Techne Corporation (TECH) has forged a three-year agreement with Fisher Scientific to distribute its R&D Systems – Tocris, and Boston Biochem brand catalog products through the latter’s customer channel in the U.S and Canada.
Techne is primarily engaged in the development, manufacture and sale of biotechnology products and hematology calibrators and controls, through its subsidiaries – Research and Diagnostic Systems, Inc. (R&D Systems) of Minneapolis, and R&D Systems Europe, Ltd. (R&D Europe). Tocris, as one of the subsidiaries of R&D Europe, involved in the supply of chemical reagents for non-clinical life science research, while Boston Biochem, which is a part of the R&D Systems of Minneapolis, is a leading developer and manufacturer of ubiquitin-related research products.
Fisher Scientific is a recognized customer channel brand within Thermo Fisher Scientific, Inc. (TMO), occupying a dominant position in the life sciences market.
With the deal in place, Techne’s products will be available to a large number of academic, governmental and industrial customers, like those in the pharmaceutical, biotechnology and CRO (Contract Research Organizations) segments. The deal also promises to widen the scope and range of high-quality proteins, antibodies and immunoassays currently being offered under the Fisher Scientific brand. Such widespread coverage is likely to boost revenues for both the companies going forward.
Techne plans to capitalize on the extensive sales network and the expertise of the highly trained life science application specialists of Thermo Fisher Scientific. Such strong infrastructure will lend maximum support to Techne‘s products in the U.S and Canadian markets.
Moreover, the deal will also enable Techne to access the popular marketing programs of Fisher Scientific such as the innovative and modern e-commerce solutions. These factors are likely to help Techne carve out a well-established position within the Fisher Scientific catalog.
The collaboration should also benefit Techne with a new chain of customers through the extensive Fisher Scientific channel, thereby increasing revenue potential for the company. At the same time, Techne will also render technical support to its existing customers and cater to their needs and wants.
Despite the slowdown in the U.S. markets, various medical device companies continue to focus and seek opportunities of growth in this market. Such efforts are believed to bring in some momentum in the long term, driving revenues for the companies.
Currently, Techne carries a Zacks Rank #3 (Hold).
Investors interested in the medical instruments industry can look at better-ranked stocks like Natus Medical Inc. (BABY) with a Zacks Rank #1 (Strong Buy) and Cepheid (CPHD) with a Zacks Rank #2 (Buy).
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