Mixed Q1 2023 Results in the Diagnostics Sector; COVID-19 Testing Revenues Slump
The Diagnostics Market: Despite a bustling M&A market in 2022, the diagnostics sector appears to have experienced a slowdown in deal activity, though it still remains relatively strong compared with previous years. As of May 15, 2023, a total of 26 deals have been announced year-to-date. Although this represents a 42% decline compared to the 45 deals observed during the same period in 2022, it still signifies a substantial 44% and 86% increase from the deal count in 2021 and 2020, respectively. These figures highlight the enduring interest in the diagnostics market, which increased out of necessity during the COVID-19 pandemic and continues to drive investment and strategic... Read More »
Quest Diagnostics to Acquire Haystack Oncology
Quest Diagnostics and Haystack Oncology announced on April 27 a definitive agreement for Quest to acquire Haystack in an all-cash equity transaction. Quest expects the acquisition to be modestly dilutive to earnings over the next three years and accretive by 2026. The transaction is expected to be completed in the second quarter of 2023, subject to customary regulatory review. J.P. Morgan Securities LLC acted as exclusive financial advisor to Quest, and Weil, Gotshal & Manges LLP acted as Quest’s legal advisor. Goldman Sachs & Co. LLC acted as exclusive financial advisor to Haystack, and Goodwin Proctor LLP acted as Haystack’s legal advisor. Haystack Oncology is an... Read More »
Sonic Healthcare Acquires Medical Laboratories Duesseldorf For $198 Million
Sonic Healthcare, Ltd. announced on April 26 that it made its second acquisition of the month by purchasing Medical Laboratories Duesseldorf (MLD) for approximately $199 million USD (converted from €180 million and AUD$297.6 million). The acquisition is expected to bring in revenues of more than $55.2 million in FY2024. This follows Sonic’s previous acquisition of German diagnostic company Diagnosticum for $209 million, marking the largest purchase price in the Laboratories, MRI and Dialysis sector of the year. Founded in 1968, MLD conducts diagnostics for sexually transmitted infections, gastrointestinal infections and respiratory infections. It employs 300 staff including 13... Read More »
Labcorp Subsidiary Dynacare Acquires Valley Medical Laboratories
Dynacare, a subsidiary of Labcorp, announced its acquisition of Kelowna, Canada-based Valley Medical Laboratories for an undisclosed price, effective April 24, 2023. Dynacare CEO Vito Ciciretto said he’s looking forward to providing a bigger range of health care services to British Columbians. Dr. Jason Doyle, Valley Medical’s medical director, said the two companies have the same culture of service, making the union a natural fit. Valley Medical Laboratories is a series of physician-owned community laboratories that have served the Okanagan Valley since 1969. The firm worked with the British Columbia government to be the first laboratory to provide on-demand HIV testing in the... Read More »