Thermo Fisher Scientific has agreed to acquire California-based point-of-care molecular diagnostic company Mesa Biotech in a deal worth up to $500 million.
The consideration includes nearly $450 million in cash and an additional amount of up to $100 million, which will be subject to Mesa Biotech achieving certain milestones post-acquisition.
The molecular diagnostic company has developed and commercialized a PCR-based rapid point-of-care testing platform. This platform can be used for the detection of SARS-CoV-2, Influenza A and B, Strep A, respiratory syncytial virus (RSV), and other infectious diseases.
Mesa Biotech’s technology will expand the availability of gold standard nucleic acid PCR amplification to point-of-care diagnostics, said Thermo Fisher Scientific.
Based in San Diego, Mesa Biotech has a workforce of nearly 500 employees and 2020 revenues of around $45 million.
Mesa Biotech had obtained 510(k) clearance and clinical laboratory improvements amendments (CLIA) waivers for Accula Flu A/Flu B, RSV, and Strep A tests from the US Food and Drug Administration (FDA).
In addition to that, the Accula System had secured emergency use authorization (EUA) for SARS-CoV-2 in vitro diagnostic testing from the FDA. The Accula System is currently available for use in patient care settings, and is claimed to give results inside 30 minutes.
Commenting on Thermo Fisher acquisition of Mesa Biotech, Mark Stevenson -executive vice president and chief operating officer of Thermo Fisher Scientific, said: “Mesa Biotech’s innovative platform will enable us to accelerate the availability of reliable and accurate advanced molecular diagnostics at the point of care. Since the start of the pandemic, Thermo Fisher has acted quickly to provide support to the scientists and healthcare professionals at the frontlines of combating COVID-19.
“The addition of Mesa Biotech’s easy-to-use, rapid PCR-based test is highly complementary to our existing offering and will further help us meet the continuing demand for COVID-related testing while we work to rapidly scale and develop point-of care tests for other infectious diseases in the future.”
The deal, which is subject to regulatory approval and other customary closing conditions, is likely to be wrapped up in Q1 2021.
Following the closing of the deal, Mesa Biotech will operate under Thermo Fisher’s life sciences solutions segment.
Ingo Chakravarty – president and CEO of Mesa Biotech, commenting on Thermo Fisher acquisition of Mesa Biotech, said: “I am extremely proud of the remarkable accomplishments Mesa Biotech has achieved to date and excited about the prospects of becoming a part of Thermo Fisher.
“Mesa’s innovative rapid PCR platform technology, combining PCR accuracy with mobility and test results in 30 minutes, has already played a meaningful role in the collective efforts combating the pandemic. Thermo Fisher’s scale, innovation and global reach will allow us to more significantly amplify the impact our technology will have on human health, during the pandemic, and far beyond.”