Shares of Thermo Fisher Scientific (TMO) - Get Report rose Tuesday after the medical/scientific equipment giant announced it’s buying Mesa Biotech, a privately-held molecular diagnostic company, for $450 million in cash.
Thermo Fisher will pay up to an additional $100 million in cash upon the completion of certain milestones following the close of the transaction. Thermo expects the deal to close this quarter.
Thermo shares recently traded at $510.50, up 1.46%, and have jumped 48% over the last year through Friday.
Mesa Biotech has developed and commercialized a PCR-based rapid point-of-care testing platform available for detecting infectious diseases including the coronavirus, influenza A and B, respiratory syncytial virus (RSV) and Strep A.
“Mesa Biotech's patented technology expands the availability of gold standard nucleic acid PCR amplification to point-of-care diagnostics,” Thermo said in a statement. Mesa Biotech is based in San Diego and has 500 employees. It registered revenue of $45 million last year.
Mesa Biotech's Accula System has received Emergency Use Authorization (EUA) from the Food and Drug Administration for SARS-CoV-2 in vitro diagnostic testing and is now available for use in patient care settings, providing results within 30 minutes, with higher accuracy than other rapid tests on the market, Thermo said.
Mesa’s Accula Flu A/Flu B, RSV and Strep A tests have obtained 510(k) clearance and Clinical Laboratory Improvements Amendments waivers from the FDA.
"Mesa Biotech's innovative platform will enable us to accelerate the availability of reliable and accurate advanced molecular diagnostics at the point of care,” said Mark Stevenson, Thermo’s chief operating officer.