Dive Brief:
- Thermo Fisher said it agreed to acquire U.K.-based diagnostics firm The Binding Site Group for 2.25 billion pounds ($2.6 billion).
- Binding Site makes two blood tests for multiple myeloma called Freelite and Hevylite.
- The deal will add to Thermo Fisher’s specialty diagnostics portfolio, CEO Marc Casper said in a statement on Monday.
Thermo Fisher plans to buy The Binding Site from European private equity firm Nordic Capital in an all-cash deal.
The Binding Site’s Freelite blood test measures serum-free light chains, a protein produced by immune cells. These types of tests are the standard of care for diagnosing multiple myeloma. Its Hevylite test is used to monitor multiple myeloma patients.
Casper said the deal “perfectly aligns with our mission” and will add to the firm’s specialty diagnostics portfolio, which includes tests to monitor immunosuppressant drug levels in transplant patients and COVID-19 testing. Thermo Fisher’s specialty diagnostics business brought in $1.1 billion in revenue in the second quarter of 2022.
“The Binding Site is extremely well-respected by researchers and clinicians alike for its pioneering diagnosis and monitoring solutions for multiple myeloma,” Casper said. “We also know early diagnosis and well-informed treatment decisions for multiple myeloma can make a significant difference in patient outcomes. We are excited by the opportunity to enable further innovation in this area for the benefit of patients, and look forward to welcoming The Binding Site team to Thermo Fisher.”
The Binding Site has been growing as more patient care has shifted to early diagnosis and monitoring using regular testing, the companies said. The Birmingham, U.K.-based firm’s business has been growing by about 10% annually and it is expected to report more than $220 million in revenue in 2022. The company has more than 1,100 employees worldwide.
The acquisition is expected to close in the first half of 2023, assuming it meets closing conditions and gets regulatory approval. In the first full year of ownership, Thermo Fisher said it expects the deal will add $0.07 to its adjusted earnings per share.
