Thermo Fisher wagers on early cancer diagnostics in $2.6B cash deal for multiple myeloma test maker
Always on the lookout for the next thing to buy, Thermo Fisher Scientific has settled on an oncology diagnostic player for its latest acquisition.
The life sciences conglomerate is shelling out $2.6 billion (£2.25 billion) to acquire The Binding Site Group from a group of private equity investors, integrating a suite of diagnostic assays and instruments for blood cancers and immune system disorders into its specialty diagnostics business.
In particular, Thermo Fisher highlighted The Binding Site’s tests for multiple myeloma diagnosis and monitoring as a standout product.
With a broad mission of serving science, Thermo Fisher has been steadily bringing smaller biopharma service providers under its umbrella, from instruments to contract research organizations to manufacturers to companion diagnostics — even as it kept expanding internal capabilities and opening new manufacturing sites. Last December, it completed its largest deal to date: a $17.4 billion buyout of the CRO PPD. Weeks later, it also bagged PeproTech, a manufacturer of recombinant proteins.
When asked about the deal pipeline during a Q2 call, CEO Marc Casper responded:
Yes. So from a capital deployment perspective, I really wanted to do the deeper dive on the progress of PPD, and we did a large acquisition in December, right? And the first thing we have to demonstrate is that we’re great owners and operators of the businesses that are part of the family, and that’s always our No. 1 priority, and that business is performing great. And we have an active pipeline.
And when I think about how valuations have come in many sectors, that creates opportunities, right? So we’re actively engaged as we always are, and we’re well-positioned to capitalize on the M&A opportunities that will be out there in the landscape.
Just days ago, Casper reiterated the importance of “strategic M&A” to his capital deployment strategy.
Thermo Fisher expects The Binding Site to contribute $220 million of revenue in 2022 — modest relative to its own projection of $43.8 billion overall — but execs are eager to bring what they say is a “large and dedicated” group of customers on board.
“The Binding Site is extremely well-respected by researchers and clinicians alike for its pioneering diagnosis and monitoring solutions for multiple myeloma,” Casper said in a statement. “We also know early diagnosis and well-informed treatment decisions for multiple myeloma can make a significant difference in patient outcomes.”
Headquartered in Birmingham, UK, The Binding Site was formerly owned by a group led by the private equity firm Nordic Capital. It employs 1,100 employees globally.