The Top 10 Diagnostics Deals of 2021

As expected, M&A activity in the labs and medical diagnostics space bounced back in terms of both deal volume and value this year. There were seven different billion-dollar acquisitions in 2021, one more than in top-heavy 2020 where the relatively high number of nine-figure deals belied the significant drop in deal numbers. Here’s a quick rundown of the M&A highlights of 2021

Rank	Buyer	Target	Reported Price
1	Thermo Fisher	PPD	$17.4 billion
2	Siemens Healthineers	Varian Medical Systems	$16.4 billion all cash
3	Danaher	Aldevron	$9.6 billion
4	Illumina	Grail	$8.0 billion cash + stock
5	PerkinElmer	BioLegend	$5.25 billion all cash
6	DiaSorin	Luminex	$1.8 billion all cash
7	Roche	GenMark Diagnostics	$1.8 billion all cash
8	Pacific Biosciences	Omniome	$800 million cash + stock
9	Hologic	Mobidiag	$795 million cash + debt assumption
10	PerkinElmer	Oxford Immunotec	$591 million cash

Biggest Deal (by Dollar Value): Thermo Fisher’s $17.4 Billion Acquisition of PPD

Having just narrowly failed to acquire Qiagen months before the public health emergency and massive demand for new COVID-19 tests, Thermo Fisher Scientific rebounded quite nicely by posting the year’s biggest deal—the $17.4 billion cash acquisition of PPD. The acquisition of the global clinical research and lab services firm whose operations in 50 different countries generated total revenues of $4.7 billion in 2020 enriches the value that Thermo Fisher can deliver to its extensive network of pharmaceutical and biotech customers. The Massachusetts-based diagnostics powerhouse followed up with a $591 million acquisition of molecular PCR test firm Mesa Biotech in March.

Most Surprising Deal: Illumina’s Acquisition of Grail

Illumina’s move to acquire former liquid biopsy spinoff Grail for $8 billion (including $3.5 billion in cash and $4.5 billion in shares of Illumina common stock) was a head scratcher from the moment it was announced in September 2020. But the real shocker was how and when it closed. While regulatory turbulence wasn’t totally unexpected, the fact that it came mostly from Europe in the form of review from the European Commission (EC) Directorate-General was a stunner. Staring a $300 million termination fee in the face while the EC dragged its feet, Illumina threw caution to the wind and closed the deal in August. It’s now holding Grail as a wholly-owned company that will operate independently while it awaits word from the EU. Assuming it doesn’t have to be unwound, acquiring Grail and its highly touted blood-based cancer screening Galleri test significantly strengthens Illumina’s position in early cancer diagnostics.

Most Active Company: PerkinElmer

No company was more aggressive in the diagnostics M&A space in 2021 than PerkinElmer. Awash in COVID-19 testing cash, the life sciences and genetics test giant made no fewer than four strategic deals during the year, including two of the top 10: the $5.25 billion acquisition of BioLegend, the largest in company history (at #5) and the acquisition of tuberculosis detection test firm Oxford Immunotec for $591 million (#10). On May 13, PerkinElmer announced that it had reached an agreement to buy Nexcelom Bioscience for $260 million in cash. Founded in 2003, Nexcelom produces tools and instruments for cell counting and analysis, as well as fit-for-purpose cell counting method selection and development instruments that follow ISO cell counting standards for use in development of cell, gene, and immuno-oncology therapies, virology drugs and vaccines. Four days after the Nexcelom buy, PerkinElmer made another bold move by agreeing to shell out $155 million in cash for Immunodiagnostic Systems (IDS) to bolster its immunodiagnostics business. Here’s a summary of the key new M&A diagnostic deals announced or closed in December 2021:

MERGERS, ACQUISITIONS & ASSET SALES

Acquiring Company	Target(s)	Deal Summary
Thermo Fisher Scientific	PPD	Price: $17.4 billion cash + assumption of roughly $3.5 billion of net debt Status: Expected to close by end of 2021 Acquisition of global provider of clinical research and lab services for pharmaceutical and biotech industry, which will be merged into Thermo Fisher’s laboratory products and services business unit
Quidel	Ortho Clinical Diagnostics	Price: $6 billion in cash and stock + assumption of Ortho’s $2 billion debt Status: Expected to close in H1 2022 Firms anticipate combined cost synergies of $90 million by end of year three, and revenue synergies greater than $100 million by 2025 driven by operational efficiencies, shared administrative functions and supply chain optimization
LabCorp	Personal Genome Diagnostics	Price: $450 million in cash + $125 million in additional payments based on performance milestones Status: Expected to close in H1 2022 Acquisition of cancer genomics firm expands LabCorp’s next-generation sequencing genomic profiling capabilities and bolsters liquid biopsy assets, allowing for offering kit-based options enabling hospitals and labs to run tests internally
Roche	TIB Molbiol Group	Price: Undisclosed Status: Roche completes share purchase agreement to acquire 100 percent of TIB Molbiol’s outstanding shares Acquisition of TIB Molbiol, which will operate as a diagnostics division subsidiary, expands Roche’s molecular diagnostic solutions
Quest Diagnostics	LabTech Diagnostics	Price: Undisclosed Status: Closed Quest bolsters presence in South by acquiring provider of lab services in South Carolina, North Carolina, Georgia and Florida
Hologic	Bolder Surgical	Price: $160 million Status: Closed Hologic advances strategy to build out its surgical franchise by acquiring provider of advanced energy vessel sealing surgical devices
Becton Dickinson	Scanwell Health	Price: Undisclosed Status: Closed BD bolsters position in digital at-home testing for infectious diseases by acquiring provider of smartphone-based at-home tests
Co-Diagnostics	Idaho Molecular and Advanced Conceptions	Price: Roughly $50 million for about 4.72 million shares of newly issued common stock and 465,000 common stock warrants Status: Expected to close by year’s end Co-Diagnostics has been collaborating with 2 private biotech firms to develop YourTest, an at-home/point-of-care diagnostic device, based on Co-Diagnostics’ Eikon PCR platform Co-Diagnostics acquires rights to all existing and future assets and intellectual property related to the technology as it begins principle and large-scale manufacturing of the device
Castle Biosciences	Cernostics	Price: $30 million upfront (either all in cash or $20 million in cash and $10 million in Castle common stock) + up to $50 million more in cash and/or common stock based on Cernostics’ achievement of milestones in 2022 Status: Closed Acquisition of company specializing in spatial biology and artificial intelligence-driven image analysis of tissue biopsies
Bico	Biosero	Price: $165 million, including roughly $103.9 million in cash, $34.7 million in consideration shares and $26.4 million in combined cash and stock to be paid out over the next three years Status: Acquisition agreement signed but no closing date announced Acquisition of lab workflow software provider enables Bico to bolster its software capabilities and offer customers fully automated and connected lab workflow solutions
Northwest Pathology	Avero Diagnostics (Progenity affiliate)	Price: $10.9 million Status: Closed Progenity exits lab business and stems $28 million in annual cash losses by selling off Avero, its diagnostics affiliate
CellCarta	Biogazelle	Price: Undisclosed Status: Closed Acquisition of Belgian genomic testing firm enables Canadian precision medicine lab services provider to secure clients in fields with high demand in genomic analysis, such as immuno-oncology and cell and gene therapy
Eurofins Scientific	Genetic Lab	Price: Share purchase agreement with Genetic Lab parent firm Transgenic at undisclosed price Status: No closing date announced Acquisition of Japanese molecular biology-based testing provider for diagnostics, biomarker development and drug discovery
Rebus Biosystems	EEL Transcriptomics	Price: Undisclosed Status: Closed Rebus acquires intellectual property related to an enhanced electric, or EEL, fluorescence in situ hybridization assay, which can now be run on firm’s Esper platform
Todos Medical	NLC Pharma	Price: $2.2 million in initial funding + $2 million in cash over 15 months + 13.333 million ordinary shares of Todos’ stock + single digit net royalties Status: Expected to close before year end Todos to acquire all 3CL protease biology-related assets from NLC Pharma and form a majority-owned subsidiary called 3CL Sciences to leverage those assets to develop diagnostics, therapeutics and dietary supplements
Discovery Life Sciences	In Vitro ADMET Laboratories	Price: Undisclosed Status: Closed Acquisition of contract research firm fortifies Discovery’s position in research biospecimen and biomarker development market

Editor's Note: This article was updated on January 7, 2022.