The healthcare sector has been witnessing several acquisitions
since the beginning of 2014.
) acquired Pivot Medical, Inc. in March while
ThermoFisher Scientific, Inc.
) completed the buyout of Life Technologies Corporation in
February. Major drug retailer
) will soon be acquired by AB Acquisitions LLC., privately held
and controlled by Cerberus Capital Management, L.P.
In the same vein,
Bio-Rad Laboratories, Inc.
) also recently acquired GnuBIO, Inc. Financial details of the
transaction remain undisclosed.
GnuBIO is a privately-held life sciences company that has
developed a fast and fully integrated droplet-based DNA
sequencing platform. The platform combines all the functions of
DNA sequencing into a single, integrated workflow for medical
diagnostics and research markets and delivers results within
hours. Thus, this time-and-cost effective technology has clearly
enabled GnuBIO to develop a competitive advantage over other
Bio-Rad reports revenues under two major segments -- Life
Science and Clinical Diagnostics. Life Science accounted for
33.3% of Bio-Rad's total revenues in 2013. Growth in this segment
was driven by sales from the newly acquired AbD Serotec, droplet
digital PCR and cell biology product lines.
It is worth noting in this regard that Bio-Rad had acquired
AbD Serotec, a division of MorphoSys AG in Jan 2013, in order to
have access to AbD Serotec's comprehensive catalog of antibodies
thereby boosting its portfolio.The integration of GnuBio's
innovative DNA sequencing technology with the Life Science
segment should strengthen Bio-Rad's foothold in the area of
droplet digital PCR.
In order to expand its offerings under the droplet digital PCR
system, Bio-Rad had launched PrimePCR assays in Jul 2013. These
innovatively predesigned assays for mutation detection and copy
number variation provide single-copy PCR resolution without a
The Clinical Diagnostics segment contributed 66.2% of total
revenue in 2013. Growth in this segment came on the back of
higher revenues from quality controls, diabetes and the BioPlex
2200 system. The DNA sequencing technology of GnuBIO seems
to be appropriate for the clinical diagnostics sequencing
Bio-Rad has a history of successfully integrating the business
and assets of the acquired firms ( the company acquired five
firms since 2011) with its own business segments. However, we
would like to remain on the sidelines and wait until more
visibility is obtained on how well Bio-Rad capitalizes on the new
Currently, Bio-Rad carries a Zacks Rank #4 (Sell).
BIO-RAD LABS -A (BIO): Free Stock Analysis
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