Molecular Diagnostics M&A: Dormant But Not Done

Recent reports suggesting that venture investment in molecular diagnostics is down and that overall deal activity is depressed as well may have rattled investors. But this topline assessment of the industry overlooks the underlying trends at play, especially the need to integrate recent acquisitions – many of which were by new buyers demanding different needs and outcomes from their technology acquisitions – before the next shopping spree. The current crop of companies must mature prior to the commencement of additional M&A activity. Historical data suggest this could occur starting in the 2014-2015 timeframe.

It used to be that molecular diagnostics tools companies had only limited funding sources and exits. A relatively small number...