PerkinElmer has made two acquisitions that bolster its prenatal screening business and expand its diagnostics offerings to include infectious diseases. The transactions also give the company broader access to emerging markets in Asia.
PerkinElmer paid RMB 435 million (about $63.64 million) for Shanghai-based SYM-BIO Lifescience, which supplies diagnostic instruments and related reagents to hospitals in the country particularly for infectious diseases. Additionally, PerkinElmer bought the genetic screening business of Surendra Genetic Labs, which is based in Chennai, India, and focuses on fetal, maternal, and newborn health.
The purchase of SYM-BIO Lifescience doubles PerkinElmer's access to the hospital market in China. The transaction also adds production capacity in Shanghai and the surrounding area as well as R&D resources.
The company expects to use this as a base from which to expand its existing prenatal and newborn screening business as well as the acquired operations in the China. “The acquisition provides an unmatched opportunity for advanced products from China to be introduced to regional and global markets,” Zhang Sheng, president of SYM-BIO Lifescience.
The addition of SYM-BIO's infectious disease products also allows for the expansion of PerkinElmer’s regional and global offerings. The acquisition is expected to have no material impact on the firm’s adjusted earnings per share for 2009 and be slightly accretive in 2010.
Surendra Genetic Labs, on the other hand, pads PerkinElmers prenatal screening technology and services. “With approximately 25 million annual births, the current rate of uptake of prenatal and neonatal health services in India remains small,” notes Dr. S. Suresh, director, Surendra Labs. “In partnership with PerkinElmer, we look forward to increasing the availability of screening services throughout the country via a successful combination of local infrastructure and global technologies and expertise.”