Meridian Bioscience has agreed to acquire Debiopharm Group’s subsidiary GenePOC in a deal valued at around $120m.
Based in Quebec of Canada, GenePOC is involved in the development of diagnostic devices for the prevention and detection of infectious diseases.
Established in 2007, GenePOC supplies molecular diagnostic instruments and assays to its customers. The company employs around 100 people.
GenePOC produces revogene molecular diagnostics platform that provides sample to result testing for single tests, as well as flexible multiplexing capability.
The revogene is an FDA-cleared platform, which currently has three FDA-cleared assays such as C. difficile, Group A Strep and Group B Strep.
Meridian said that it believes revogene is a perfect fit with its stated strategy to offer gastrointestinal disease and core respiratory illness diagnostics solutions for the diverse requirements of complex medical health systems.
Meridian will supply the new platform and technology to its existing customers seeking better workflow and performance than its current Alethia molecular platform can provide.
The multiplexing capability of revogene will also help Meridian to provide its customers with smart panel solutions currently in development and planning.
Meridian Bioscience CEO Jack Kenny said: “GenePOC provides an exciting new state-of-the-art molecular diagnostics platform to our Diagnostics portfolio. This is a critical element of our strategy to re-position our Diagnostics business for sustainable long-term growth.”
As per terms of the deal, Meridian will pay $50m to GenePOC at closing of the deal. Meridian will also pay an additional $20m in its fiscal 2021 based on the achievement of certain technical development milestones.
In addition, the company will make a final payment of up to $50m in fiscal 2023 based on both the sales performance of certain molecular assays and their achievement of minimum profit margin thresholds.
Subject to certain closing conditions, the deal is expected to be completed in the early fourth quarter of this fiscal year.
Debiopharm president Thierry Mauvernay said: “Whenwe integrated GenePOC into Debiopharm, the mainobjective was toquicklybring their instrument and diagnostic tests to market approval. As antibiotic resistance is a major public health issue, it has become urgentto offer patients rapid diagnostic tools to guidetherapies targeting the precise pathogen.”