Zoetis will pay more than £1.5 billion to buy diagnostic instrument developer Abaxis.
According to a media release from both companies, the acquisition will enhance Zoetis’ presence in an animal health category that has seen compound annual growth of about 10% during the past three years.
Broader range
Abaxis is known for its VetScan portfolio of bench top and handheld diagnostic instruments and consumables, while Zoetis is primarily a provider of veterinary vaccines and medicines, with lines in diagnostic products, genetic tests, biodevices and a range of services.
Zoetis chief executive Juan Ramón Alaix said: “Together we can bring more vet customers a broader range of products that fit into our comprehensive solutions and innovations – from prediction and early detection of disease in animals, to prevention and treatment.”
Global presence
Clint Severson, Abaxis chairman and chief executive, added: “We see a prime opportunity to grow our business as part of Zoetis.
“We recently invested in expanding operations in Europe, Latin America and the Asia-Pacific region, with 20% of revenue in the fiscal year 2018 coming from our international operations.
“Zoetis has the global presence and direct veterinary customer relationships to deliver greater value to more customers around the world and accelerate the growth of our international operations.”
Rapid growth
The veterinary diagnostics category, which includes reference laboratory and point-of-care diagnostics, is estimated to be worth more than £2 billion, according to the release.
Zoetis expects the diagnostics category to grow faster than the animal health industry, with growth in the mid to high single percentage points driven by international adoption of point-of-care equipment due to rising medicalisation rates, an increasing standard of veterinary care and the convenience of in-clinic testing.
The company expects to complete the acquisition before the end of 2018.
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