Modern Customized Lab with Strong Intellectual Properties to Become a Leader in this Fast-Growing Field
The Lab was founded 15 years ago and was a very early adopter of offering Next Gen Sequencing (NGS) services for exploiting RNA, mRNA and microRNA arrays for Biomarkers for detection and treatment of diseases. The Company specialized in extraction and analysis of RNA and proteins from a wide variety of clinical and biological research samples, using technologies including microarrays, sequencing, Luminex xMAP, real-time PCR platforms, bioinformatic processing, and statistical analysis of data sets. Many scientists view RNA / mRNA technology as the future of coming up rapidly with new drugs / vaccines and Diagnostic products. The recent success of Moderna and BioNTech/Pfizer’s COVID-19 vaccine developed in record time bears that out.
The Company has a modern, custom-built laboratory space, which has everything one needs to grow the business and can comfortably accommodate a staff of 20-30 people. In 2017, the company was doing about $2.2M in revenue (its peak revenue since it started). However, the Company experienced setbacks starting in mid-2017, due to staff turn-over including its key salesperson. The owner tried to hire new people, but he was not successful in turning things around, and in early 2020, when pandemic hit, he decided to lay-off most of the staff to stem potentially large losses. Realizing that his strengths and passion are in scientific sales, research development, and project management, he decided to sell the Lab to a qualified buyer who can bring in complementary abilities in operations management, human resources, marketing, and corporate development and together with the buyer, he can help build a fast-growing business that this Lab is capable of.
Assets of The Company – Invaluable IPs
The Lab has invested about $900K in Lab Equipment, Build-out and facility improvement since 2005. However, the most important asset for the buyer are the intellectual properties (IPs) of the Company and the knowledge and experience of the owner. Its IPs include software consisting of 10 fully functional genomic data analysis pipelines, 6 other pipelines that are in advanced state of completion, 40 internally developed applications, 103 SOPs, and 105 current methods. This would take years of R&D work and millions of dollars in terms of time, scientist salaries, and equipment. And in addition, the buyer will also get the services of the seller, one of the early pioneers in the RNA and molecular technology who will ensure that the buyer gets full benefit of the IPs. To someone looking to get a running start in the exciting RNA-based technologies for diagnostics and treatment, this could be an ideal acquisition.
The owner feels best opportunities lie in working on developing novel molecular diagnostic assays for clients within the umbrella of the burgeoning markets of certain chronic conditions and Companion Diagnostics. The Companion Diagnostics market is estimated at USD 3.8 billion as of 2020 and is expected to grow at a 22.5% rate from 2020 to 2025 to a market size of 10.6 billion. The Seller has identified several opportunities within a sub-segment of this market with relatively small competition and the Lab has done significant work in these areas to give buyer a jump-start in coming up with certain Lab-Developed tests that can be run in the buyer’s Lab. This has a potential of generating millions of dollars in revenue.
The Lab in 2020 did about $766K in revenue and was slightly cash flow positive because the owner took a very small salary and had to let go most of the staff. The business has rich Intellectual Properties and with right management, it is ready to take off. One of the senior Scientist that had worked at the Lab is eager to rejoin the lab once it is sold. The diagnostics and biopharma field using the technologies of the Company is exploding, thereby offering fast growth opportunities to the buyer who can use the Company’s expertise to dramatically shorten the time to market. We are inviting offers for this business for strategic buyers who can see value in what the Company is offering.