DiaSorin will buy Quest Diagnostics’ Focus Diagnostics immunodiagnostic and molecular diagnostic products business for $300 million cash, the companies said today.
The deal is designed to expand DiaSorin’s presence in the growing infectious disease molecular testing market by adding to the buyer’s offerings a new set of molecular products cleared for distribution in the US and Europe.
DiaSorin reasons that it can leverage its global commercial infrastructure to expand the Focus business outside the U.S. while retaining Focus’ current U.S. customer base, which it said consisted mostly of large hospitals. DiaSorin added that it aims to speed up penetration of its current Immunoassay LIAISON® platform within Focus’ U.S. market.
The U.S. is part of DiaSorin’s “North America” reporting segment, which accounted for 25.6% or €127.8 million ($144.6 million) of the company’s €499.2 million ($564.8 million) in revenues last year. Europe and Africa combined made up nearly half (47.1%) of revenues, followed by Asia Pacific (19.5%) and Central and South America (7.8%).
The deal covers all of Focus’ tangible and intangible assets to develop, manufacture, and distribute its molecular diagnostic products and traditional immunoassay ELISA products—including intellectual property, contracts and customer list.
Focus' product lines include the Simplexa™ molecular product line, HerpeSelect® HSV serology, and the line of DxSelect™ IFA and ELISA assays.
"The combination of DiaSorin and Focus products will create a unique portfolio of specialty products, especially in the clinical area of infectious disease, which will continue to strengthen the leadership of DiaSorin in this segment that today already represents over 50% of DiaSorin revenues,” DiaSorin CEO Carlo Rosa said in a statement.
DiaSorin discloses its revenue breakdowns by types of test—though not disease specialty—as well as geographic region. Last year, CLIA tests accounted for 74% or €371.4 million ($420.1 million) in revenues, followed by ELISA tests (12%), instrument sales and other revenues (11.5%), RIA tests (1.3%), and molecular, which accounted for only 0.8% of revenues.
DiaSorin said it “expects to continue” manufacturing Focus products from its base facility in Cypress, CA, where approximately 180 employees hold manufacturing, research and development, sales and marketing, and administration positions.
Not included in the deal is Quest’s diagnostic information service laboratories, which operate under the Focus Diagnostics brand. These labs—which primarily serve hospital and biopharmaceutical companies—will continue to be based in San Juan Capistrano, CA, as part of Quest, the companies said.
DiaSorin will use a newly-created U.S. affiliate to carry out its acquisition, which is expected to be completed in the second quarter of this year subject to customary closing conditions.