Thermo Fisher Scientific (TMO) has entered into a strategic partnership with Seegene to accelerate its Diagnostics segment. In 1Q17, the segment growth saw of ~1%, though on an organic basis, the segment reported sales growth of ~2%.
Seegene is a South Korea-based global leader in the development of multiplex molecular diagnostics technologies.
Under the agreement, Seegene will file for FDA (US Food Drug and Administration) approval for its Allplex Diagnostic Assay portfolio, while TMO will file for FDA clearance for running Seegene’s assays on its QuantStudio 5 Real-Time PCR (polymerase chain reaction) system.
Allplex has already witnessed strong growth in Europe. TMO expects to submit the application to the FDA by the end of 2018.
According to Seegene’s CEO (chief executing officer), Dr. Jong-Yoon Chun, “The US is the world’s largest MDx market. Well versed in advanced detection technologies, it also has the strongest customer demands. The synergistic combination of Thermo Fisher’s newest instrument and Seegene’s powerful multiplex PCR chemistry technologies will enable us to gain U.S. market share by offering advanced detection methods to more physicians and patients.”
According to Kim Kelderman, TMO’s vice president and general manager of Genetic Analysis, “We are proud to collaborate with Seegene as we move forward to seek FDA clearance for our respective platforms in parallel.We are committed to working with global partners who share our vision of driving better health outcomes.”
Major competitors in the diagnostics space include Becton, Dickinson (BDX), Illumina (ILMN), and Abbott Laboratories (ABT). To gain exposure to Thermo Fisher Scientific without investing directly in the company, you can invest in the iShares Russell 1000 Growth ETF (IWF), which has an allocation of ~0.26% of Thermo Fisher Scientific.
Continue to the next part for a key look at the company’s plans to enter the clinical mass spectrometry business.