F. Hoffmann-La Roche Ltd held the highest market share in In Vitro Diagnostics (Europe ) in 2020 with a share of 20.43%
Cepheid Inc occupies the second position in the market with a share of 11.29%
Top 5 players in the segment (F. Hoffmann-La Roche Ltd,Cepheid Inc,Abbott Laboratories,bioMerieux SA,Siemens Healthineers AG) hold a combined market share of 54.73%
IVD Companies Seek M&As to Avoid COVID Cliff
Top companies in the in vitro diagnostic (IVD) segment include F. Hoffmann-La Roche Ltd, Cepheid Inc, Abbott Laboratories, bioMerieux SA, Siemens Healthineers AG, the five companies together hold a majority stake in the IVD medical devices market.
In vitro diagnostic (IVD) companies are reporting significant revenue increases in Q1 2021 largely due to the continued sales of COVID-19 tests. Despite these strong Q1 reported revenues, COVID-19 testing sales are expected to quickly decline in H2 2021 as many countries around the world steadily roll out COVID-19 vaccines. Israel currently leads with the largest share of people who have received at least one dose of COVID-19 vaccine, followed by the UK, the US, Germany, France, and India, according to Our World in Data. This expected decline in COVID-19 testing is being referred to in the biotech industry as the “COVID cliff”. IVD companies are preparing for a reduction in sales revenues for COVID-19 tests that ranges anywhere from a steep drop-off to a more gradual downturn.
The COVID-19 pandemic dramatically altered the biotech landscape in 2020 with increases in funding to biotech, most of which was COVID-related, and many IVD companies benefited from this increased funding. An unprecedented number of IVD companies entered the COVID-19 testing space, developing and launching products in record time and numbers. Clinical trial volumes also saw a significant increase during 2020.
In preparation for the COVID-19 cliff, three major IVD companies turning to mergers and acquisitions (M&As) to shore up their diagnostic testing portfolios. In March, Roche signed a merger agreement with GenMark Diagnostics to access GenMark’s molecular diagnostic panel tests, which are designed to detect multiple pathogens from a single patient sample. Multiplex testing is currently gaining preference as it allows physicians to quickly diagnose a patient or rule out multiple common pathogens. In April, Hologic made a similar move by acquiring Mobidiag, which also offers multiplex testing. Hologic said the acquisition will enable the company to enter the acute care test market, which is projected to grow after the pandemic ends. Also in April, DiaSorin agreed to buy its US rival, Luminex, to boost its core molecular business and offset the expected drop in demand for COVID-19 tests in H2 2021. Roche, Hologic, and DiaSorin are all strong players in the COVID-19 testing space, and these M&As indicate that the market is shifting its attention to prepare for a return to a post-pandemic world.
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