SSI Diagnostica acquires the American company CTK Biotech, which developed one of the worlds most precise Covid-19 antibody tests. The purchase expands our product portfolio and strengthens our global production and distribution network including access to new markets worldwide.
Read the press release in the following:
SSI Diagnostica, a Danish growth company specializing in diagnostics, buys American Covid-19 front-runner
SSI Diagnostica, which until 2016 was part of Statens Serum Institut, has in recent years been in a build-up phase, especially in international markets. To further accelerate its growth, SSI Diagnostica is now acquiring the American company CTK Biotech, which, among other things, has developed one of the world's most accurate COVID-19 antibody tests to date. With the acquisition, SSI Diagnostica strengthens its global production and distribution and gains access to a wide range of new markets around the world.
In connection with the merger, the company will also change CEO.
SSI Diagnostica has signed a purchase agreement with American CTK Biotech, which, among other things, develops and distributes diagnostic rapid tests. CTK Biotech is headquartered in San Diego and has production in Beijing and covers markets in Latin America, Asia and Africa, which means that SSI Diagnostica can now, together with CTK Biotech, reach patients and customers in most of the world.
“CTK Biotech are very skilled in developing new products, and their production equipment is simply excellent, with high efficiency and quality. Furthermore, our common, global distribution network will be very strong”, says the future CEO, Søren Skjold Mogensen, as some of the reasons for the acquisition.
He is supplemented by current CEO, Patrik Dahlen: “We have been planning for this acquisition for a long time. We have been looking for a partner who is great at diagnostic rapid tests in infectious diseases and has technology and competencies in monoclonal antibodies. We have found the perfect match in CTK Biotech. Our companies complement each other extremely well”, says Patrik Dahlen, who is now leaving his position as CEO and joining the company board.
CTK Biotech and SSI Diagnostica in combination:
• With the acquisition of CTK Biotech, a new diagnostics powerhouse is created with international weight and with a focus on diagnostic rapid tests within infectious diseases in a broad sense
• The new, combined company will have strong competencies in production, research & development and international distribution.
• An example of this is the current Covid-19 pandemic, where CTK Biotech has in record time developed and validated a blood-based Covid-19 IgG / IgM rapid test, which in 15 minutes can show whether a person's immune system is in the process of forming or has previously formed Covid-19 antibodies. This test has demonstrated high quality in scientific comparative studies and is among the best in the world in its class.
• Both companies have experienced great growth in the first half of 2020. Among other things, SSI Diagnostica has made great progress in the Chinese market, where tests for quality control of pneumonia vaccines are sold. In total, the new combined company expects to turn over more than DKK 600 million in 2020.
Change on the CEO position
In connection with the merger, the current CEO of SSI Diagnostica, Patrik Dahlen, will join the company board together with Dr. Catherine Chen, while Søren Skjold Mogensen takes over the role of CEO. Patrik Dahlen has been CEO of the company since 2016, when Statens Serum Institut sold it to Adelis Equity Partners. During the same period, Søren Skjold Mogensen has had the role of CCO (Chief Commercial Officer).
“It makes perfect sense to make this change in the CEO position now. Søren has extensive experience in internationalizing companies. The Board of Directors has full confidence that he in the new role, together with the rest of the organization, will continue the positive progress and growth”, says Chairman of the Board Stig Løkke Pedersen and continues: “I would like to thank Patrik for the great and very important work he has done. As a company, SSI Diagnostica has developed a lot in the last 4 years. We are happy that Patrik will still bring his vast
knowledge and experience to the table - now as a board member. He will still be an important contributor in our further work with the company”.
The equity firm behind it
In 2016 SSI Diagnostica was acquired by Adelis Equity Partners, which also comes with the financial muscle in connection with the acquisition of CTK Biotech. Following the change of ownership from Statens Serum Institut to Adelis Equity Partners in 2016, a number of investments have been made within the research & development areas, the commercial activities and in production facilities and equipment. The acquisition of CTK Biotech is an extension of these investments, and Adelis’ wish has been to give the new company the best opportunities for a real international breakthrough.
“We have been extremely satisfied with the development of SSI Diagnostica throughout our ownership period. There is currently a lot of life science know-how in the Nordics, and there are only a few international success stories in diagnostics; With the acquisition of CTK Biotech, we are immediately creating an international growth company with significantly greater potential, which can become its very own success story”, says Rasmus Molander, Partner, Adelis Equity Partners.
*The acquisition of CTK Biotech is conditional on legal closing and various regulatory approvals.
About SSI Diagnostica A/S
SSI Diagnostica A/S was independently established in 1998 and was until then part of Statens Serum Institut, which was founded in 1902. Today, SSI Diagnostica A/S is one of the leading Nordic production and distribution companies within in-vitro diagnostic products for microbiological laboratories. Internationally, diagnostic antisera and other diagnostic tests are devoted to e.g. quality control of pneumonia vaccines. Another of the company’s main products is Immuview - a rapid test for the diagnosis of pneumonia bacteria. Until 2016, SSI Diagnostica was part of Statens Serum Institut, which is globally recognized for its strong professionalism and competent research. In 2016, SSI Diagnostica was sold to Adelis Equity Partners.
About CTK Biotech
Over the past 20 years, CTK Biotech has developed and manufactured immunodiagnostic tools and tests. The diagnostic kits are manufactured at their own factory in Beijing (China). Research & development takes place primarily in San Diego (USA). The focus is on developing new rapid tests that can satisfy patient and customer
requirements for simple, fast, and accurate in-vitro diagnostics.
About Adelis Equity Partners
Adelis Equity Partners was established in 2012 with the goal of becoming a leading private equity fund for investments in medium-sized companies in the Nordics. Today, the company has 19 employees with offices in Stockholm and Copenhagen.
Adelis Equity Partners has EUR 1 billion under management and seeks through its investments to contribute with both financial resources and industrial competencies. To date, Adelis Equity Partners has completed 24 investments, leading to 60 further acquisitions.