In an announcement, BioFire Diagnostics would be bought out by BioMerieux for USD450 million. The deal would make the latter, a French biotechnology firm, would be aimed to consolidate its position as a force in the market of infectious disease diagnostics.
BioMerieux business manufactures tests to determine diseases as well as quality of food and water as well as cosmetics. The announcement of the purchase of BioFire, a molecular biology technology firm that creates tests to determine viral and bacterial infections was funded through debt, at a ratio of 6.4 times the projected earnings for the year.
The deal is expected to be completed by 2014 and is a clear sign that the industry is moving towards the utilization of high end biotechnologies to be better at the identification of diseases and the creation of targeted medications.
One of the major issues to the purchase is the current state of BioFire, which is in the red. BioMerieux had expected that the purchase of diluting the French firm's operating income before its non-recurring items for the next couple of years. It did project the company to garner between 1% and 2% to its growth by 2015 comes around.
Join the Conversation