Medical firm Cepheid buys plastics molder

By Michael Lauzon
Correspondent

Published: September 28, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, Medical, Injection Molding

SUNNYVALE, CALIF. (Sept. 28, 1:50 p.m. ET) — Medical diagnostics firm Cepheid plans to buy a plastics molder to overcome supply constraints for cartridges it relies on for its systems, according to a news report.

GenomeWeb News reported Sept. 27 that Cepheid President and CEO John Bishop told analysts that the firm’s diagnostic systems sales were hurt in the third quarter by “intermittent interruptions in the supply of Xpert cartridge parts.”

Bishop did not identify the current molder of its cartridge parts or which molder it is targeting to acquire. Cepheid CFO Andrew Miller reportedly told analysts the price of the acquisition would be in the mid-teens of millions of dollars. Cepheid would move the molding operating into a new facility, buy new equipment to boost molding volumes and also eventually set up a molding operation in Cepheid’s facility in Sweden.

Sunnyvale-based Cepheid has developed a compact, fast, automated molecular diagnostic workstation system called GeneXpert. The system relies on patented cartridges.

Cepheid officials told analysts that its third quarter revenue would be in the $79 million to $81 million range, below its target and below analyst’s expectations. They blamed the shortfall on a shortage of cartridges as Cepheid was developing higher capacity production tooling and processes.

Cepheid systems are employed in clinics around the world to check on infectious diseases such as tuberculosis. The firm had sold 3,350 systems globally by the end of its second quarter, June 30. Its second quarter sales was $81 million and net profit, $1.1 million.

Cepheid officials could not be reached as of press time.


Comments

Medical firm Cepheid buys plastics molder

By Michael Lauzon
Correspondent

Published: September 28, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

VisiPak adds to customer mix, product offerings with Tulox acquisition

March 5, 2015 2:19 pm ET

VisiPak has acquired Tulox Plastics Corp., a maker of clear plastic packaging.    More

Image

ResTech companies renamed Plastics Molding Manufacturing

March 5, 2015 3:54 pm ET

Plastics Molding Manufacturing Inc. is the new name for the ResTech Plastic Molding LLC family of companies.    More

Image

Auto supplier Motus adds more production as it buys Leon Interiors

March 5, 2015 10:52 am ET

Motus Integrated Technologies, a Tier 1 automotive interiors supplier, is getting bigger, adding the assets of Tier 2 supplier Leon Interiors Inc.    More

Image

PET makes it possible to have your beer and be sustainable too

March 5, 2015 10:45 am ET

PET could replace stainless steel beer kegs in a material swap product developers say will be more environmentally friendly and cost effective for...    More

Image

Mold maker Moldworx building in Arizona to bring in more molding

March 5, 2015 10:13 am ET

Moldworx LLC has begun leasing more space in Gilbert, Ariz., to allow it to grow its injection molding business.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events