biodefense activities will be established. 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 $450 million acquisition price and the company’s net financial debt (around $35 million), representing a total of €355 million. Acquisition costs will amount to €6 million to be recorded under non-recurring items (about €2 million in 2013 and €4 million in 2014). This acquisition will be essentially funded through bioMérieux’s inaugural €300-million issue of seven-year bonds.
In 2014, revenue recognized from BioFire should increase the Group’s sales by about $80 million. The rapid development of BioFire will subsequently act as a key growth driver for the Group (increase of 100 to 200 basis points in bioMérieux’s organic sales growth over the 2015 - 2017 period). In light of an ambitious plan to stimulate the development of this new line, the acquisition is expected to have a dilutive effect on current operating income before non-recurring items in 2014 and 2015.The above forward-looking statements are based, entirely or partially, on assessments or judgments that may change or be modified, due to uncertainties and risks related to the Company's economic, financial, regulatory and competitive environment, notably those described in the 2012 Registration Document. Accordingly, the Company cannot give any assurance nor make any representation as to whether the objectives will be met. The Company does not undertake to update or otherwise revise any forecasts or objectives presented herein, except in compliance with the disclosure obligations applicable to companies whose shares are listed on a stock exchange.