Matchmaking And Integration In The New World Of Diagnostics M&A
Nontraditional buyers, including Big Pharmas, life science tool companies, diversified conglomerates, and even food companies, are snapping up molecular diagnostics assets with increasing frequency, applying a variety of models to enhance their businesses.
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No significant trends emerged in diagnostics M&A or financing this past year, which did see the introduction of several government-funded initiatives, elements of which will bolster diagnostics innovation. As in other sectors of health care, the biggest question is how the incoming Trump administration could change US regulatory and funding policies.
With current technology and resources, a well-funded in vitro diagnostics company can create and pursue a strategy of information gathering and informatics application to create medical knowledge, enabling it to assume the risk and manage certain segments of patients. But few if any pharma or diagnostics firms appear poised to take advantage.
Thermo Fisher’s $13.6 billion bid for Life Technologies is a blockbuster move within the instrumentation and consumables space, and also has implications for clinical practice. It’s another sign of the growing recognition that integrating clinical workflow is an important potential area for innovation and growth, along with the desire to move genomics tools into clinical use and the development of test content by nontraditional players in diagnostics.