Zoetis Inc. is set to acquire Abaxis, a leader in the development, manufacture and marketing of diagnostic instruments for veterinary point-of-care services.
The acquisition is expected to enhance Zoetis’ presence in veterinary diagnostics, a category of the animal health industry with approximately 10% compound annual growth over the last three years.
A leader of diagnostic instruments and consumable discs, kits and cartridges to the animal health industry, Abaxis reported a revenue of $244.7mn for its fiscal year ended March 31, an increase of 8%, compared with its 2017 fiscal year.
Its VetScan portfolio of benchtop and handheld diagnostic instruments and consumables serves a large customer base of veterinary practices in North America and is poised for expansion in international markets.
“This acquisition brings Zoetis a proven, competitive diagnostic platform for growth that we can help to accelerate in the US and worldwide with our global scale and direct customer relationships in approximately 45 countries,” said Juan Ramón Alaix, Chief Executive Officer of Zoetis.
“Together, we can bring more veterinarian customers a broader range of products that fit into our comprehensive solutions and innovations, from prediction and early detection of disease in animals to prevention and treatment.”
“We recently invested in expanding operations in Europe, Latin America, and the Asia Pacific Region, with 20% of revenue in fiscal year 2018 coming from our international operations,” added Clint Severson, Chairman and Chief Executive Officer of Abaxis.
“Zoetis has the global presence and direct veterinary customer relationships to deliver greater value to more customers around the world and accelerate the growth of our international operations.”
Abaxis derived 83% ($201.9mn) of its annual revenue in fiscal year 2018 from diagnostic products and services for the veterinary market. Approximately 16% ($38.6mn) of the company’s revenues were generated by sales of its Piccolo portfolio of analysers and tests for the human medical market.
The veterinary diagnostics category is estimated to be more than $3 billion, with compound annual growth of 10% over the past three years.
Zoetis expects to complete the acquisition by the end of 2018.