USA — Thermo Fisher Scientific Inc has announced that it would acquire Binding Site Group from Nordic Capital in an all-cash transaction valued at 2.25 billion pounds (US$2.6 billion), bolstering its specialty diagnostics business.

Nordic Capital has been the majority owner of Binding Site since 2011 when it completed the acquisition together with Five Arrows.

The transaction, which is expected to be completed in the first half of 2023, is subject to customary closing conditions, including regulatory approvals.

Binding Site’s test detects and monitors multiple myeloma, a cancer of a type of white blood cell, and is expected to generate more than US$220 million in revenue by 2022, according to Thermo Fisher.

Thermo Fisher Scientific’s specialty diagnostics portfolio includes equipment for testing allergy and autoimmune diseases as well as monitoring transplant-related biomarkers.

The projected amount captures a good chunk of the global hematology diagnostics market, which is anticipated to reach approximately US$ 5.6 billion by 2026 up from US$ 3.5 billion valuation in 2017.

The expansion of hematology consumables segment is likely to fuel the growth of global hematology diagnostics from 2018 to 2026 and is mainly attributed to the increase in prevalence of blood disorders.

The hematology diagnostics market is growing. Abbott Laboratories, Sysmex Corporation, Roche Ltd., and Beckman Coulter, Inc. are key market players in the global hematology diagnostics market.

In recent years, various multinational manufacturers such as Abbott Laboratories, Sysmex Corporation, and Roche Ltd have made significant investments in the global hematology diagnostics market.

The hematology diagnostics market is being driven by significant demand for laboratory automation and consolidation in order to improve precision and efficiency, as well as technological advancements that lead to ease of use.

For example, Danaher (Beckman Coulter, Inc.) received CE Mark in April 2018 for its DxH 520 hematology analyzer, which is intended to assist physician office laboratories.

Another example is Roche’s announcement in January 2017 of the Cobas m 511 integrated hematology analyzer, a new hematology testing solution.

For the nine months ended Oct. 1, the specialty diagnostics business generated US$3.65 billion in revenue, accounting for about 10% of Thermo Fisher’s total revenue during the period.

Upon completion, The Binding Site will become part of Thermo Fisher’s Specialty Diagnostics segment and is expected to be accretive to adjusted earnings per share by US$0.07 for the first full year of ownership

Thermo Fisher bought recombinant proteins maker PeproTech earlier this year for about US$1.85 billion in cash, after spending about US$17.4 billion last year to buy clinical research services provider PPD.

Cobas m 511 employs a novel approach based on patented Bloodhound technology for printing, staining, and imaging

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