To establish a worldwide diagnostics leader, Abacus Diagnostica, Kaivogen, and Labrox have joined forces.
FREMONT, CA: Three Finnish biotechnology firms-Abacus Diagnostica, Kaivogen, and Labrox have merged to become an international leader in in-vitro diagnostics. The new business will provide the worldwide market a one-of-a-kind comprehensive solution for point-of-care testing, including infectious disease and cancer diagnostics. The next-generation approach will enable testing to occur anywhere and anytime, therefore expediting accurate diagnosis and treatment. Rather than sending samples to external laboratories, samples are collected and analyzed on-site. The new point-of-care testing solution is expected to launch in 2024.
The new business unites some of the world's most advanced equipment and biochemical expertise. It will enable healthcare practitioners and patients to get tests more quickly, easily, and affordably. The three emerging firms each have years of diagnostics experience. By 2020, the three firms combined annual net sales will exceed EUR 12 million, with an operating profit of EUR 3.2 million. Net sales are expected to reach EUR 14 million in 2021 while operating profit is expected to rise from the previous year. The new firm will employ around 90 people. The new company's name will be determined this September.
The merger of Abacus Diagnostica, Kaivogen, and Labrox into a new business is a natural extension of the three companies' current partnership. The firms have already collaborated on collaborative research and development and marketing activities and served as suppliers. The combination will increase investment in research and development, sales and operational synergies, and client expansion. Additionally, the firms will be better positioned to satisfy worldwide demand and capitalize on the market's substantial development potential.
The new firm will retain a majority of its present stockholders. Finnish investors will own around 95% of the new firm. Employees will continue to control a sizable piece of the firm. A share exchange agreement will be used to affect the transaction. It is scheduled for completion in October. The businesses’ most significant shareholders support the deal. The new company's Board of Directors and CEO will be appointed in the autumn.
With point-of-care testing, patients get fast and accurate findings
“Our total solution for point-of-care testing harnesses the expertise of all three companies. Together, we can offer a solution for future diagnostics that none of the three companies could provide on their own,” says Henri Sora, CEO of Labrox.
The next-generation point-of-care testing system now under development will enable both antibody and polymerase chain reaction (PCR) tests to be performed on a single device. At the moment, no other point-of-care testing system combines these two technologies. The new gadget will enable the identification of more than 10 bacteria or viruses from a single sample using polymerase chain reaction (PCR). As a result, the gadget may be used to ascertain if a patient's symptoms are due to coronavirus, influenza, or a regular cold. Antibody testing can be used to diagnose a previous or protracted illness or malignancy.
Three future pillars: infectious disease diagnostics, oncology diagnostics, and contract manufacturing
The rise of the new firm is being fueled by increasing demand for decentralized diagnostics as people's mobility and the spread of new diseases grow and populations age.
“Our future growth pillars are diagnostics for infectious diseases and cancers, and contract manufacturing. Supported by our comprehensive knowhow we can transform for instance diagnostics for cancer. We are developing more sensitive and more accurate tests that will provide a novel and highly effective way of conducting screenings by focusing on the early diagnosis of cancer from blood samples. Our test, which is currently at the most advanced stage of development, will improve monitoring of ovarian cancer,” says Leena Kokko, CEO of Kaivogen.