|
|
 |
|
Viewing report
|
|
|
|
Diagnostics Dealmaking Activity - First Quarter 2004 to Third Quarter 2005
Decision Resources, Inc, Dec 2005, Pages: 14
The medical diagnostics industry is an important and fast-growing segment of the life sciences industry. The diagnostics companies included in this report range from makers of test kits to companies that provide diagnostic testing services. Among life sciences activity tracked between the first quarter of 2004 and the third quarter of 2005, diagnostics companies participated in 5% of financing deals, 5% of alliances, and 6% of ownership changes. Diagnostics deals tended to have a smaller average dollar value relative to the industry as a whole, but the diagnostics industry exhibited increasing levels of activity during the period covered by this report.
In this report, we discuss financings, ownership changes, and alliances in the diagnostics field.
Activities of Note
- Diagnostics companies garnered $915 million (1.6%) of the total money raised in life sciences financings during the period covered by this report. Among the various financial vehicles, private placement deals delivered the most money ($228 million), followed closely by venture capital deals ($199 million).
- The number of financing deals completed by diagnostics companies increased significantly in 2005 relative to 2004. By the end of the third quarter of 2005, diagnostics companies had completed 56 financing deals, up significantly from the 42 deals completed in all of 2004.
- Diagnostics companies participated in ownership changes (merger and acquisition deals; business line acquisitions) at a rate comparable to their participation in financings deals and alliances. On average, ownership changes involving diagnostics companies were of less value than those completed by the life sciences industry as a whole. The largest diagnostic ownership change that took place during the period covered in this report was Quest Diagnostics' purchase of Lenexa, Kansas-based LabOne.
- Diagnostics companies are participating in alliances at an increasing rate. During 2004, alliances involving one or more diagnostics companies averaged, per quarter, approximately 4.7% of all life sciences alliances. During the first three quarters of 2005, diagnostics alliances averaged 6.4% of life sciences alliances per quarter.
- Biotechnology companies were the most common partners for diagnostics companies in alliance formation, accounting for 29% of all diagnostic alliance partners. Devices, supplies, and equipment companies were next with 20%.
|
|
|
|
