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Pfizer to enter veterinary diagnostic sector following acquisition of Synbiotics
Pfizer's purchase of Synbiotics signals its entry into the veterinary diagnostic arena.
-- Pfizer Animal Health's acquisition of Synbiotics Corp. signals its entry into the veterinary diagnostic market.
Pfizer is buying Synbiotics, a privately held, Kansas City-based company specializing in the development, manufacture and marketing of immunodiagnostic tests for companion and food production animals. In an announcement today, Pfizer officials report they hope to close on the deal later this week. Details of the acquisition and selling price were not disclosed.
"Veterinary immunodiagnostics, which uses antigen-antibody reaction to detect viruses or bacteria in animals, is a sector growing an estimated 8 percent annually, twice the rate of the animal health industry as a whole," Pfizer says. The global immunodiagnostics market is estimated at $735 million, Pfizer reports.
"Our acquisition of Synbiotics, with its best-in-class product portfolio, promising research and development pipeline and manufacturing capability, will bring Pfizer Animal Health closer to its goal of becoming a comprehensive solutions provider to the animal health industry," says Juan Ramon Alaix, president, Pfizer Animal Health. "By integrating animal health diagnostics with our innovative portfolio of vaccines and medicines, we can do more to help veterinarians deliver optimal care for livestock and companion animals and provide the right medicine to the right animal at the right time."
The acquisition is thought to allow Pfizer Animal Health to enhance its offerings to veterinarians at point of care in the clinic and on the farm, and expand into products for diagnostic reference laboratories and reproductive services for canine breeders.
Synbiotics estimates that its common shareholders will be entitled to receive up to approximately $0.306 per share in cash in connection with the acquisition, of which approximately $0.019 per share will be held in escrow as a fund against which Pfizer may make claims for losses arising from any breaches of Synbiotics' representations, warranties, covenants and agreements and similar customary matters.