- Purchases a pioneer in developing and
manufacturing microfluidic “lab on a chip” diagnostics for
veterinary point-of-care services for $80 million
- Adds to diagnostics portfolio with
specialty test instruments and cartridges
- Gains pipeline of next-generation
diagnostics to help veterinarians better detect, prevent and treat
disease
- Continues to deploy capital to
strengthen its pipeline to support future growth
Zoetis Inc. (NYSE:ZTS) today announced that it has completed the
purchase of Scandinavian Micro Biodevices, a pioneer in developing
and manufacturing microfluidic “lab on a chip” 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-Scandinavian Micro Biodevices (SMB)
commercialized the first point-of-care, “lab on a chip” (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.”
Leading Edge Innovation in Veterinary DiagnosticsSMB has
approximately 35 employees and headquarters in Farum, Denmark. The
company has built its reputation on leading edge innovation in LOC
point-of-care diagnostics for the animal health industry. Its late
and mid-stage pipelines are anticipated to bring a range of new
point-of-care analyzers and tests to market and to contribute to
several diagnostic product launches over the next few years. Access
to rapid, cost-efficient point-of-care diagnostics will empower
veterinarians to detect and potentially prevent disease earlier and
treat it sooner, leading to improved health outcomes for the
animals in their care.
Veterinary Diagnostics: A Growing and Vital Segment of Animal
HealthThe veterinary diagnostics market is valued at more than
$4.3 billion1 globally, including reference laboratory,
point-of-care diagnostics, and diagnostic imaging and is expected
to grow to $6.7 billion by 20212. 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 CAGR2
, driven by demand for easy-to-administer, rapid tests for use in
clinics and on farms.
Zoetis entered the fast growing segment of diagnostic tests in
2010 with the acquisition of Synbiotics Corporation, a leader in
immunodiagnostic tests for infectious diseases in companion and
livestock animals. Since then, Zoetis has expanded its WITNESS® and
SERELISA® lines of diagnostics and its PROFLOK® diagnostic tests
for the poultry industry. With the integration of the assets of
Abbott Animal Health in 2015, Zoetis added the ALPHATRAK® blood
glucose monitoring system to its diagnostics portfolio for
companion animals.
“It is a privilege to welcome the Scandinavian Micro Biodevices
team, who share 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.”
For more information, visit www.zoetis.com and
www.smb.dk/smb/home.
About ZoetisZoetis
(zô-EH-tis) is the leading animal health company, dedicated to
supporting its customers and their businesses. Building on more
than 60 years of experience in animal health, Zoetis discovers,
develops, manufactures and markets veterinary vaccines and
medicines, complemented by diagnostic products and genetic tests
and supported by a range of services. Zoetis serves veterinarians,
livestock producers and people who raise and care for farm and
companion animals with sales of its products in more than 100
countries. In 2015, the company generated annual revenue of $4.8
billion with approximately 9,000 employees. For more information,
visit www.zoetis.com.
About SMBScandinavian Micro Biodevices (SMB), an
innovative high-tech company with 35 employees, focuses on the
veterinary diagnostic market, where it develops Point-of-Care (POC)
solutions for use in the veterinary clinic and on the farm. SMB
products consist of one-time use microfluidic Lab-on-a-chip (LOC)
cartridges and bench top analyzers. The business model is a
“Nespresso model” where it sells the instrument and different tests
to the individual instrument. SMB produces both instruments and the
one-time use cartridges at its facility in Farum, Denmark. For more
information, visit www.smb.dk/smb/home and www.quickvet.net.
Forward-Looking
Statements: This press release contains forward-looking
statements, which reflect the current views of Zoetis with respect
to business plans or prospects, future operating or financial
performance, future guidance, future operating models, expectations
regarding products, future use of cash and dividend payments, tax
rate and tax regimes, changes in the tax regimes and
laws in other jurisdictions, and other future events.
These statements are not guarantees of future performance or
actions. Forward-looking statements are subject to risks and
uncertainties. If one or more of these risks or uncertainties
materialize, or if management's underlying assumptions prove to be
incorrect, actual results may differ materially from those
contemplated by a forward-looking statement. Forward-looking
statements speak only as of the date on which they are made. Zoetis
expressly disclaims any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. A further list and description of
risks, uncertainties and other matters can be found in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2015,
including in the sections thereof captioned “Forward-Looking
Information and Factors That May Affect Future Results” and “Item
1A. Risk Factors,” in our Quarterly Reports on Form 10-Q and in our
Current Reports on Form 8-K. These filings and subsequent filings
are available online at www.sec.gov, www.zoetis.com, or
on request from Zoetis.
1 Veterinary Diagnostic Market Report, Markets and Markets,
20142 Veterinary Diagnostic Market Report, Markets and Markets,
April 2016
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160808005455/en/
ZoetisMedia:Elinore White,
1-973-443-2835 (o)elinore.y.white@zoetis.comorBill Price,
1-973-443-2742 (o)william.price@zoetis.comorInvestors:Steve Frank, 1-973-822-7141
(o)steve.frank@zoetis.comorFor SMB:Media:Ole Kring, +45 2033 7858okr@smb.dkorJarne Elleholm, +45
41190136je@cphlsa.com
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