Grifols to acquire a Novartis diagnostics business unit for $1,675 millions
The Diagnostics Division of Grifols will account for more than 20% of the company’s turnover, versus the current 4%.
By Biocat
Grifols has announced an agreement with Novartis to acquire its diagnostics business unit in transfusion medicine and immunology for $1,675 millions (€1,240 millions). The operation, which is expected to be finalized in the first half of 2014, is part of the Catalan biotechnology group’s growth strategy based on boosting other business areas to complement their activity in plasma proteins.
The assets acquired include its highly innovative, market-leading NAT technology (Nucleic Acid Amplification Techniques), instrumentation and equipment for blood screening, specific software and reagents, as well as patents, brands, licenses and royalties, together with the production plant in Emeryville (California, United States) and commercial offices in the United States, Switzerland and Hong Kong.
After finalization of the purchase, Grifols estimates annual revenue for its Diagnostics Division will be approximately $1,000 millions (€740 millions), making up more than 20% of the group’s turnover, versus the current 4%. The company’s other two divisions are Bioscience and Hospital. In 2012, the company posted sales over €2,620 millions. Grifols’ voting stock (class A) is traded on the Spanish Continuous Market and included in the Ibex-35, while non-voting shares (Class B) are traded on the Continuous Market and the Nasdaq in the USA.
Grifols President and CEO Víctor Grifols said in a press release that this “is a step further into our vision to become a world leader also in the diagnostics field. To achieve this we knew we needed a significant presence in United States". This process began in 2003 with the acquisition of the ATC assets and continued with the Talecris transaction in 2011.
Grifols will incorporate professionals from this area of Novartis into its staff, taking on approximately 550 new workers. The company currently employs more than 11,000 professionals around the world.
More information is available on the Grifols and Novartis websites.