More consolidation in the in vitro diagnostics (IVD) market may soon happen. Bio-Rad Laboratories and Qiagen are reportedly in merger discussions. The Wall Street Journal, which broke the story on Oct. 10, tabbed the potential deal as being worth $10 billion should it go through.
Both companies have a global presence and make most of their sales outside the U.S., said Bruce Carlson, Senior Vice President at Kalorama Information, part of the Science and Medicine Group in Arlington, Va.
“If the deal occurs, there could be a compounding of strengths in infectious disease testing, which is the fastest growing and largest area of IVD right now,” Carlson commented. “Qiagen is strong in tuberculosis testing and has an HPV [human papillomavirus] business. Bio- Rad offers a range of microbiology tests and also does quality control and blood banking.”
Representatives for both IVD companies did not return requests for comment from The Dark Report.
Increased Market Share
Bio-Rad in Hercules, Calif., was tied for ninth place among the biggest global IVD companies based on its 2021 earnings of $2.9 billion, according to analysis from The Dark Report. (See TDR, “2021 Rankings of the World’s Top 12 IVD Companies,” Aug. 29, 2022.)
Qiagen, based in Germany, barely missed placing on our IVD company list with revenues of $2.3 billion in 2021. Revenues for both companies include life science and research laboratory products, in addition to IVD, Carlson said.
A combined company would likely increase its ranking on the top IVD list.
“A deal between Qiagen and Bio-Rad would be the latest tie-up in the medical diagnostics market, which has grown as the pandemic increased demand for medical testing,” The Wall Street Journal reported.
The continued consolidation of the IVD market points to fewer large companies holding more market share. Most recently, at the end of last year, Quidel acquired Ortho Clinical Diagnostics in a deal worth $6 billion. (See TDR, “Ortho Clinical Diagnostics to Be Acquired by Quidel,” Jan. 10, 2022.)
“As IVD companies look at this potential merger and others that have occurred— such as Quidel and Ortho and SD Biosensor and Meridian Bioscience—it might beget other mergers or at least more talks,” Carlson observed. “No one wants to be left out as a smaller distributor.”
Changes for Lab Customers
Depending on the specific details of the potential merger, clinical laboratories that use products from either Qiagen or Bio- Rad could face changes in technical support services and sales.
Carlson also saw other aspects for customers. “Long term this deal could be potentially beneficial from a standpoint of laboratories seeking to reduce the amount of purchase processes, vendor contracts, and service agreements,” he said.
Lab managers and pathologists should monitor news about the potential deal between Qiagen and Bio-Rad, as its implications may be far reaching for the IVD industry as firms try to expand market share and drum up post-pandemic business.
Contact Bruce Carlson at firstname.lastname@example.org.