PHC Holdings Completes $1.14 Billion Acquisition of Thermo Fisher's Anatomical Pathology Business to Expand Precision Oncology Diagnostics

On June 28, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that PHC Holdings (PHCHD) announced the completion of its $1.14 billion acquisition of Epredia, the anatomic pathology business unit of Thermo Fisher Scientific. Through this acquisition, PHCHD will expand its diagnostic services in oncology to support the company’s growth.

Epredia will become an independent company, continuing to operate its anatomical pathology business. As a global leader in comprehensive solutions for the anatomical pathology field, the company currently has manufacturing facilities in the United States, the United Kingdom, Germany, Switzerland, and China, with a total workforce of approximately 1,200 employees. Epredia owns major brands including Erie, Menzel, Microm, Shandon, and Richard Allan, offering products such as microscope slides, instruments, and consumables.

PHCHD, established in 2014 and headquartered in Tokyo, Japan, is a global healthcare company with products and services available in more than 125 countries. The company focuses on providing products and services in the fields of diabetes care, diagnostics, life sciences, and medical IT. Through its subsidiaries, PHC Corporation and Ascensia Diabetes Care Holdings AG, it develops, manufactures, and sells in vitro diagnostic equipment and medical support devices.

PHCHD provides biological diagnostic equipment to individual households and medical institutions, including blood glucose monitoring systems, lactate monitoring systems, lancet systems, and electric growth hormone injectors. Its flagship products include medical receipt computers and electronic medical record (EMR) systems within its healthcare IT business. In fiscal year 2018, PHCHD’s consolidated net sales amounted to JPY 186.8 billion (approximately USD 1.732 billion).

Thermo Fisher Scientific Inc. is a global leader in the field of scientific services, with approximately 50,000 employees across 50 countries. The company’s primary customers include pharmaceutical and biotechnology companies, hospitals and clinical diagnostic laboratories, universities, research institutes, government agencies, as well as manufacturers of environmental and industrial process control equipment. Leveraging its four premier brands—Thermo Scientific, Life Technologies, Fisher Scientific, and Unity Lab Services—Thermo Fisher Scientific helps customers address various challenges in analytical chemistry by providing comprehensive laboratory solutions that encompass high-end analytical instruments, laboratory equipment, software, services, consumables, and reagents.

Michael Kloss, President and Chief Executive Officer of PHCHD, stated, “Epredia consistently delivers high-quality products and solutions, achieving excellence in precision cancer diagnostics. We believe that joining the PHCHD Group will further enhance Epredia’s business growth.”

James Post, President of Epredia, commented, “We are delighted to join the PHCHD Group and continue serving the anatomical pathology market as Epredia. While we have adopted a new identity, our mission—to advance cancer diagnosis worldwide and improve the lives of cancer patients—remains unchanged.”

Michael explained, “This acquisition is highly significant for the PHCHD Group. We see substantial growth potential in Thermo Fisher Scientific Inc.’s anatomical pathology business, as well as opportunities for synergy with PHCHD’s existing operations. Driven by rising cancer incidence and new challenges posed to traditional diagnostics in emerging markets, global demand for cancer diagnosis is increasing. For the PHCHD Group, this acquisition represents an exciting step forward. We are committed to building a leading global healthcare company that improves people’s lives and contributes to societal health.”

(Compiled by Tang Lulu)