Abacus Diagnostics, Kaivogen and Labrox establish …

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MedTech Perspectives | Tuesday, September 21, 2021

To establish a global leader in diagnostics, Abacus Diagnostica, Kaivogen and Labrox have joined forces.

FREMONT, California: Three Finnish biotechnology companies – Abacus Diagnostica, Kaivogen and Labrox have merged to become an international leader in in vitro diagnostics. The new company will provide the global market with a one-of-a-kind comprehensive solution for point-of-care testing, including infectious disease and cancer diagnostics. The next-generation approach will allow tests to be performed anywhere and anytime, thereby speeding up accurate diagnosis and treatment. Rather than sending samples to external laboratories, samples are collected and analyzed on site. The new point-of-care testing solution is expected to launch in 2024.

The new company brings together some of the world’s most advanced equipment and biochemical expertise. It will allow healthcare professionals and patients to get tests faster, easier and more cheaply. The three emerging companies each have years of diagnostic experience. By 2020, the combined annual net sales of the three companies will exceed 12 million euros, with operating profit of 3.2 million euros. Net sales are expected to reach 14 million euros in 2021, while operating profit is expected to increase from the previous year. The new business will employ around 90 people. The name of the new company will be determined in September.

The merger of Abacus Diagnostica, Kaivogen and Labrox into a new company is a natural extension of the current partnership of the three companies. The companies have previously collaborated in collaborative research and development and marketing activities and have served as suppliers. The combination will increase investments in research and development, sales and operational synergies, and customer expansion. In addition, companies will be better positioned to meet global demand and capitalize on the market’s substantial development potential.

The new company will retain the majority of its current shareholders. Finnish investors will own around 95% of the new company. Employees will continue to control a significant part of the business. A share exchange agreement will be used to affect the transaction. It should be finished in October. The most important shareholders of the companies support the operation. The board of directors and CEO of the new company will be appointed in the fall.

With point-of-care testing, patients get fast and accurate results

“Our comprehensive solution for point-of-care testing leverages the expertise of all three companies. Together, we can offer a solution for future diagnostics that none of the three companies could provide on their own, ”says Henri Sora, CEO of Labrox.

The next-generation point-of-care test system currently under development will allow both antibody and polymerase chain reaction (PCR) tests to be performed on a single device. Currently, no other point-of-care testing system combines these two technologies. The new gadget will allow the identification of more than 10 bacteria or viruses from a single sample using the polymerase chain reaction (PCR). As a result, the gadget can be used to determine whether a patient’s symptoms are due to the coronavirus, the flu, or a common cold. Antibody tests can be used to diagnose previous or prolonged disease or malignancy.

Three future pillars: diagnosis of infectious diseases, oncological diagnosis and contract manufacturing

The rise of the new business is fueled by the growing demand for decentralized diagnostics as the mobility of people and the spread of new diseases increase and populations age.

“Our future growth pillars are infectious disease and cancer diagnostics, and contract manufacturing. With our comprehensive know-how, we can transform, for example, cancer diagnostics.” We are developing more sensitive and accurate tests that will provide a new and highly efficient way of screening with a focus on early diagnosis of cancer from blood samples. Our test, which is currently in the most advanced stage of development, will improve the monitoring of ovarian cancer, ”said Leena Kokko, CEO of Kaivogen.

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