B. Braun Medical is jumping into an alliance with a German startup so both can pursue customers in the U.S. gene sequencing and diagnostics market.
B. Braun's U.S. division sealed the deal with CeGaT, a German diagnostics startup known for producing cutting-edge diagnostic panels that help to simultaneously sequence all genes relating to a given disease. Plans call for basing the new operation, dubbed B. Braun CeGaT, at B. Braun's U.S. corporate headquarters in Bethlehem, PA, and the business will market diagnostic panels and molecular diagnostic services to U.S. customers.
The choice of location ended up being a creative use of the property, considering B. Braun will leave the space at some point for a new U.S. headquarters in Center Valley, The Morning Call reported. B. Braun has also owned 20% of CeGaT since 2012, according to the story.
Neither side is disclosing the financial specifics. But B. Braun, known for producing med tech devices and equipment for infusion therapy and pain management, gains the ability to offer molecular diagnostics tech to its U.S. customers on a wide scale. CeGaT scores, too, hitting the U.S. market through a major distributor after significant effort developing its technology and reputation in Europe following its 2009 launch.
"After many years of experience in the design, sequencing and analysis of diagnostic panels in Germany, we can offer a real value and treatment decision support to clinicians in the U.S.," Dirk Biskup, founder and CEO of CeGaT, said in a statement.
For B. Braun, molecular diagnostics offers an area of growth during a time when it has faced challenges in other business areas. In May, for example, Braun extended a recall of saline solution after the FDA found particulate matter in some samples. B. Braun also dived into a patent dustup a few years back against CareFusion ($CFN) regarding both company's infusion pumps.
- read the release
- here's The Morning Call's take