- 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 Diagnostics
SMB 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 Health
The
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 Zoetis
Zoetis (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 SMB
Scandinavian 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,
2014
2 Veterinary Diagnostic Market Report, Markets and
Markets, April 2016
Zoetis
Media:
Elinore White, 1-973-443-2835 (o)
elinore.y.white@zoetis.com
or
Bill Price, 1-973-443-2742 (o)
william.price@zoetis.com
or
Investors:
Steve Frank, 1-973-822-7141 (o)
steve.frank@zoetis.com
or
For SMB:
Media:
Ole Kring, +45 2033 7858
okr@smb.dk
or
Jarne Elleholm, +45 41190136
je@cphlsa.com