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PerkinElmer acquires Shanghai Haoyuan Biotech to complement screening capabilities
WALTHAM, Mass.—PerkinElmer Inc. recently announced that it has completed the acquisition of Shanghai Haoyuan Biotech Co. Ltd., a China-based infectious disease diagnostics company, with an eye toward extending PerkinElmer's capabilities into nucleic acid blood screening. The U.S. company also sees this as a chance to gain entre into the growing molecular clinical diagnostics market in China thus, as it says, "further strengthening the company's position as a diagnostics leader in China as well as across the globe."
The purchase price for the transaction was $38 million in cash and potential future additional consideration based on the achievement of revenue-based targets. The acquisition is anticipated to be immaterial to PerkinElmer's adjusted earnings for the remainder of 2012 and 2013 and accretive beginning in 2014.
Haoyuan, a supplier of molecular infectious disease screening technologies for blood bank and clinical laboratory settings throughout China, reportedly extends PerkinElmer's portfolio by adding four infectious disease assays that are approved by China's State Food and Drug Administration. These infectious disease diagnostics tools include a qualitative 3-in-1 assay for the detection of hepatitis B (HBV), hepatitis C (HCV), and human immunodeficiency virus (HIV), two clinical quantitative assays that screen for HBV and HCV, and one qualitative assay screen for Chlamydia trachomatis and Neisseria gonorrhoeae.
"By combining PerkinElmer's robust disease screening capabilities with Haoyuan's proprietary reagents and equipment, the company will be able to offer highly sensitive systems and assays for quality detection of blood-borne infections for the Chinese market," said Robert Friel, chairman and CEO of PerkinElmer. "Integrating Haoyuan's screening products with PerkinElmer's diagnostics capabilities will help to further advance the health of the Chinese people by offering leading technology that ensures accurate diagnosis of infectious diseases at a low cost."
PerkinElmer notes that one opportunity is found in the fact that with China facing an annual 15 percent increase in the demand for donated blood, the Chinese government is now mandating and funding infectious disease screening of such blood. The Chinese government's latest five-year plan mandates that all blood be tested using nucleic acid technologies by the end of 2015.
According to PerkinElmer, compared to antibody testing methods, nucleic acid testing reduces the potential for failed detection of certain infection diseases that exhibit long incubation times between infection and detection. The company also notes that there are approximately 780,000 people living with HIV/AIDS in China and that the World Health Organization reports chronic infection rates of 8 percent to 10 percent of the adult population with HBV and 3.2 percent of China's 1.4 billion people living with HCV.