PerkinElmer ($PKI) is expanding its international oncology molecular diagnostics offerings through a deal to distribute tests made by Transgenomic.
Neither side is disclosing financial details. But the gist is this: PerkinElmer will handle the international marketing, distribution and servicing for a number of Transgenomic oncology molecular diagnostic tests. Among them: the CRC RAScan, which helps detect specific genetic mutations at extremely low levels that would be useful to know for metastatic colorectal cancer-related EGFR inhibitor therapies. The technology includes all the bells and whistles such as DNA extraction and higher performance microfluidics instrumentation.
PerkinElmer, a Massachusetts maker of medical instruments and other equipment for clinical diagnostics and biomedical research, gains nonexclusive rights in the deal. The launch starts in Europe and the collaboration itself kicks in on Jan. 1, 2014.
Two words matter here: molecular diagnostics. The technology is becoming more commonplace for oncology in particular. PerkinElmer wants to capture more of that market and sees Nebraska-based Transgenomic as a crucial way to get there.
"Transgenomic's platform, technology and research collaborations place them at the forefront of innovation both for their marketed tests as well as their robust product pipeline," Steve Wallace, PerkinElmer's vice president of molecular diagnostics, said in a statement. Paul Kinnon, Transgenomic's newly minted president and CEO, said in a statement that PerkinElmer is an "ideal commercial collaborator for our oncology genetic testing portfolio outside of the U.S."
With $2.1 billion in revenue in 2012 and 7,500 employees targeting a customer base in 150 countries, PerkinElmer has serious reach, and Transgenomic could use that wide network and commercial reach to help grow its revenue. The company booked $7.3 million in revenue during its 2013 second quarter, down from $9.1 million over the same period in 2012, as it dealt with a test backlog due to a software failure in early 2012. Net losses hit nearly $3 million for the quarter, versus a $600,000 loss in the 2012 second quarter. (Third quarter results are due Nov. 6, 2013.) Transgenomic focuses on molecular diagnostics, contract research for the drug industry and the development of diagnostic tools.
PerkinElmer reported $524.3 million in revenue during the 2013 third quarter, up from $509.6 million in the 2012 third quarter. Net income grew to $40.2 million, up from just under $30 million during the same period a year ago.
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