Services firm Mesa buys out molecular diagnostics player for a cool $300M as genetics testing gains steam
The rise in genetic testing has spurred a revolution in drug development, and now a biopharma services firm is looking to jump on board in a big way.
Mesa Laboratories will acquire Agena Bioscience, a genetic diagnostics company based out of San Diego, for $300 million, the company announced Tuesday.
Agena is expected to reel in between $63 million and $67 million in revenue in Mesa’s first year of ownership. That number doesn’t include any possible Covid-19 revenue, which is expected to bring in another $3 million to $5 million in revenue.
The acquisition is expected to close in Mesa’s Q3, which ends Dec. 31.
Mesa focuses on quality control devices that offer sterilization and disinfection and biopharmaceutical development.
“We believe that ‘The Mesa Way’ approach to continuous improvement will help the Agena team to continue to rapidly scale both commercially and operationally,” CEO Gary Owens said in a press release.
Mesa’s stock price was up nearly 4.5% following the announcement. During a meeting with investors discussing its Q1 results, the company revealed that revenue increased 17% while operating decreased 13%. Owens cited the Delta variant of Covid-19, saying a collision between that and the increase in vaccinations across the world left uncertain expectations for the company economically.
Agena offers molecular testing for genetics labs and boasts of its MassArray system that allows labs to focus on a set of regions that have a known association with a disease, which can simplify the testing process.
Agena’s CEO Peter Dansky will come aboard Mesa as its new leader of the clinical genomics division. In a press release, he said:
We are proud of our track record in bringing the power of genomics to the clinical setting in hereditary diseases, pharmacogenomics, oncology, infectious disease and sample integrity testing. Our robust technology platform along with deep customer partnership has been the foundation of our success. We built our company based on a strong team-oriented values system, and we see a great fit with the Mesa culture. We look forward to working with the Mesa team to expand the applications we deliver and innovate new technologies for clinical genomics.