NEW YORK (GenomeWeb) – Cepheid said after the close of the market on Wednesday that it has reached an agreement to acquire the customer relationships of its former distribution partner, the Laboratory Supply Company, for $21 million.
The firms have been partners since 2012 to drive adoption of Cepheid's GeneXpert System in US hospitals with fewer than 150 beds, resulting in an increase of about 200 customers in Cepheid's installed base in that market, the Sunnyvale, Calif.-based molecular diagnostics firm said.
Cepheid Chairman and CEO John Bishop said that the firm's scale of commercial operations and strategic focus on all customer sizes led Cepheid to believe that now is the right time to "step up our commitment to the smaller hospital market." He noted that there are 14 tests available for GeneXpert making the platform relevant to customers of all sizes.
"Further, the unique scalability of the GeneXpert System makes it an excellent choice for smaller hospitals operating on a stand-alone basis or as part of a consolidated group," Bishop said.
Cepheid has terminated its prior distribution agreement with Labsco. The agreement had been schedule to end on Dec. 31, 2014. Obligations related to future sales to existing customers contained in the prior agreement have also been terminated.