Fisher Bulks Up in Biotech By Snaring Apogent: Growth in the “combination products” market thrusts medical device makers into acquisition mode

Major medical device makers increasingly are forming partnerships with or buying bioscience and biotech firms to secure higher-margin products and to capitalize on the convergence of medical devices, drugs, and biotechnology – a growing trend that presents lucrative opportunities for companies that can meld these complementary technologies to create new medical treatments. Fisher Scientific International Inc.’s recent acquisition of Apogent Technologies Inc. for $2.7 billion is the latest move by a devices company into the life science field. The Apogent buy gives Fisher, a maker and distributor of medical and scientific equipment, a larger presence in the growing bioscience field and boosts its line of proprietary products. Apogent makes laboratory and life science equipment, including pathology, microbiology, and immunodiagnostic products. Solid presence in bioscience Fisher’s life science operation grows to a $1 billion-plus business as a result of the deal. Apogent’s Remel division, which makes microbial identification systems, quality-control organisms, stains, reagents, culture media, and diagnostic test kits, meshes well with Oxoid Group Holdings Ltd., a manufacturer of microbiological culture media and other diagnostic products that Fisher acquired for $330 million earlier this year. Also, Apogent’s drug discovery technology enhances Fisher’s life science product line. Heavy on acquisitions Founded in 1902, the company traditionally had been a provider of scientific gear. Over the years it has evolved into a leading supplier of laboratory, science education, safety, and life science products. Thirty-six acquisitions made since 1992 accelerated Fisher’s growth into a leading laboratory and research products provider with $3.6 billion in annual revenue. Looking to take advantage of the boom in drug and biotech R&D, Fisher has been making select acquisitions in the bioscience space in recent years. Last summer it acquired Sweden’s Perbio Science AB, a maker of biotech research supplies, in a $714 million deal. In February it shelled out $80 million for privately held Dharmacon Inc., which provides RNA and RNA interference research products. And in late 2002, it bought Copyright 2004 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com http://www.majournal.com