Bio-Techne shells out $250M for Advanced Cell Diagnostics

ACD reagent kit
RNAscope 2.5 HD Reagent Kit--Courtesy of Advanced Cell Diagnostics

Bio-Techne, which makes proteins for biomedical and clinical researchers, will acquire Advanced Cell Diagnostics for $250 million in cash, with a potential $75 million in milestones. The move marks Bio-Techne’s ($TECH) entry into genomics.

“ACD's technology serves both research and diagnostic markets, expanding Bio-Techne's presence in the clinical lab setting,” said Bio-Techne CEO Charles Kummeth, in a statement. “With broader adoption of the technology in the diagnostic arena, it has the potential to revolutionize the choice of reagents in diagnostic practices, such as oncology, infectious diseases and others.”

Advanced Cell Diagnostics markets products based on its RNAscope technology, which is an RNA in-situ hybridization platform. It allows the detection of single RNA molecules in single cells. Information at this level is “far more informative,” than the analysis of many cells achieved in traditional methods, Bio-Techne said.

Event

Join the world's top medtech executives virtually for the leading event in medtech — The Virtual MedTech Conference by AdvaMed

Expect the same high-quality education, world-class speakers and valuable business development in a virtual format. Experience more of the conference with on demand content and partnering, as well as livestreamed sessions.

In addition to its product offerings--which include control slides and probes for RNAscope, software and kits and reagents for manual and automated assays--Advanced Cell Diagnostics is working on diagnostic tests for cancer management.

Based in Newark, CA, ACD has more than 100 employees and offices in Italy, China and Japan. It reeled in $25 million in sales for the last year. The deal is expected to close around August 1 and to be dilutive to Bio-Techne’s earnings for fiscal year 2017, after which it will be accretive to earnings, according to the statement.

- read the statement

Related Articles:
Veracyte brings in $45M to spur growth for molecular diagnostics business
Abbott inks $5.8B deal for Alere to expand in point-of-care diagnostics
Roche snags diagnostics outfit IQuum in $450M deal

Suggested Articles

Novartis is forging ahead with the development of spartalizumab in "many, many other indications" despite the setback.

Chi-Med has detailed plans to seek approval from the FDA later this year in part on the strength of data from Chinese phase 3 trial.

Takeda tapped Roche’s Foundation Medicine to develop tissue- and blood-based companion diagnostic tests for its portfolio of lung cancer therapies.