Medical firm Cepheid buys plastics molder

By Michael Lauzon
Correspondent

Published: September 28, 2012 6:00 am ET

Related to this story

Topics Medical, Mergers & Acquisitions, 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

Amcor buys Chinese flexible packaging plant

December 18, 2014 1:47 pm ET

Australian-based global packaging company Amcor Ltd. is buying a Chinese flexible packaging business for 211 million RMB (US$31.4 million).    More

Image

Indian auto parts maker set to buy assets in Germany, Mexico

December 18, 2014 10:35 am ET

Indian auto parts maker Samvardhana Motherson Gropup is buying the assets of insolvent German plastics car parts producer Scherer & Trier (S&T).    More

Image

Sweden's Indutrade buys Belgian packaging firm Verbeek

December 18, 2014 9:42 am ET

Sweden's Indutrade AB has purchased all the shares in Belgium's Verbeeck Packaging Group.    More

Image

Röchling buys two UK firms

December 18, 2014 9:24 am ET

Germany's Röchling Engineering Plastics SE & Co. KG has expanded its presence in the high-performance plastics market by acquiring two British firms...    More

Image

Milacron opening Mexico technical center, considers another in Brazil

December 16, 2014 12:58 pm ET

Milacron LLC plans to officially open a new technical center in Querétaro, 140 miles northwest of Mexico City, early in 2015, and the company is consi...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

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

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events