Luminex Acquires Molecular Diagnostic Company
The purchase expands the Luminex infectious disease business, which consists of its xTAG Respiratory Viral Panel products. Among EraGen’s products is a FDA-approved herpes simplex virus IVD test. The companies had had a distribution and licensing partnership for the use of EraGen’s MultiCode-PLx panel for respiratory viruses on the Luminex 100 system. EraGen will provide Luminex with additional resources to grow its diagnostic business, for which assay revenue last year totaled $32.2 million.
Austin, TX 6/21/11; Austin, TX 6/27/11—Luminex has acquired EraGen Biosciences, which provides molecular diagnostic testing technologies for infectious disease and genetic applications, for $34 million in cash. EraGen Biosciences’ MultiCode platform is designed for both real-time PCR and multiplex PCR-based applications and includes FDA-cleared products, analyte-specific reagents and research use–only products. Based in Madison, Wisconsin, the company had 2010 product sales of $8.0 million. “The acquisition of EraGen builds on the strategic investments we have made and provides additional resources for sales, support and assay development, strengthening our leadership position and expanding our footprint within the molecular diagnostic market,” stated Luminex President and CEO Patrick J. Balthrop. Luminex expects the acquisition to be neutral to earnings in 2011 on a non-GAAP basis. EraGen’s operations will remain in Wisconsin. The transaction is expected to close in second quarter and is estimated to contribute $5–$7 million to Luminex’s 2011 revenues.
