Pfizer to buy Synbiotics to expand animal business

CHICAGO (BestGrowthStock) – Pfizer Animal Health, a unit of Pfizer Inc (PFE.N: ), on Wednesday said it will buy Synbiotics Corp (SYNB.PK: ) in a bid to expand its veterinary services into diagnostics.

Synbiotics, a largely privately held manufacturer of immunodiagnostic tests for companion and food production animals, estimated its common shareholders will receive about 30.6 cents per share in cash.

The deal is expected to close later this week.

Veterinary immunodiagnostics — a methodology using antigen-antibody reaction to detect viruses or bacteria in animals — is growing at an annual rate of 8 percent, twice the rate of the animal health industry as a whole, Pfizer noted.

The global immunodiagnostics market is valued at $735 million.

“The animal health business is mirroring the human health business. There’s a move to diversify and these companies need diagnostics to go with the drug. This deal is consistent with that,” said Les Funtleyder, a fund manager at Miller Tabak & Co.

Shares in Pfizer were down 2 cents to $17.57 in midday New York Stock Exchange trade.

(Reporting by Debra Sherman)

Pfizer to buy Synbiotics to expand animal business