Sonic Healthcare buys stake in microbiome company Microba Life Sciences

Sonic Healthcare, an Australian medical diagnostics provider, will acquire a 19.99% interest in a precision microbiome company Microba Life Sciences for AUD 17.8 million ($11.9 million) to establish a commercial partnership.

Based in Australia, Microba Life Sciences delivers gut microbiome testing services to researchers, clinicians, and consumers across the globe.

The transaction is expected to help Sonic Healthcare and its subsidiaries to distribute Microba Life Sciences’ microbiome testing technology to its customers including general practitioners and specialists in the US, Australia, New Zealand, Switzerland, Belgium, Germany, and the UK for an initial period of one year with an option of further extension.

Dr Luke Reid — Microba Life Sciences CEO said: “Sonic is globally respected for its leadership in delivering trusted medical diagnostic services, and our partnership deeply aligns the interests of both companies to bring microbiome testing and therapeutics into the hands of clinicians and patients globally to improve standard of care.

“This strategic partnership with Sonic is set to accelerate international distribution of Microba’s microbiome testing into primary and specialist healthcare, and move our testing deeper into routine patient management.”

Sonic Healthcare is also planning to purchase an additional 5% stake in Microba Life Sciences for a further investment of AUD 7.5 million ($5 million), subject to shareholder approval.

Dr Colin Goldschmidt — Sonic Healthcare CEO said: “Our partnership with Microba exemplifies our commitment to invest in cutting edge developments in laboratory medicine.

“We see microbiome testing becoming a key part of pathology over coming years and are excited about the potential of this partnership and the opportunities that Microba’s technology will provide for Sonic’s global operations, our referring clinicians, and our patients.”

Sonic Healthcare Chief Medical Officer, Dr Stephen Fairy, will join Microba Life Sciences’ medical advisory board, which governs the latter’s commercial activities.

Employing over 41,000 people globally, Sonic Healthcare generated revenue of AUD 9.3 billion ($6.2 billion) in the financial year 2022.