Diagnostic test kits maker Meridian Bioscience (VIVO) has established a new direct distribution network in Australia through its fully-owned subsidiary Bioline Australia. Under the new arrangement, the company’s diagnostic products will be sold in that country through its direct sales force. Meridian noted that it is switching the sales model for these products from distributors-based to direct sales through Bioline Australia.
Bioline Australia is a leading developer and distributor of molecular biology reagents for the life science, pharmaceutical and commercial diagnostic markets. The integration of Bioline Australia’s polymerase chain reaction (“PCR”) reagents with Meridian’s diagnostic tests for infectious diseases (including the new molecular test illumigene) is expected to offer a unique, broad product range to customers in these markets. Moreover, distribution of both product lines through a single source will enhance the opportunities to attract new customers.
Meridian specializes in developing diagnostic test kits for multiple serious and infectious diseases. The company’s diagnostics business faces strong competition from Abbott Laboratories (ABT), Becton, Dickinson and Company (BDX), Thermo Fisher (TMO) and Siemens (SI).
The Cincinnati-based company’s $23.3 million acquisition of London-based molecular biology reagents maker Bioline in July 2010 has unlocked opportunities for growth through expanded product range and geographic expansion.
Meridian’s revenues surged roughly 18% year over year in third-quarter fiscal 2011 (ended June 30), buoyed by healthy performance of its core U.S. Diagnostics business. Sales from its Life Science segment propelled 47.5% with the Bioline acquisition strongly contributing to the growth. The company’s C. difficile test illumigene is gaining strong traction having achieved roughly 500 placements globally till date.
Meridian hopes sales in fiscal 2012 will be boosted by illumigene and new products. Illumigene, which represents Meridian’s response to growing competition, is expected to be its principal growth engine in the years ahead.
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