Eurobio acquires 100% of Dutch transplant diagnostics startup GenDx

Eurobio acquires 100% of Dutch transplant diagnostics startup GenDx

Published: 25-08-2022 11:38:00 | By: Pie Kamau | hits: 366 | Tags:

Paris, France-based Eurobio Scientific (Eurobio) has reached agreement to acquire all outstanding shares of Dutch-based transplant diagnostics startup GenDx for an amount of €135 million (net of adjusted cash) to be paid in cash at closing to its current shareholders.

This acquisition will allow Eurobio Scientific to complete its commercial portfolio with a portfolio of 100% proprietary products among the most efficient in the field of HLA1 diagnostics in order to assess the compatibility between donors and recipients in the context of organ and marrow transplants. It will also strengthen its geographical footprint, mainly in Europe and the USA. Payment will be made entirely in cash, financed with the Group's cash and partially through a bank loan for a total of 90 million euros. Completion of this operation is subject to the finalization of the bank financing contract.

Based in Utrecht, the Netherlands, GenDx specializes in the molecular diagnostics of transplants by HLA typing of organs or patients as part of the evaluation of compatibility between donors and recipients. Among others, it is one of the pioneers of typing based on genomic sequencing (SBT or Sequencing Based Typing) for which it currently offers high-resolution solutions based on the most recent NGS2 technologies.

The company has more than 80 employees, mainly based in the Netherlands, including a sales force present in Benelux, Germany and the USA. In 2021, GenDx generated €17 million in revenue, for €6.9 million in EBITDA. During the first half of 2022, GenDx's revenue is estimated at €11.2 million, for €5.4 million of EBITDA3 .

In 2021, transplantation diagnostics accounted for 23.8% of Eurobio Scientific Group's (the “Group”) non-COVID revenue, i.e. 20 million euros. The acquisition of GenDx should enable the consolidation of the Group's presence in this specialty and generate new international development synergies. Given the characteristics of GenDx, the strong complementarity between the two groups, and the many synergies identified, the valuation of this transaction is in line with those of recent acquisitions involving similar assets in the field of medical diagnostics.

Denis Fortier, Deputy Managing Director and co-CEO, Eurobio Scientific: "This operation is transformative for Eurobio Scientific and is fully in line with the development strategy that we have been successfully pursuing for several years and which is based on a direct presence in Europe and an increase in the share of proprietary products. The strong complementarity between our two groups should make it possible to increase the advance of our Group both technologically, geographically and commercially.”

Better access to care and advances in medicine are resulting in a growing demand for transplants. However, this is hampered by the availability of organs to be transplanted. A precise and rapid diagnosis, making it possible to increase the success rate of these surgeries, promotes a better balance between supply and demand. The transplant diagnostics market is therefore growing rapidly, and the technological and commercial strength of the new entity resulting from the merger of Eurobio Scientific and GenDx, should make it a leading player.

Wietse Mulder, CEO and Co-founder, GenDx: “For GenDx it was important to get closer to a group led by entrepreneurs. Eurobio Scientific, through its demonstrated agility during the COVID crisis and its complementarity with our activities, quickly appeared to us as the best partner to ensure the continued development of transplantation activities, while strengthening the technological base of our new Group. On a more personal note, I am delighted to join this new group and enable the creation of a leading player in the field of molecular diagnostics in Europe. ”

www.eurobio-scientific.com
www.gendx.com