Diagnostic Deals: Urgent Need for Coronavirus Diagnostics Fuels Strategic Collaboration

Not surprisingly, teaming up for development and commercialization of coronavirus (COVID-19) detection and vaccination products was a major theme of strategic alliance making during the period. Notable deals included:

• The collaboration between Curetis Group company Ares Genetics and China-based BGI Group to bring the latter’s newly CE-marked COVID-19 molecular test to the European market via an NGS testing service launched by Ares using BGI reagents;
• The pairing of LGC Biosearch Technologies with diagnostics software developer UgenTec on a research-use-only AI-based coronavirus detection workflow;
• Expansion of the current joint development agreement between Takis Biotech and DNA Sciences subsidiary LineaRx to preclinical development of a linear DNA vaccine for COVID-19; and
• Johnson & Johnson’s new partnership with the U.S. Biomedical Advanced Research and Development Authority (BARDA) for accelerated development of a coronavirus vaccine.

The Month in M&A

M&A activity was sluggish in February, in terms of both deal volume and value. The deals that did take place were largely modest in scope and at undisclosed prices. Among the transactions for which purchase price was reported, Meridian Bioscience’s acquisition of Israeli GI and liver diagnostics firm Exalenz Bioscience was the most expensive at 6.10 shekels per share and 169 million shekels in total ($49 million). The deal, which is expected to close in the second quarter, will enable Meridian to bolster its stool antigen product line via addition of Exalenz’ BreathID Breath Test Systems, a, a point-of-care urea breath test platform for H. pylori detection.

In releasing its 2019 fourth quarter earnings, Exact Sciences disclosed that it had made a strategic move in the cancer diagnostics space via  a pair of acquisitions:

• NGS-based cancer diagnostic test maker for therapy selection Paradigm Diagnostics; and
• Viomics, a molecular firm specializing in biomarker selection for cancer diagnostics.

Here’s a summary of the key M&A and other strategic diagnostic deals announced from late January through February: