Zoetis Inc. has completed the purchase of Scandinavian Micro Biodevices (SMB), a pioneer in developing and manufacturing microfluidic "lab on a chip" (LOC) diagnostic analyzers and tests for veterinary point-of-care services for $80 million.
The acquisition adds to Zoetis' complementary point-of-care diagnostics portfolio, giving the company an expanded and promising pipeline in this fast-growing segment of the animal health industry.
Privately-held SMB commercialized the first point-of-care, LOC, specialty diagnostic analyzers and tests used in veterinary critical care, primarily for companion animals. SMB's pipeline of products presents opportunities in other specialty segments that will bring to market innovative technologies that have the potential to advance the standards of diagnosis and care in animal health.
Its proven, proprietary LOC platform integrates advanced microfluidic technology with a wide range of diagnostic tests, an intuitive customer interface and data management capabilities. The company currently sells its QuickVet analyzer and test cartridges in international markets, and it supplies the VSpro line in North America to Abaxis through a distribution agreement.
"This acquisition brings Zoetis a company that has demonstrated the ability to bring to market next-generation, point-of-care diagnostics with pioneering technology, engineering excellence, and a passion for innovation," said Alejandro Bernal, Executive Vice President, Strategy, Commercial and Business Development for Zoetis.
"The value from this transaction will be realized in combining SMB's proprietary LOC platform and pipeline with our deep knowledge of animal science and biology, global commercial scale, and R&D expertise. Together we can bring our veterinary customers better solutions across the full continuum of care from prediction and early detection of disease to prevention and treatment."
"We are confident that we can achieve our ambitions to grow our business as part of Zoetis," said Ole Kring, Chief Executive Officer of SMB. "Zoetis has grown its point-of-care immunodiagnostics portfolio and is renowned for developing and providing the veterinary community with high-quality medicines, vaccines and technical services.
"By combining our experience, production and R&D capabilities, we can enhance our ability to develop point-of-care diagnostics to address veterinarians' most pressing challenges in clinics and on farms. With Zoetis' global presence, we expect to bring next-generation diagnostic solutions to more veterinary customers worldwide."
"It is a privilege to welcome the Scandinavian Micro Biodevices team, who shares our zeal for supporting customers and helping them best serve the animals in their care," said Michael Sullivan, Vice President, Global Diagnostics at Zoetis. "The SMB business will be tightly integrated with our Diagnostics organization and will benefit from Zoetis' additional investment in R&D and global commercial capabilities to stay focused on achieving R&D milestones and growth."
The veterinary diagnostics market is valued at more than $4.3 billion globally, including reference laboratory, point-of-care diagnostics, and diagnostic imaging and is expected to grow to $6.7 billion by 2021. The point-of-care segment, which comprises approximately 50 percent of the overall animal testing market, remains the fastest growing segment at 8 to 9 percent CAGR, driven by demand for easy-to-administer, rapid tests for use in clinics and on farms.