Date: Sep 03, 2013 Source: Company Data (
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With the acquisition of BioFire, bioMérieux consolidates its position as a major player in infectious disease diagnostics
With a complete range of technologies for clinical microbiology diagnostics,
bioMérieux reinforces its leadership in microbiology FilmArray® technology for a syndromic approach to infectious diseases enhances bioMérieux's offer in high medical - value tests
Marcy l'Etoile, France, September 3 , 2013 - bioMérieux, a world leader in the field of in vitro diagnostics, announces that it has entered into an agreement to acquire BioFire Diagnostics Inc . , a privately held U.S. - based company specialized in molecular biology. BioFire invented, manufactur es and commercializes its multiplex PCR FilmArray ® system, a simple and rapid molecular biology solution dedicated to the diagnosis of infectious diseases. Thanks to its syndromic approach to the diagnosis of these diseases, FilmArray ® contributes to impro ving patient care and reducing healthcare spending. By further stimulating sales of this system and expanding its menu, bioMérieux intends to strengthen the C ompany's position as a major player in infectious disease diagnostics , its core strategic focus.
Created over 20 years ago, BioFire has develop ed , produce d and marke te d a number of automated molecular biology systems, in particular LightCycler ® , licensed to Roche Diagnostics. BioFire, which is specialized in PCR * technology, recently developed FilmArr ay ® , a revolutionary system that has introduced a new standard in molecular diagnostics: a syndromic approach to infectious diseases. This new medical approach is based on analyzing a syndrome ( i.e. a set of symptoms) and, with a single reagent, identifyin g the disease - causing organisms responsible for this syndrome, whether they are viruses or bacteria. FilmArray ® is a closed system that integrates all molecular diagnostics steps into a single process: sample preparation, amplification, detection and analy sis of results. With unmatched user - friendliness, the system makes it easier for hospital s to perform the molecular biology tests available on its menu in the hospital laborator y , increasing the efficiency of diagnostics from both a medical and an economic viewpoint. The company's first commercially launched solution is a respiratory panel ** that tests for 20 viruses and bacteria and delivers results in one hour. This respiratory panel is CE - marked and also received FDA clearance for commercialization in th e United States. In addition, the sepsis panel was approved by the FDA at the end of June. O ther panels are currently under development, including a gastrointestinal panel and meningitis panel.
The two companies present powerful strategic synergies. The F ilmArray ® system represents a key asset in the development of bioMérieux's franchise in infectious disease diagnostics, its primary area of expertise, which accounts for 85% of sales in clinical applications. On the basis of ongoing R&D, FilmArray ® should make it possible to detect over 70 disease agents responsible for respiratory, gastrointestinal and blood infections within the next three years . Thus, FilmArray ® is the ideal addition to bioMérieux's differentiated position in molecular biology, which is based on the easyM AG ® extraction system and the ARGENE range in particular. BioFire's solutions will furthermore benefit from the extensive and dynamic bioMérieux commercial network, particularly in North America and Europe. In addition, bioMérieux will co ntribute its capabilities to the automation of reagent production, thereby optimizing manufacturing costs.
A company specialized in molecular biology, BioFire has facilities for research and development, manufacturing and commercialization based in Salt L ake City ( Utah - United States) . With over 5 00 employees, BioFire should generate $ 70 million * in sales in 2013, including $ 40 million * from FilmArray ® , with a current operating loss before non - recurring items of $ 7 million * due to R&D investments ($1 8 mi llion * ) and expenditures to ramp up the commercial launch of FilmArray®.
"The acquisition of BioFire fits perfectly into bioMérieux's s elective strategy for external growth. Following the AES purchase, which strengthened our leadership in industrial appli cations, the purchase of ARGENE , which showed very strong organic growth of 31% at the end of June 2013 , as well as our recently signed partnership with Quanterix in ultrasensitive and multiplex immunoassays , this new acquisition represents a decisive step for our Company. It enables us to reinforce our infectious disease franchise, our main area of specialization. FilmArray ® is the only system that makes it possible to detect disease - causing viruses and bacteria using a single reagent. As such, it eliminat es the borders between different technologies, simplifying the diagnosis of infectious diseases and delivering faster results for better patient care ," said Jean - Luc Belingard, Chairman and C hief Executive Officer of bioMérieux. "On all our markets, we now have a complete portfolio of particularly innovative technologies with two key benefits: enhanced medical value of diagnostics and optimized workflows in medical laboratories. The Salt Lake City BioFire's site will become our hub for our expansion in mole cular biology. We are especially pleased to welcome the talented employees of BioFire, who will work in close collaboration with bioMérieux teams at our Grenoble and Verniolle sites."
"We could not have found a better shareholder than bioMérieux, world lea der in clinical and industrial microbiology. This is an exciting next step in the evolution of BioFire, and it will allow us to achieve our mission of helping to make the world a healthier and safer place and to continue to support our biodefense customers in the United States Department of Defense and allied forces, " said Kirk Ririe, Chief Executive Officer and Founder of BioFire. " bioMérieux's commercial network will further boost sales of our flagship product, FilmArray ® . In addition, the C ompany's uniqu e know - how in the field of infectious diseases will contribute to the development of new panels, creating very attractive prospects for the future."
Financial information
Under the terms of the agreement, bioMérieux will acquire 100% ownership of BioFire . The transaction will include a $450 million acquisition price and the company's net financial debt . Completion of this acquisition remains subject to usual closing conditions, in particular certain regulatory approvals . The deal is expected to close by th e end of the fiscal year or in early 2014 and consequently will not have a significant impact on sales and current operating income before non - recurring items in 2013. Acquisition costs will amount to €6 million to be recorded under non - recurring items. Th is acquisition will be funded through indebtedness. In July 2013, the Company obtained an additional line of credit. Its loan facilities now total €500 million with maturity date s of July 2014 (€150 million) and March 2017 (€350 million) .
In 2014, revenu e recognized from BioFire should increase the Group's sales by about $80 million on a full - year basis . The rapid development of BioFire will subsequently act as a key growth driver for the Group (increase of 100 to 200 basis points in bioMérieux's organic growth over the 2015 - 2017 period). In light of an ambitious plan to stimulate the development of this new line, the acquisition is expected to have a dilutive effect on current operating income before non - recurring items for the next two years (in 2014 a nd 2015).
In addition, bioMérieux intends to review, with its partner Biocartis, its role in their joint project, Apollo.
INVESTOR CALENDAR
The Company will hold a meeting on September 4, 2013 in Paris ( at 3 : 30 p.m. French t ime) and a web conference the sa me day ( at 6 : 30 p.m. French time).
The above forward - looking statements are based, entirely or partially, on assessments or judgments that may change or be modified, due to uncer tainties and risks related to the Company's economic, financial, regulatory an d competitive environment, notably those described in the 201 2 Registration Document. Accordingly, the Company cannot give any assurance nor make any representation as to whether the objec tives will be met. The Company does not undertake to update or othe rwise revise any forecasts or objectives presented herein, except in compliance with the disclosure obligations applicable to companies whose shares are listed on a stock exchange.
ABOUT BIOMERIEUX
Pioneering Diagnostics
A world leader in the field of in v itro diagnostics for 50 years, bioMérieux is present in more than 150 countries through 41 subsidiaries and a large network of distributors. In 2012, revenues reached €1,570 million with 87% of sales outside of France.
bioMérieux provides diagnostic solu tions (reagents, instruments, software) which determine the source of disease and contamination to improve patient health and ensure consumer safety. Its products are used for diagnosing infectious diseases and providing high medical value results for canc er screening and monitoring and cardiovascular emergencies. They are also used for detecting microorganisms in agri - food, pharmaceutical and cosmetic products.
bioMérieux is listed on the NYSE Euronext Paris market (Symbol: BIM ISIN: FR0010096479). Corp orate website: www.biomerieux.com. Investor website: www.biomerieux - finance.com. BioFire website: www.biofiredx.com
CONTACTS
Investor Relations
bioMérieux
Isabelle Tongio
Tel:+ 33 4 78 87 22 37
investor.relations@biomerieux.com
