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THE GENERATION DIAGNOSTIC SYSTEM
Boditech Med Acquires Immunostics to Penetrate theBoditech Med Acquires Immunostics to Penetrate the
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Boditech Med Acquires Immunostics to
US In-Vitro Diagnostics Market
Purchased all shares of Immunostics
enter into the US private label market
Boditech Med Inc. (206640,KQ), a Korean in-vitro diagnostic company, acquired a US in-vitro diagnostic company to penetrate the US market.
Boditech Med closed the deal to purchase all of the shares of Immunostics, Inc. a US in-vitro diagnostics company, for a purchase price of $13.625 million on March 2, 2016. Established in 1970, Immunostics specializes in developing and manufacturing rapid point of care diagnostic testing products (“POCT”) such as FOB (Fecal Occult Blood) tests, pregnancy tests and infectious disease tests.
Based on their proven qualities, Immunostics has sold its products for more than 40 years mainly through leading distributors under private label brands. The company has recorded revenue of approximately $8 million for the last five years. After conducting a year of market research identifying possible US acquisition candidates, Boditech Med has finalized the acquisition discussions with the owners of the Immunostics during the last 5 months.
Following the acquisition, Kenneth Kupits will continue as the Immunostics CEO to generate synergies with Boditech Med.
As a result of this acquisition Boditech Med is well positioned to penetrate the world’s largest in-vitro diagnostic market, the total size of which is estimated to be $15.5 billion. This can be done efficiently and effectively because accessing the established networks of the large healthcare distributors is essential to entering into the US market. Boditech Med anticipates it will start selling its products under private label brands through large distributors such as McKesson and Henry Schein.
Initially, Boditech Med’s iFOB and ichroma analyzer, which received FDA clearance in 2014, will be launched soon in 2016. Later, AFIAS6, an automatic diagnostic analyzer that supports multiple analytes, is scheduled to get its FDA clearance and be sold in 2017. If these products are manufactured in the US, Boditech believes that the ‘Made-in-USA’ premium will help sales in the US as well as in other markets such as the Middle East and Latin America.
The US market is the world’s largest POCT market, as diagnostic testing is rapidly expanding to nursing homes, pharmacies and homes. Boditech Med can now penetrate such markets through this acquisition. Boditech Med’s advanced POCT technology helps to produce highly sensitive and quantitative diagnostic results, produced from only one drop of finger-prick blood within 2~15 minutes.
Boditech Med commented “We became the first Korean diagnostic company to have meaningful sales exposure in the top 3 major in-vitro diagnostic markets; the US, China and Japan. We can launch our products quickly with private label brands through Immunostics’ distribution channel on top of the $8 million of revenue to be derived from the acquisition of Immunostics.”