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

Ohio molder Denbro Plastics moves to new location

September 29, 2014 6:17 pm ET

Logo products injection molder Denbro Plastics Co. has moved to another plant within Toledo, Ohio, to streamline production and improve efficiency.    More

Image

Clariant extends reach into Asia with acquisition

September 29, 2014 9:54 am ET

Clariant International Ltd. is buying VitaPac (HK) Industrial Ltd., a Hong Kong-based company which produces desiccant packets for the healthcare...    More

Image

Global giant Foxconn to make, sell molding machines

September 26, 2014 2:48 pm ET

For years, Taiwan's Foxconn Technology Group has been the world's largest contract manufacturer for electronics, with more than 1 million employees...    More

Image

Nypro Healthcare continues to grow following Jabil acquisition

September 26, 2014 1:59 pm ET

Nypro Healthcare's newest medical device manufacturing facility offers 200,000 square feet of carefully configured Class 8 clean room molding and...    More

Image

England's Essentra buying Abric Berhad

September 26, 2014 11:31 am ET

Packaging firm Essentra plc has announced the planned acquisition of Abric Berhad, a Kuala Lumpur-based manufacturer of security sealing products.    More

Market Reports

Plastics in Mexico - State of the Industry Report

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

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

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

More Events