[Reporter's view] The 2nd Danaher, SD BioSensor

Danaher is considered one of the leading companies in the global diagnostic market along with Roche and Abbott.

 

Danaher's growth engine, born in 1984, lies in aggressive M&A.

 

So far, it has grown in size with more than 50 M&As.

 

Rather than developing its own technology when entering a new market, it mainly used the method of acquiring promising companies and settling in the market with active management participation.

 

It has grown into a comprehensive medical device company by acquiring companies in various fields such as molecular diagnostic company Cepheid, tooth implant manufacturing company Nobel Biocare, and diagnostic reagent company Beckman Coulter.

 

Danaher didn't just focus on increasing the size of the company.

 

All of Danaher's M&A activities are based on the company's business philosophy, DBS (Danaher Business System).

 

Danaher established its own business system DBS in accordance with Japan's Kaizen principle, which means 'continuous improvement'.

 

DBS measures companies or businesses to be acquired according to four principles: people, planning, process, and performance, and prepares and applies strategic plans after the acquisition.

 

By successfully implementing this DBS system, Danaher was able to achieve overwhelming growth compared to its competitors.

 

Companies that want to become the second Danaher have also appeared in Korea.

 

It is the SD BioSensor in the domestic M&A market recently.

 

After steadily focusing on diagnostic research, sales rose vertically due to COVID-19, recording 3 trillion won last year.

 

Operating profit also reached 1.364 trillion won.

 

As of the end of the first quarter, SD BioSensor's cash and cashable assets were 1.1636 trillion won.

 

Since then, SD biosensors have launched aggressive M&As.

 

Following the purchase of Brazilian diagnostic device distributor Eco Diagnostica for 47 billion won, it acquired Italian Relab and German Bestbion for 61.9 billion won and 16.1 billion won, respectively.

 

And on the 8th, it also decided to acquire Meridian Bioscience, a U.S.

 

diagnostic device company.

 

It is the largest deal in the domestic pharmaceutical industry, with a total acquisition volume of 2 trillion won.

 

Meridian Bioscience is considered a diagnostic device company that is strong in diagnosing digestive systems.

 

SD BioSensor announced additional mergers and acquisitions this year.

 

It showed its ambition to secure distribution networks in major global countries.

 

Chairman Cho Young-sik of SD BioSensor announced such a plan and said, "We will increase various diagnostic device products such as STANDARD M10 and grow it into a global company that can compete with Danaher." This is not just a meaning of growing size by acquiring companies, but a willingness to establish a business philosophy to pave the way for growth as a global company.

 

We hope that the domestic pharmaceutical bio industry will also establish its own philosophy and show that it is willing to invest.

 

It is hoped that a domestic pharmaceutical bio environment will be established to strengthen internal stability, increase appearance, and compete globally.