Thermo Fisher Scientific Inc. (NYSE: TMO) will acquire San Diego diagnostic company, Mesa Biotech Inc. for around $450 million in cash, the firm announced on Jan. 19. Under the terms of the agreement, Thermo Fisher will pay up to an additional $100 million in cash upon the completion of certain milestones following the close of the transaction.
Mesa Biotech is a private company leading in point-of-care diagnostic testing with a platform that detects infections for SARS-CoV-2, Influenza A and B, respiratory syncytial virus (RSV) and Strep A.
"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, executive vice president and chief operating officer of Thermo Fisher Scientific.
Mesa’s rapid, PCR-COVID-19 test, Accula SARS-CoV-2, received Emergency Use Authorization (EUA) from the Food and Drug Administration (FDA) and provides visual results within about 30 minutes.
"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," Stevenson said.
The Sorrento Valley biotech has approximately 500 employees and 2020 revenues of approximately $45 million. The transaction is expected to be completed in the first quarter of 2021 and upon completion, Mesa will become part of Thermo Fisher's Life Sciences Solutions Segment.
“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," said Ingo Chakravarty, president and CEO of Mesa Biotech.