bioMérieux acquires a majority stake in Hybiome and strengthens its presence both in China and in the immunoassay market09 November, 2018
bioMérieux, a world leader in the field of in vitro diagnostics, today announces the acquisition of a majority holding in Suzhou Hybiome Biomedical Engineering Co.Ltd. This announcement follows the acquisition of a minority stake in July 2018.
Founded in 2009 and based in Suzhou (China), Hybiome is specialized in automated immunoassay tests. The company develops, manufactures and markets a complete range of diagnostic solutions (reagents, instruments and software) cleared by the China Food and Drug Administration (CFDA).
Hybiome markets two automated, mid-throughput immunoassay systems (AE-180 and AE-240) using the latest generation CLIA1 technology and featuring a menu of nearly 80 parameters. Hybiome also recently received CFDA clearance for the AE-120 system, to further increase access to its menu of assays. Hybiome’s installed base has about 1,000 active instruments that are used primarily in medium-size hospitals (100 to 500 beds), known as Grade 2 facilities. In China, the immunoassay market represents around €2 billion and reports growth of about 20-25%. It has witnessed the increasingly important role of local suppliers, especially within the Grade 2 hospital segment.
bioMérieux has been marketing its diagnostic solutions in China for more than 25 years. The Company has longstanding expertise in the field of immunoassays through the VIDAS® range, which is widely used in China for high medical value tests in hospitals with over 500 beds and in more specialized facilities (Grade 3).
“bioMérieux has forged solid ties with China for over 25 years and we are delighted to enter into this agreement with Hybiome, a company with a remarkable expertise in the field of immunoassays. This new important step is fully in line with our international development strategy, which consists in locating research and production as close as possible to patients’ and healthcare needs”, said Alexandre Mérieux, Chairman and CEO of bioMérieux.
“Thanks to complementarity of the Hybiome and bioMérieux product ranges, we will be able to provide our automated immunoassay solutions to more healthcare professionals, while advancing and serving healthcare in China in a long-term vision,” added Pierre Boulud, Corporate VP, Asia Pacific Region, bioMérieux.
Mr. Dong, founder and Chairman of Hybiome, stated: “We are very pleased to join the bioMérieux group, which is recognized for its expertise and the quality of its immunoassay product offering. The convergence gives Hybiome the opportunity to further accelerate our growth in this market, which is especially buoyant for immunoassays, and to strengthen our leading position as a local Chinese business.”
Hybiome employs around 300 people, including close to 80 employees in R&D. The company has both manufacturing facilities and research laboratories, with plans for expansion within the Suzhou Industrial-Medical Park. It expects to exceed 20 million euros in sales in 2018, a sharp increase over 2017.
The acquisition of 54% of the shares of Hybiome relies on a €165 million valuation, on top of which additional expenses of 25 million euros were incurred as consideration for additional assets such as distribution rights and existing installed base. Following the acquisition of this majority stake, bioMérieux will continue to increase its holding which is subject to put/call options on minority shareholders’ interests, to the finalization of additional procedures applicable to this type of property transfer in China and to regulatory approval and customary closing conditions.
BIOMÉRIEUX IN CHINA
The Mérieux family has developed close ties with China spanning three generations. Today China holds an important role in the strategy of bioMérieux:
- 3rd largest bioMérieux subsidiary in terms of revenue
- 400 people working in R&D, manufacturing and sales
- 6 offices: Shanghai, Beijing, Chengdu, Guangzhou, Hong Kong and Taipei
In addition, the Company is committed to promoting educational programs for healthcare professionals, with a focus on the medical and economic value of diagnostics and initiatives to raise awareness about major public health challenges, such as antimicrobial resistance.
1 CLIA = ChemiLuminescence ImmunoAssays