LABSCO Reaches Agreement With Cepheid, A Manufacturer Partner For Existing Customer Relationships

LOUISVILLE, Ky., Oct. 1, 2014 /PRNewswire/ -- LABSCO, the leading specialty sales agent of innovative laboratory technologies and products to hospitals, physician office laboratories and alternate healthcare settings announces that, effective October 1, 2014, it has entered into a purchase agreement with Cepheid, a manufacturer partner for existing customer relationships. LABSCO has partnered with Cepheid since early 2012 to drive adoption of the GeneXpert® System in US hospitals with fewer than 150 beds and moderately complex physician offices, which increased Cepheid's installed base in these segments by approximately 250 customers.

"While LABSCO has been a valued partner for the last three years, the current scale of our commercial operations and our strategic focus on customers of all sizes has led us to conclude that now is the right time to step up our commitment to the smaller hospital market," said John Bishop, Cepheid's Chairman and Chief Executive Officer.

"We are focused on LABSCO's national reach with best in class technology, operational excellence, and unmatched technical sales expertise," says Hank Struik, chief executive officer of LABSCO. "Cepheid has been a valued partner for the last three years.  We continue to reinforce our commitment to excellence through an innovative product portfolio and focus on providing outstanding service to their customers."

The purchase price is $21 million for the acquisition of the customer relationships established by LABSCO, subject to certain upward and downward purchase price adjustments.  As part of the purchase agreement, Cepheid terminated its prior distribution agreement with LABSCO, which was otherwise scheduled to end on December 31, 2014.  The prior agreement also contained obligations regarding future sales to existing customers which have also been terminated as part of this transaction.

LABSCO and Cepheid are committed to ensuring a smooth transition for all of our customers without interruption of service.

About LABSCO

LABSCO is all about Delivering Superior Diagnostics to provide better outcomes for you and your patients. We focus on the 150 beds and less hospital labs and large POL practices. LABSCO offers a full line of laboratory products and works with their core customers on improving their clinical utility, operational efficiency and financial performance.  Our sales force are clinical laboratory experts who can offer unique and innovative solutions.  Learn more at www.LABSCO.com

About Frazier Healthcare

Founded in 1991, Frazier Healthcare is a leading provider of venture and growth buyout capital to emerging healthcare service and biopharma companies. With over $2 billion under management across seven funds, Frazier Healthcare has invested in more than 150 companies across the entire developmental spectrum. From venture investments to leveraged recapitalizations, Frazier Healthcare has established itself among entrepreneurs and seasoned executives as a preferred partner to help create and grow successful healthcare companies.

About Cepheid

Based in Sunnyvale, Calif., Cepheid CPHD is a leading molecular diagnostics company that is dedicated to improving healthcare by developing, manufacturing, and marketing accurate yet easy to use molecular systems and tests. By automating highly complex and time-consuming manual procedures, the company's solutions deliver a better way for institutions of any size to access the full power of molecular diagnostics. The company's systems enable rapid, sophisticated genetic testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. Through its strong molecular biology capabilities, the company is focusing on those applications where accurate, rapid, and actionable test results are needed most, such as managing infectious diseases and cancer. For more information, visit www.cepheid.com.

SOURCE LABSCO