GenMark Diagnostics

History

2021: Roche bought GenMark Diagnostics for $1.8 billion

In mid-March 2021, Roche acquired the American company GenMark Diagnostics for $1.8 billion. With the new acquisition, Roche is trying to infiltrate the field of infectious disease diagnosis to challenge its competitors, such as the French company bioMerieux. The transaction should be closed in the second quarter of 2021.

GenMark performs "panel tests" to simultaneously detect several pathogens. In addition to testing kits for respiratory infections (including for) coronavirus COVID-19 and sepsis GenMark by March 2021 is developing a third kit for diagnosing gastrointestinal infections.

Laboratory equipment GenMark Diagnostics

The market for such tests in 2019 was $800 million per year, said Thomas Schinecker, head of diagnostics at Roche, citing industry data. He added that by 2024 the market will grow by 20% annually and reach $2 billion. By March 2021, according to his estimates, GenMark occupies 7% of the market, but Roche intends to significantly increase this figure within four years.

Firstly, we can use our commercial opportunities, "Shineker explained. - Secondly, we can use the accumulated knowledge in the production of various products to increase the scale of production of diagnostic tests and at the same time reduce costs.

Around the world, clinics and laboratories use 792 Genmark analyzers. For comparison, bioMerieux has already installed more than 14,000 BioFire analyzers. Analysts are inclined that the new deal will help Roche capture not so much centralized laboratories already occupied by competitors, but the hospitals themselves. However, there is nothing wrong with this, because "a more visible presence in hospitals (which will eventually conduct more tests at home) makes strategic sense."^[1]

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