The company drew $49 from the credit facility to repay an earlier outstanding loan and expects to draw another $27 million to, in part, pay for its acquisition of GenePOC.
Cincinnati, Ohio-based Meridian will acquire Quebec City-based GenePOC for $120 million, and hopes to quickly convert customers to a PCR-based instrument.
Canaccord said Meridian Bioscience's preannounced second quarter top-line miss and expected ongoing weakness in its MDx business were among the reasons for the downgrade.
The company said it has faced competitive pressures in its diagnostics business, partially offset by organizational streamlining efforts it initiated last year.
Meridian CEO Jack Kenny said the firm needs to develop a new MDx platform, while Genapsys resurfaced with an update on its portable sequencing platform.
The company's CEO noted softness in both its diagnostics and life science segment. The projected revenues would fall short of the consensus Wall Street estimate.
Two patients fell ill, and one subsequently died, following a fecal microbiome transplant that harbored multi-drug-resistant bacteria, according to the New York Times.
