BioMérieux to Buy BioFire for $450 Million
The acquisition bolsters bioMérieux’s infectious disease diagnostics offerings, which account for 85% of its clinical sales; raises its molecular diagnostics business from 5% to 8% of sales; and expands its US business. BioFire is expected to add 100–200 basis points to annual organic sales growth in 2015–2017. According to a bioMérieux presentation, biosurveillance and other markets account for 13% of BioFire’s sales, royalties account for 16%, and contracts and grants represent 14%. Roche’s LightCycler products are based on technology licensed from BioFire. The FDA-approved FilmArray respiratory panel tests for 20 viruses and bacteria in one hour. The company also offers a sepsis panel. BioMérieux stated that FilmArray should be able to detect 70 disease agents within the next three years.
Marcy l’Etoile, France 9/3/13—IVD firm bioMérieux has agreed to acquire PCR provider BioFire Diagnostics for $450 million and BioFire’s net financial debt. BioFire manufactures the multiplex PCR FilmArray System for the diagnosis of infectious disease. Based in Utah with 500 employees, BioFire is estimated to have 2013 revenues of $70 million, including $40 million in FilmArray sales, and an operating loss before non-recurring items of $7 million. Commenting on the acquisition, bioMérieux Chairman and CEO Jean-Luc Belingard said, “It enables us to reinforce our infectious disease franchise, our main area of specialization. FilmArray is the only system that makes it possible to detect disease-causing viruses and bacteria using a single reagent.” BioMérieux stated it will continue to support BioFire’s biodefense customers. The acquisition is expected to add $80 million to bioMérieux’s 2014 revenues and have a dilutive effect on current operating income before non-recurring items in both 2014 and 2015. The deal should close in early 2014 at the latest.
