This story originally ran on Nov. 12.
Inverness Medical Innovations has terminated its contract with Thermo Fisher Scientific for the resale of Inverness' Biosite products.
The disclosure was made this week in a document filed by Thermo Fisher with the US Securities and Exchange Commission. The termination takes effect on July 1, 2010.
Inverness purchased Biosite in 2007. Among the products offered by Biosite are protein biomarker-based tests for congestive heart failure and cardiovascular diseases.
In its SEC filing, Thermo Fisher said that it believes Inverness terminated the contract and decided to sell directly to customers because of Thermo Fisher's recent decision to expand its diagnostic product offerings. Last month it announced it had completed its acquisition of German diagnostics firm BRAHMS for $471 million.
Later in October, it launched its copeptin assay for the diagnosis of acute myocardial infarction. The assay was developed by BRAHMS.
For 2009, Thermo Fisher expects $200 million in revenue from the sale of Biosite products. Because of the termination of the contract, that figure is anticipated to be cut by more than half in 2010, the company said. Sales of Biosite products are expected to be "minimal" in 2011 and beyond.
Thermo Fisher said that it has signed an agreement with another unnamed supplier of diagnostic products and expects $40 million in sales resulting from the agreement, offsetting a portion of the drop in Biosite sales.