TRENDS & PERSPECTIVES
In October, Beckman Coulter (Fullerton, CA) announced that it had entered into an agreement to acquire chemiluminescent reagent supplier Lumigen (Southfield, MI), a long-time partner, in a cash deal valued at $185 million. According to company sources, the acquisition is in line with Beckman’s efforts to control strategically important technologies.
The new business relationship between Beckman and Lumigen won’t be an unexplored venture for either of the parties. For more than 10 years, Lumigen has partnered with Beckman as sole-source supplier of the reagents used in Beckman’s immunoassay analyzers. In 2005, approximately 40% of Lumigen’s revenues came from sales of chemiluminescent reagents to Beckman. With the completion of the acquisition in November 2006, such related-party revenues have been eliminated as part of the companies’ integration. Lumigen also manufactures and licenses proprietary chemicals used by other clinical diagnostics and life-sciences manufacturers.
According to Beckman officials, the Lumigen acquisition will enable the company to access its partner’s expanding expertise and highly developed knowledge base in high-sensitivity chemistries.
In a joint press release announcing the acquisition, Lumigen founder and president Paul Schaap, PhD, commented that his company’s goal is to be “at the forefront of detection technologies for clinical diagnostics and life science communities.”
“Our current generation of products reflects this commitment and we look forward to the continued expansion of our business as we join with Beckman Coulter,” Schaap added.
“The new business complements and strengthens our immunoassay position. It fits in with our strategy of controlling critical technology—through partnerships, licenses, or acquisitions—that will contribute to the continued success of our immunoassay business,” said Richard Creager, PhD, vice president of research and development for Beckman’s immunoassay business, in the announcement. “Now, with Lumigen as part of the Beckman Coulter family, we are assured access to all of their current and future technology for immunochemical and other high-sensitivity testing.”
Beckman has 11,000 employees worldwide and reported 2005 annual sales of $2.44 billion. Of this amount, 71.5% was generated by recurring revenue from supplies, test kits, services, and operating-type lease payments.
