Meridian Signs Definitive Agreement to Acquire Urea Breath Test for H. pylori from Otsuka America Pharmaceutical, Inc.

Rhea-AI Summary

Meridian Bioscience announced the acquisition of North America's BreathTek® business from Otsuka America Pharmaceutical for $20 million in cash, expected to close in the fiscal fourth quarter. This acquisition will provide Meridian with customer relationships for the urea breath test used to detect Helicobacter pylori, adding over $20 million to annual revenue. The CEO stated that this move leverages pandemic-generated cash to enhance Meridian's diagnostics segment, contributing to immediate earnings and cash growth.

Positive

• Acquisition expected to add over $20 million in annual revenue.
• Transaction will enhance Meridian's position in gastrointestinal diagnostics.
• Expected to be accretive to earnings and cash immediately.

Negative

• Risks exist regarding the successful integration of businesses.
• Potential challenges in retaining key personnel and customers post-acquisition.
• Synergies from the transaction may take longer to realize than anticipated.

CINCINNATI, July 23, 2021 (GLOBE NEWSWIRE) -- Meridian Bioscience, Inc., a leading global provider of diagnostic testing solutions and life science raw materials, announced today that it signed a definitive agreement to acquire the North American BreathTek^® business from Otsuka America Pharmaceutical, Inc. for $20 million in cash. The transaction is expected to close in Meridian’s fiscal fourth quarter.

With this acquisition, Meridian will assume the customer relationships in North America to supply BreathTek^®, a urea breath test for the detection of Helicobacter pylori. The acquisition is expected to add more than $20 million of annual revenue, strengthening Meridian’s position as a leading provider of gastrointestinal diagnostic solutions, and is expected to be accretive to earnings and cash immediately.

Jack Kenny, Chief Executive Officer, commented, “This is another example of our strategic use of cash generated during the pandemic to further position the diagnostics segment for sustainable growth. We look forward to supporting Otsuka’s customers with the gastrointestinal expertise and world class customer service Meridian is known for.”

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this communication regarding the proposed acquisition of assets from Otsuka as described above by Meridian, including any statements regarding the synergies, benefits and opportunities of the transaction, future opportunities for the combined company and products, future financial performance and any other statements regarding Meridian’s future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts are “forward-looking” statements made within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “estimate,” “probable,” “project,” “forecasts,” “predict,” “outlook,” “aim,” “will,” “could,” “should,” “would,” “potential,” “may,” “might,” “anticipate,” “likely,” “plan,” “positioned,” “strategy,” and similar expressions, and the negative thereof, are intended to identify forward-looking statements.

All forward-looking information is subject to numerous risks and uncertainties, many of which are beyond the control of Meridian, that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the diversion of management time on transaction-related issues; ability to successfully integrate the businesses; risk that the transaction and its announcement could have an adverse effect on the parties’ ability to retain customers and retain and hire key personnel; the risk that any potential synergies from the transaction may not be fully realized or may take longer to realize than expected; and risks inherent in funding, developing and obtaining regulatory approvals of new, commercially-viable and competitive products. In addition, forward-looking statements may also be adversely affected by general market factors, competitive product development, product availability, federal and state regulations and legislation, the regulatory process for new products and indications, manufacturing issues that may arise, patent positions and litigation, among other factors. The forward-looking statements contained in this communication may become outdated over time. Meridian does not assume any responsibility for updating any forward-looking statements. Additional information concerning these and other factors can be found in Meridian’s filings with the SEC and available through the SEC’s Electronic Data Gathering and Analysis Retrieval system at www.sec.gov, including Meridian’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The foregoing list of important factors is not exclusive. Meridian assumes no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, except as may be required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

About Meridian Bioscience, Inc.
Meridian is a fully integrated life science company that develops, manufactures, markets, and distributes a broad range of innovative diagnostic products. We are dedicated to developing and delivering better solutions that give answers with speed, accuracy, and simplicity that are redefining the possibilities of life from discovery to diagnosis. Through discovery and development, we provide critical life science raw materials used in immunological and molecular tests for human, animal, plant, and environmental applications. Through diagnosis, we provide diagnostic solutions in areas including gastrointestinal and upper respiratory infections and blood lead level testing. We build relationships and provide solutions to hospitals, reference laboratories, research centers, veterinary testing centers, physician offices, diagnostics manufacturers, and biotech companies in more than 70 countries around the world.

Meridian’s shares are traded on the NASDAQ Global Select Market, symbol VIVO. Meridian’s website address is www.meridianbioscience.com.

Contact:
Charlie Wood
Vice President – Investor Relations
Meridian Bioscience, Inc.
Phone: +1 513.271.3700
Email: mbi@meridianbioscience.com

FAQ

What is the purpose of Meridian's acquisition of BreathTek®?

The acquisition aims to enhance Meridian's gastrointestinal diagnostic solutions and expand its customer base in North America.

How much did Meridian pay for the BreathTek® business?

Meridian paid $20 million in cash for the BreathTek® business.

When is the acquisition of BreathTek® expected to close?

The acquisition is expected to close in Meridian's fiscal fourth quarter.

What impact will the BreathTek® acquisition have on Meridian's revenue?

The acquisition is expected to add over $20 million to Meridian's annual revenue.

How does the BreathTek® acquisition affect Meridian's financial position?

The acquisition is anticipated to be accretive to Meridian's earnings and cash immediately.