Swedish firm acquires majority stake in Cypriot biotech company

International healthcare and diagnostic services company Medicover has acquired a controlling stake in Cypriot biotechnology NIPD Genetics, according to a statement released by the two companies earlier this month.

“This is an incredible milestone for NIPD Genetics as the strategic fit with Medicover will help bolster research and development and the commercialization of advanced innovative genetic testing solutions for the prognosis, prevention and better clinical management and therapy of genetic diseases,” NIPD Genetics said in a statement.

Medicover, which previously had an 18.9 per cent stake in NIPD Genetics, has reached an agreement to acquire shares from existing shareholders, which will ultimately see it upping its stake to 87.2 per cent.

“The transaction is subject to customary merger control approvals and closing is expected in Q1 2022,” the company said.

The purchase price agreed for the 68.3 per cent stake that Medicover is acquiring is €44 million with no debt being assumed to fund the transaction, suggesting a total value for the enterprise of €65 million.

“The acquisition will be funded with current committed debt facilities and consolidated when regulatory approval is granted,” the company said, adding that “the transaction value implies a high single-digit EBITDA multiple, excluding synergies”.

NIPD Genetics is one of Cyprus’ leading biotechnology companies, engaged in the fields of designing, developing, producing and providing in vitro genetic testing solutions.

The company’s proprietary technology platform and bioinformatics solutions span all types of genetic conditions in any part of the human genome, used in a number of applications, including routine DNA analysis to complex, proprietary non-invasive testing solutions such as NIPT (non-invasive prenatal testing) and liquid biopsies.

NIPD Genetics currently offers its services in thirty countries across Europe, Asia and Africa.

“For NIPD Genetics this is a step towards the next level of growth,” NIPD Genetics CEO Philippos Patsalis said.

“Our operational synergies will further enhance the development and commercialization of innovative genetic testing solutions while maintaining the high level of service our collaborators have come to expect from us,” Patsalis added.

Medicover, which was founded in Stockholm in 1995, operates a large number of ambulatory clinics, hospitals, specialty-care facilities, laboratories and blood-drawing points.

Medicover generated €998 million in revenue in 2020, with its biggest markets being Poland and Germany. It currently employs more than 32,000 staff members.

“NIPD Genetics’ proprietary technology platform, together with their experienced expert team and Medicover Genetics’ state-of-the-art diagnostics, will take us one step closer to becoming an international market leader in genetic diagnostics”, Medicover CEO Fredrik Ragmark said.