Diagnostic Equipment: Top 5 Largest Deals 2023

August 1, 2023

In the dynamic world of the medical diagnostics market, Q1 2023 witnessed over £8.73B worth of groundbreaking deals.

The medical diagnostics industry plays a vital role in healthcare by developing and manufacturing a diverse range of medical devices, instruments, and technologies utilised in disease detection and diagnosis. This industry is instrumental in enabling early detection, precise diagnosis, and well-informed decision-making.

It encompasses various sectors, including laboratory-based tests, imaging equipment, molecular diagnostics, and point-of-care devices. Medical imaging devices such as X-ray, ultrasound, MRI, and CT scanners provide detailed body images, while laboratory instruments analyse blood, DNA, and other samples.

Through continuous advancements, this industry contributes to improved patient outcomes, effective treatment planning, and enhanced disease management.

1. The Binding Site – £2.25B

Topping out the medical diagnostics industry deals in Q1 2023 by a wide margin, was the acquisition of The Binding Site by Thermo Fisher Scientific with an all-cash transaction worth £2.25B on 3rd January 2023.

The Binding Site is a global leader in specialty diagnostics, manufacturing a range of medical diagnostic and monitoring systems to detect cancer and immune disorders. The company’s Freelite assay is a simple, polyclonal antibody serum test, designed for detecting and monitoring multiple myeloma as well as related diseases, and is widely recommended by major clinical guideline publications.

Through these products, The Binding Site delivers groundbreaking medical solutions that significantly advance the detection and treatment of blood cancers and immune system disorders.

The acquisition of The Binding Site was completed with the intent of further enhancing scientific instruments maker, Thermo Fisher Scientific’s specialty diagnostics portfolio, with oncology testing for the detection and monitoring of multiple myeloma. The acquisition is also projected to contribute positively to Thermo Fisher’s adjusted earnings per share, with an estimated increase of $0.07 per share during the first complete year of ownership.

Stefan Wolf, Chief Executive Officer of The Binding Site since April 2021, boasts an illustrious professional background, having held a series of distinguished leadership positions within the ranks of Thermo Fisher Scientific. Notably, he served as Division President for IDD, Division President for Clinical Diagnostics & Immuno Diagnostics, and ultimately ascended to the prestigious role of Global Division President for Clinical Diagnostics.

Undoubtedly, Wolf’s tenure at Thermo Fisher not only fortified his industry acumen but also fostered invaluable relationships with prominent figures in the organisation. It is likely that these well-established connections aided in orchestrating and effectively navigating the intricacies of the present venture.

2. Immucor – £1.66B

The Georgia, US, based company Immucor was acquired by Werfen Life Group for £1.66B on March 15th 2023, financed by a combination of cash on-hand and bank debt facilities.

Immucor has a strong global presence in the Transfusion and Transplant markets, manufacturing transfusion and transplantation diagnostic products designed to provide the most accurate match for patients who are in need of blood or an organ. 

The company provides an extensive range of serology-based reagents and instruments utilised by hospitals, reference laboratories, and donor centres for pre-transfusion typing and blood screening. Additionally, they offer specialised blood bank software solutions that significantly improve the efficiency and productivity of blood bank laboratories, delivering transfusion test results to customers in a streamlined manner.

This acquisition will allow Werfen Life Group, a provider of healthcare diagnostics services based in Spain, to expand its portfolio of Specialised Diagnostics solutions for hospitals and clinical laboratories and expand its presence as a company of reference within the industry. Revenues are expected to grow substantially up to and in excess of €2.2 billion, and the company will have seven technology centres and employ more than 7,000 people worldwide, bolstering their research and development capabilities and solidifying their status as a prominent industry leader. 

Avi Pelossof currently serves as Chief Executive Officer & President at Immucor. Possessing a remarkable wealth of experience with over two decades in the medical diagnostics industry, Pelossof began his journey with Immucor in 2018 following his departure from the role of Global President of Infectious Disease at Alere – a prominent player in the domain of point-of-care diagnostics on a global scale. 

Prior to his time at Alere, Pelossof honed his expertise during a decade-long tenure as Vice President of Chembio Diagnostic Systems, which marked his inaugural foray into the captivating world of the clinical diagnostics industry.

3. Meridian Bioscience – £1.26B

Meridian Bioscience, based in Ohio, USA, was acquired by SD Biosensor and SJL Partners in an all-cash deal valued at £1.26B on January 31, 2023.

Meridian Bioscience is a leading global provider of diagnostic testing solutions, reagents, and biologic substances for the pharmaceutical and biotechnology industries. Meridian is dedicated to developing and delivering better solutions that give answers with speed, accuracy, and simplicity that redefine the possibilities of life from discovery to diagnosis. They have a well established global presence, currently operating in over 70 countries.

SD Biosensor, Inc., a global in-vitro diagnostics company, contributed the majority of funding towards the acquisition, investing an impressive total of £754.68M. They research and develop a variety of products including quick diagnostics, immunodiagnostics, molecular diagnostics and blood glucose monitoring systems for self-testing.

Founded in 2017, SJL Partners is a private equity investment manager based in Korea that specialises in cross-border partnership investments. While SJL Partners’ contribution falls slightly below that of SD Biosensor, it remains a substantial investment, amounting to an impressive £503.12 million. Their primary focus is to collaborate with industry-leading strategic companies, enabling and facilitating their expansion in international markets through inorganic growth strategies.

Jack Kenny, Meridian CEO, has an extensive career which includes notable positions at several esteemed companies. He served as the Senior Vice President and General Manager, North America, at Siemens Healthcare from 2014 to 2017. Prior to that, he held the role of Vice President and General Manager, U.S. Region, for Becton Dickinson, Diagnostic Systems, from 2012 to 2014. Before these roles, he held executive positions at Danaher Corporation and Quest Diagnostics.

Mr. Kenny’s vast experience in senior leadership within the healthcare and medical device industry, coupled with his comprehensive understanding of Meridian’s business and operations, make him an invaluable asset to the board.

4. Insight Lifetech – £152.78M

The Chinese company Insight Lifetech is currently in IPO registration after they filed to go public on March 24th 2023. The expected offering amount is £152.78M.

Insight Lifetech develops and manufactures heart intervention medical equipment intended to improve cardiovascular disease diagnosis and therapy. Their high-quality medical devices feature reliable precision diagnosis and therapy through innovative technologies, enabling physicians to save and improve lives.

As a leading player in the interventional cardiovascular device market, they have developed not only the first and sole domestic fractional flow reserve (FFR) system to be approved by the NMPA in China, but also the first domestic Intravascular Ultrasound (IVUS) system to have entered into clinical trials and completed patient enrollment in China. These two products make Insight the only domestic medical device company in China with a product portfolio in both precision intravascular physiology and imaging. 

This deal will also more than double the amount of capital Insight Lifetech have raised to date, which currently stands at £128.33M. This influx of funding will provide Insight with the necessary resources to achieve their future goals of establishing themselves as a market leader and enhancing their global brand recognition.

Insight Lifetech’s CEO & Chairman, Liang Song has also contributed to the round. With a PhD in Biomedical Engineering and more than 19 years of hands-on experience in research and development, Liang brings a wealth of expertise in imaging and diagnosis systems. His deep understanding and proficiency in these areas uniquely qualify him for his role.

Liang’s technical knowledge and practical skills are particularly valuable in leading the development and enhancement of FFR systems. These systems commonly utilise photoacoustic, optical, and ultrasonic imaging techniques. With his exceptional educational background and extensive experience, Liang is poised to guide Insight Lifetech towards groundbreaking advancements in cardiovascular disease diagnosis and therapy.

5. Perspectum – £45.74M

Based in Oxford, UK, Perspectum raised £45.74M in Series C funding in a deal led by Oppenheimer & Company on March 15th 2023.

Perspectum develops digital healthcare technology that provides safe, non-invasive alternatives to traditional abdominal testing. Their software-based medical devices combine image analysis, artificial intelligence, and magnetic resonance (MR) to support diagnosis, treatment decision-making, and monitoring of chronic diseases, multi-organ pathologies, and cancer. 

They also help determine therapy response and provide clear reports for healthcare providers, aiding clinical decision-making and patient engagement.

The company’s flagship product LiverMultiScan has been adopted by several major US hospitals, providing 77 million US adults covered by Medicare and commercial plans with access to their innovative diagnostic tool to assess and monitor chronic liver disease.

Perspectum and Nuance Communications, a Microsoft company, had previously announced a collaboration in December 2022 to deliver, at scale, Perspectum’s integrated digital platform suite for metabolic disease care and management. In addition to their current objective of scaling up its US operations, Perspectum will use the new funding to accelerate its product pipeline for multiorgan inflammatory conditions and oncology. 

Oppenheimer & Company, a leading investment bank, wealth manager and a subsidiary of Oppenheimer Holdings, led the Series C funding deal, with an investment of £21.43M through its Private Market Opportunities (PMO) initiative.

This transaction marks the PMO initiative’s fifth deal since 2017, during which time, the firm has led fund raising rounds equaling approximately $250 million. Other investors including Blue Venture Fund, HealthQuest Capital, and British Patient Capital also participated in the round.

Dr. Rajarshi Banerjee, a Co-Founder and Chief Executive Officer of Perspectum, is a trailblazer in the realm of quantitative liver imaging for clinical applications. With his groundbreaking medical research contributions in liver disease and a wealth of experience in overseeing clinical trials, he has exhibited exceptional proficiency in harnessing cutting-edge imaging technology. 

Dr. Banerjee’s impressive track record includes collaborating with multidisciplinary scientific teams to develop innovative applications in the field. Furthermore, his extensive tenure within the National Health Service since 2002, coupled with his specialised training in cardiology and internal medicine in London and Oxford, position him perfectly to spearhead innovation within his domain.

If you’re interested in further in-depth analysis of the medical devices industry; including deals, key players, trends and challenges from the last year and quarter, you can register interest for our exclusive Market Analysis Report.

Abstract Syringes

Published on 01-08-2023

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