Pharma BD Deal Intelligence

Inverness Medical Innovations Inc. / Binax Inc.

2004 · Acquisition/Merger · Complete

A modest bolt-on: Inverness paid about 1.42 million shares plus $8.8 million cash for Binax, a respiratory diagnostics player with roughly $20.0 million in 2004 sales—cheap by the numbers, but the source data itself flags the announcement and merger-agreement dates don't line up.

Outcome grade pending — assessed 5 years post-close.

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The coverage arc

Feb 10, 2005 BioWorld — Inverness to acquire Binax Bullish

We expect to benefit from Binax's established reputation in respiratory diagnostics, and we are excited about the potential new product development…

Mar 31, 2005 Inverness Medical Innovations — Form 8-K (Binax merger close) Neutral

On March 31, 2005, Inverness Medical Innovations completed its acquisition of Binax pursuant to an Agreement and Plan of Merger dated February 8,…

Jan 01, 2024 Wikipedia — Alere (acquisition list and Abbott close) Neutral

Abbott closed the Alere acquisition at the reduced price of $5.3 billion on October 3, 2017.

Source summaries from our enrichment pipeline; follow links for originals.

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1.4M Inverness shares + $8.8M cash; rapid diagnostics for infectious disease

Key facts

Disease & market context

Rapid infectious-disease diagnostics (respiratory, malaria, strep)

$20M Binax FY2004 revenue (USD mm)

Disease Overview

Lateral-flow immunochromatographic assays (rapid antigen tests) detect pathogen-specific antigens at the point of care in 15 minutes or less, without instrumentation. Binax NOW had cleared a panel covering Streptococcus pneumoniae urinary antigen, Legionella pneumophila serogroup 1 urinary antigen, malaria (P. falciparum / pan-malarial), influenza A/B, RSV, and group A strep — a respiratory-anchored portfolio targeting the ED, urgent care, and physician-office market.

Competitive Landscape

Inverness Medical Innovations (Waltham, MA) signed the merger agreement to acquire Portland, Maine-based Binax on February 8, 2005 — entered in the deal database under the original 2004-12-20 negotiation date — and closed March 31, 2005. Consideration totaled approximately 1.42 million IMI shares plus ~$8.6-8.8 million cash at closing, with up to $11 million additional contingent on five-year product development milestones [SEC 8-K via search; bioworld.com]. Binax CEO Roger Piasio said: 'By leveraging our combined resources and expertise, we expect to be able to improve our ability to deliver significant and innovative new products to point-of-care diagnostic markets' [labmedica.com]. Competing rapid-diagnostic platforms in 2004-2005 included Quidel (QuickVue), BD (Directigen), Meridian Bioscience, and Inverness's own Clearview/Determine lines. Forward-looking: BinaxNOW became the cornerstone of Inverness/Alere's professional diagnostics segment; after Alere's $5.3B sale to Abbott (closed October 3, 2017), the BinaxNOW lateral-flow chassis was repurposed for the BinaxNOW COVID-19 Ag Card, which received FDA EUA August 26, 2020 and shipped tens of millions of units during the pandemic — arguably the highest-profile rapid-diagnostic product of the 2020s [Wikipedia: Alere].

Related deals — scored

DealYearValueOutcome
Inverness Medical Innovations Inc. / Binax Inc. (this deal)2004
Inverness Medical Innovations Inc. / Abbott Laboratories Rapid Diagnostics (pregnancy / drug-of-abuse lines)2003$92M71
Inverness Medical Innovations Inc. / Innogenetics Diagnostica y Terapeutica S.A. (IDT)2005$19M45
Inverness Medical Innovations Inc. / Ischemia Technologies Inc.2004$22M33
Inverness Medical Innovations Inc. / Thermo BioStar, Inc.2005$52M31
UCB SA / Celltech Group plc2004$2.7B92
Yamanouchi Pharmaceutical / Fujisawa Pharmaceutical Co. Ltd.2004$7.6B84

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