business

Chinese Lab Operator Adicon Prepares $500 Million Sale

Chinese clinical laboratory operator Adicon is preparing a sale that could value the company at around $500 million, according to people familiar with the matter.

The Hangzhou-based company is working with an adviser to reach out to potential buyers including DNA sequencer BGI Genomics Co. and Guangzhou Kingmed Diagnostics Group Co., the people said. The sale has also drawn interest from private equity firms and a health-care arm of Fosun International Ltd., the people said, asking not to be identified because the discussions aren’t public.

Adicon, established in 2004, owns 20 lab facilities across China. The firm’s laboratories run diagnostic testing for more than 15,000 doctors and hospitals, as well as clinical trials for pharmaceutical firms, its website shows. The market for independent clinical laboratory services in China is set to keep growing at a rate of at least 30 percent in the next five years, according to an analysis by Research and Markets.

The process is at an early stage, and there’s no certainty the interested parties will proceed to submit offers, the people said.

Adicon didn’t immediately answer calls and emails seeking comment, while representatives for Kingmed and Fosun International declined to comment. Representatives for Fosun International’s publicly-traded drugmaking arm, Shanghai Fosun Pharmaceutical (Group) Co., and BGI Genomics said they couldn’t immediately comment.

— With assistance by Hui Li, Jing Yang De Morel, Crystal Tse, and Vinicy Chan

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