Thermo Fisher Scientific to Acquire Point-of-Care Molecular Diagnostics Provider Mesa Biotech

Rhea-AI Summary

Thermo Fisher Scientific (NYSE: TMO) announced its acquisition of Mesa Biotech, a molecular diagnostic company, for approximately $450 million in cash, with the potential for an additional $100 million based on performance milestones. Mesa Biotech specializes in rapid PCR-based testing for infectious diseases, including COVID-19 and influenza, with revenues of about $45 million in 2020. The deal, aimed at enhancing Thermo Fisher's diagnostics portfolio, is expected to close in Q1 2021, pending regulatory approvals.

Positive

• Acquisition enhances Thermo Fisher's diagnostics portfolio, targeting rapid PCR testing.
• Mesa Biotech's technology caters to increasing demand for COVID-19 testing.
• Potential for revenue growth from Mesa's established products and market presence.

Negative

• Acquisition cost may impose financial strain despite expected synergies.
• Integration of Mesa Biotech may present operational challenges.

WALTHAM, Mass., Jan. 19, 2021 /PRNewswire/ -- Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today announced it has entered into a definitive agreement to acquire Mesa Biotech, Inc., a privately held molecular diagnostic company, for approximately $450 million in cash. Under the terms of the agreement, Thermo Fisher will pay up to an additional $100 million in cash upon the completion of certain milestones following the close of the transaction.

Mesa Biotech has developed and commercialized a PCR-based rapid point-of-care testing platform available for detecting infectious diseases including SARS-CoV-2, Influenza A and B, respiratory syncytial virus (RSV) and Strep A. Mesa Biotech's patented technology expands the availability of gold standard nucleic acid PCR amplification to point-of-care diagnostics. The company is based in San Diego, California and has approximately 500 employees and revenues in 2020 of approximately $45 million.

Mesa Biotech's Accula™ Flu A/Flu B, RSV and Strep A tests have obtained 510(k) clearance and Clinical Laboratory Improvements Amendments (CLIA) waivers from the U.S. Food and Drug Administration (FDA). Additionally, the Accula System has received Emergency Use Authorization (EUA) from the FDA for SARS-CoV-2 in vitro diagnostic testing and is now available for use in patient care settings, providing results within 30 minutes, with higher accuracy than other rapid tests on the market.

"Mesa Biotech's innovative platform will enable us to accelerate the availability of reliable and accurate advanced molecular diagnostics at the point of care.  Since the start of the pandemic, Thermo Fisher has acted quickly to provide support to the scientists and healthcare professionals at the frontlines of combating COVID-19," said Mark Stevenson, executive vice president and chief operating officer of Thermo Fisher Scientific. "The addition of Mesa Biotech's easy-to-use, rapid PCR-based test is highly complementary to our existing offering and will further help us meet the continuing demand for COVID-related testing while we work to rapidly scale and develop point-of care tests for other infectious diseases in the future."

Ingo Chakravarty, president and chief executive officer of Mesa Biotech said, "I am extremely proud of the remarkable accomplishments Mesa Biotech has achieved to date and excited about the prospects of becoming a part of Thermo Fisher. Mesa's innovative rapid PCR platform technology, combining PCR accuracy with mobility and test results in 30 minutes, has already played a meaningful role in the collective efforts combating the pandemic. Thermo Fisher's scale, innovation and global reach will allow us to more significantly amplify the impact our technology will have on human health, during the pandemic, and far beyond."

The transaction is expected to be completed in the first quarter of 2021, subject to customary closing conditions, including regulatory approval. Upon completion, the business will become part of Thermo Fisher's Life Sciences Solutions Segment. 

About Thermo Fisher Scientific 
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue exceeding $25 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, improving patient diagnostics and therapies or increasing productivity in their laboratories, we are here to support them. Our global team of more than 75,000 colleagues delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services and Patheon. For more information, please visit www.thermofisher.com.

Forward-Looking Statements

This communication contains forward-looking statements that involve a number of risks and uncertainties, including statements about the timing of completion of the transaction. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties relating to the proposed transaction not being timely completed, if completed at all; regulatory approval required for the transaction not being timely obtained, if obtained at all, or being obtained subject to conditions; and the additional factors set forth in Thermo Fisher's most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, which are on file with the Securities and Exchange Commission and available in the "Investors" section of its Website under the heading "SEC Filings." While Thermo Fisher may elect to update forward-looking statements at some point in the future, Thermo Fisher specifically disclaims any obligation to do so, even if Thermo Fisher's estimates change and, therefore, you should not rely on these forward-looking statements as representing Thermo Fisher's views as of any date subsequent to the date of this communication.

Media Contact Information:
Thermo Fisher
Ron O'Brien
Phone: 781-622-1242
E-mail: ron.obrien@thermofisher.com 

Investor Contact Information:
Thermo Fisher 
Ken Apicerno
Phone: 781-622-1294
E-mail: ken.apicerno@thermofisher.com 

 

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SOURCE Thermo Fisher Scientific

FAQ

What is the value of the acquisition of Mesa Biotech by Thermo Fisher?

The acquisition is valued at approximately $450 million, with an additional potential payment of $100 million based on performance milestones.

What technologies does Mesa Biotech provide to Thermo Fisher?

Mesa Biotech offers a rapid PCR-based testing platform for infectious diseases, including COVID-19, with results available in 30 minutes.

When is the acquisition of Mesa Biotech by Thermo Fisher expected to close?

The transaction is expected to be completed in the first quarter of 2021, subject to regulatory approvals.

How will the acquisition impact Thermo Fisher's stock (TMO)?

The acquisition may enhance Thermo Fisher's market position in diagnostics, potentially driving revenue growth, which could positively influence TMO's stock performance.

What is the revenue of Mesa Biotech prior to the acquisition?

Mesa Biotech reported revenues of approximately $45 million in 2020.