Tellgen to Acquire 82% Stake in Kanglu Bio, Strengthening Presence in Molecular Pathology
In a strategic move to deepen its presence in molecular pathology and oncology diagnostics, Shanghai-based IVD company Tellgen has announced a phased acquisition of Wuhan Kanglu Bio, a high-tech enterprise specializing in precision diagnostics for major diseases such as cancer and cardiovascular conditions. The total transaction value is estimated at RMB 328 million (approx. USD 45 million), with Tellgen set to acquire 82% of Kanglu’s equity by 2027.
The first phase involves a 72.86% stake acquisition for RMB 291 million, with the remaining 9.14% to be acquired upon meeting specific conditions in 2026 and 2027. Upon completion, Kanglu Bio will become a consolidated subsidiary of Tellgen, significantly enhancing its capabilities in molecular pathology, particularly in the FISH (Fluorescence In Situ Hybridization) and PCR segments.
Kanglu Bio is recognized as a leading player in the niche field of FISH diagnostics. It has developed proprietary technologies such as the FastProbe® platform, which enables rapid, automated, and high-sensitivity FISH testing. The company has secured nine Class III NMPA registrations and multiple CE certifications, with products covering applications in blood cancers, solid tumors, cervical and bladder cancers, among others. Its sales network spans over 40 countries and regions worldwide.
The acquisition will complement Tellgen’s existing platforms in flow cytometry, chemiluminescence, and PCR, enabling a fully integrated early screening and companion diagnostics solution. With products already adopted by over 600 tertiary hospitals, the synergy between the two companies is expected to accelerate Tellgen’s market penetration and revenue growth in both domestic and international markets.
As part of the deal, Kanglu Bio has committed to a cumulative net profit target of no less than RMB 91.5 million over 2025–2027 and a minimum annual R&D investment of 10% of its revenue. This financial performance is expected to contribute positively to Tellgen’s bottom line, provided the milestones are met.
According to Tellgen, the acquisition will be financed through a combination of internal funds and M&A loans, with payment spread across the deal timeline to minimize short-term impact on cash flow. The company views this transaction as a timely entry into the “molecular pathology + intelligent instrumentation” segment, aligning with industry trends toward high-precision, service-driven diagnostics.
By combining Kanglu’s technical leadership in FISH with Tellgen’s broader diagnostic portfolio, the company is positioning itself to become a key player in the next-generation cancer diagnostics market—both in China and globally.
