BD acquires HandyLab for $275 million

BD (Becton, Dickinson and Company) (NYSE: BDX) today announced the completion of its acquisition of HandyLab, Inc., an Ann Arbor, Michigan-based company that develops and manufactures molecular diagnostic assays and automation platforms.

In May 2009, BD and HandyLab announced an exclusive agreement for BD to develop and commercialize molecular assays on the HandyLab Jaguar(TM) platform, the first fully integrated molecular diagnostic system to provide hands-off operation, incorporating clinical sample preparation, nucleic acid extraction, and microfluidic real-time polymerase chain reaction (PCR) amplification and detection in a simple bench-top system. The self-contained workstation is designed to accommodate both batch workflows and on-demand testing for maximum lab efficiency and flexibility.

With this acquisition, BD will migrate its BD GeneOhm(TM) molecular assays for Methicillin-resistant Staphylococcus aureus (MRSA), Clostridium difficile and Vancomycin-resistant Enterococcus (VRE) onto the new platform and will market them as the new BD MAX(TM) system, an evolution of the current Jaguar(TM) system.

"HandyLab's high-quality organization and industry-leading technology complement BD's capabilities and healthcare-associated infections strategy, which requires the throughput, simplicity and flexibility that the HandyLab platform provides," said Philippe Jacon, President, BD Diagnostics - Diagnostic Systems. "We plan to provide laboratories with a broad molecular test menu on a very advanced automation platform."

The healthcare-associated infections (HAI) opportunity is emerging worldwide and is potentially very large, and BD has a leading position with its BD GeneOhm molecular testing product line. As hospital screening and testing programs expand, they will require flexible, state-of-the-art automation systems to support their evolving needs. The flexibility of this novel platform will allow further expansion of the BD molecular diagnostic menu.

BD paid $275 million for HandyLab. The financial impact of the acquisition on fiscal year 2010 earnings has been incorporated into the guidance BD provided during its earnings call on November 4, 2009.