US Company Zoetis Acquires Scandinavian Micro Biodevices for $80 million
Farum, Denmark – August 8, 2016 - Scandinavian Micro Biodevices ApS (www.smb.dk) has today been acquired by US Company Zoetis Inc. (NYSE:ZTS) for a sum of US $80 million with the view to strengthening Zoetis’ diagnostics capabilities and portfolio.
Zoetis, the world’s largest global animal health company, has today acquired Scandinavian Micro Biodevices (SMB), a pioneer in developing and manufacturing microfluidic-based point-of-care diagnostic products for the veterinary market. Zoetis expects to invest in SMB’s operation in Farum in the coming years, thereby realizing the growth potential of SMB and creating new jobs within product development, production and support functions.
Leading Edge Innovation in Veterinary Diagnostics
Over the last 9 years Scandinavian Micro Biodevices ApS (SMB) has built its reputation on cutting edge innovation in Lab-on-a-chip (LOC), point-of-care diagnostics for the animal health industry. The one-time use cartridge and a small tabletop analyzer are marketed as VetScan® VSpro® in North America and as QuickVet® in the rest of the world. SMB’s proven, proprietary LOC platform integrates advanced microfluidic technology with a wide range of diagnostic tests, add sample - read result functionality, an intuitive customer interface, and data management capabilities.
This has resulted in SMB achieving an average annual revenue growth rate of more the 30% over the last seven years and being named Gazelle Company in 2015 by the Danish financial newspaper Børsen. Today SMB has a very strong development pipeline with several new diagnostic platforms underway and expects to launch a series of ground breaking new products over the next few years.
“I am extremely proud of what the team at SMB has achieved during my time as Chairman,” said Jarne Elleholm, Chairman of the Board. “The fact that the team has been able to develop a strong product line, achieve global distribution, turn the company profitable in 2012 and grow as quickly as they have done, is a fantastic achievement and a reflection of the quality and dedication of the employees at all levels in the company in the company.”
“We are confident that we can achieve our ambitions to grow our business as part of Zoetis,” said Ole Kring, Chief Executive Officer of SMB. “Zoetis is a global leader in the veterinary market renowned for its high-quality medicines, vaccines, and technical services. By combining the innovative products and production capability developed at SMB with Zoetis’ market experience and global reach, we can enhance our ability to develop point-of-care diagnostics to address veterinarians’ most pressing challenges in clinics and on farms. Zoetis’ global presence will allow us to bring next-generation diagnostic solutions to more veterinary customers worldwide, and we are looking forward to joining the Zoetis diagnostics team.”
“Being acquired by Zoetis is a fantastic opportunity” said Niels Kristian Bau-Madsen, Chief Operating Officer of SMB. “To achieve our R&D milestones and growth plans, Zoetis will be investing in the business and focus on recruiting highly talented people needed in development, production, and support functions as we further scale up the business. We are aiming to continue to growing as quickly whilst at the same time preserving the lean and agile start-up mentality that is a core value at SMB.”
Investment Director John Riis Mortensen, Vecata Invest A/S, said “SMB is clear proof of the strength of the venture model at its best. We invested in a highly competent management team and a strong technology base at a very difficult time in 2008. But with the combined efforts of SMB’s investors, a very strong board including key veterinary industry persons from the US and an experienced management team, we have been able to build a strong company exporting 99% of its output. This has resulted in outstanding value creation for the investors and a Danish growth success story.”
Jefferies International Limited acted as sole financial adviser to SMB.
Veterinary Diagnostics: A Growing and Vital Segment of Animal Health
The veterinary diagnostics market is valued at more than US $4.3 billion2 globally including reference laboratory, point-of-care diagnostics, and diagnostic imaging, and is expected to grow to US $6.7 billion by 20212. The point-of-care segment, which comprises approximately 50 percent of the overall animal testing market, remains the fastest growing segment at 8 to 9 percent CAGR2 driven by the strong demand for easy-to-administer, rapid tests for use in clinics and on farms.
Scandinavian Micro Biodevices (SMB) is an innovative company headquartered in Farum, Denmark with 35 employees. We focus on the veterinary diagnostic market, where we develop Point of Care (POC) solutions for use in the veterinary clinic and on the farm. Our product consists of a one-time use microfluidic Lab-on-a-chip (LOC) cartridges and small bench top analyzers. The business model is a “Nespresso model” where we sell the instrument and different tests for the individual instrument. To date, SMB has sold more than 7.000 instruments globally. SMB produces both instruments and the one-time use cartridges at our facility in Farum, Denmark. For more information, visit www.smb.dk and www.quickvet.net.
Zoetis (zô-EH-tis) is the world’s leading animal health company, dedicated to supporting its customers and their businesses. Building on more than 60 years of experience in animal health, Zoetis discovers, develops, manufactures and markets veterinary vaccines and medicines, complemented by diagnostic products and genetic tests and supported by a range of services. Zoetis serves veterinarians, livestock producers, and people who raise and care for farm and companion animals with sales of its products in more than 100 countries. In 2015, the company generated annual revenue of US $4.8 billion with approximately 9,000 employees. For more information, visit www.zoetis.com.
For further information please contact:
Jarne Elleholm, Chairman of the board
Phone: +45 41 19 01 36
Ole Kring, CEO
1 Veterinary Diagnostic Market Report, Markets and Markets, 2014
2 Veterinary Diagnostic Market Report, Markets and Markets, April 2016