Thermo Fisher Inks $450M Deal to Acquire Mesa Biotech

January 27, 2021 - Thermo Fisher Scientific recently announced that it entered into a $450 million definitive agreement to acquire San Diego-based Mesa Biotech, Inc. and boost the availability of reliable molecular diagnostics tests at point of care.

Mesa Biotech has developed and commercialized PCR-based, rapid point-of-care testing platforms that detect diseases such as COVID-19, influenza A and B, and Strep A, and other respiratory diseases. 

For example, the company’s Accula Flu A/Flu B, and Strep A tests have gained FDA 510(k) clearance and Clinical Laboratory Improvements Amendments (CLIA) waivers. The test also gained FDA emergency use authorization (EUA) for COVID-19 in-vitro diagnostic testing.

Currently, the Accula System is available for use in patient care settings and provides results within 30 minutes, a Thermo Fisher Scientific spokesperson said.

"Mesa Biotech's innovative platform will enable us to accelerate the availability of reliable and accurate advanced molecular diagnostics at the point of care,” Mark Stevenson, executive vice president and chief operating officer of Thermo Fisher Scientific, said in the announcement. 

"The addition of Mesa Biotech's easy-to-use, rapid PCR-based test is highly complementary to our existing offering and will further help us meet the continuing demand for COVID-related testing while we work to rapidly scale and develop point-of-care tests for other infectious diseases in the future,” Stevenson continued. 

Mesa Biotech has nearly 500 employees and revenues of approximately $45 million as of 2020. 

Under the terms of agreement, Thermo Fisher Scientific will pay nearly $100 million in cash upon the completion of certain milestones following the close of the transaction, which the company expects to happen in the first quarter of this year. 

"I am extremely proud of the remarkable accomplishments Mesa Biotech has achieved to date and excited about the prospects of becoming a part of Thermo Fisher,” said Ingo Chakravarty, president and chief executive officer of Mesa Biotech. 

“Mesa's innovative rapid PCR platform technology has already played a meaningful role in the collective efforts combating the pandemic. Thermo Fisher's scale, innovation and global reach will allow us to more significantly amplify the impact our technology will have on human health, during the pandemic, and far beyond,” Chakravarty continued. 

Point-of-care testing, especially during a pandemic, allows healthcare providers to make rapid treatment decisions when diagnosing a patient’s condition or monitoring treatment response.

Simplifying the testing process ensures that clinicians focus on providing effective quality care to patients in greatest need. 

One of the first and most well-known point-of-care COVID-19 antigen tests is Abbott’s BinaxNOW Ag Card, which is able to provide test results in 15 minutes. In September, FDA issued an emergency use authorization to Abbott for it’s BinaxNOW test. 

Currently, BinaxNOW Ag Card is authorized for point-of-care settings such as doctor offices, emergency rooms, and some hotels. 

At the beginning of October, HHS and The Rockefeller Foundation signed an agreement to identify and share effective approaches for increasing rapid point-of-care COVID-19 testing in various communities. 

Under the agreement, K-12 schools can safely re-open in select cities in The Rockefeller Foundation’s Testing Solutions Group.

As part of the initiative, HHS will provide at least 12,000 Abbott BinaxNOW COVID-19 Ag Card POC COVID-19 diagnostic tests to pilot sites, including Louisville, Los Angeles, New Orleans, and Tulsa. Rhode Island was also recently selected as a pilot state. 

At the same time, Thermo Fisher Scientific announced that it received an expansion of its EUA for a COVID-19 testing kit to include an additional sample collection method provided by digital health company, Everlywell. 

The test allows individuals to self-collect nasal swab specimens when authorized by a healthcare professional and can be expanded to assist in the rapid diagnosis of COVID-19 infections in both at-home and point-of-care settings.