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PerkinElmer buys Chinese test developer for $38M

WALTHAM, Mass. (AP) -- Health and industrial sciences company PerkinElmer Inc. said Monday it acquired Haoyuan Biotech Co., a Chinese company that makes diagnostic tests for infectious diseases.

PerkinElmer said it agreed to pay about $38 million for the deal, and it could make additional payments based on sales of Haoyuan Biotech' products. The company is is based in Shanghai and it has four approved tests: two that screen for hepatitis B and C, one that screens for hepatitis B and C and HIV, and one that tests for gonorrhea and chlamydia.

PerkinElmer said that in China, the demand for blood is growing 15 percent a year, and the government has mandated screening of donated blood for infectious diseases. The government will also fund that testing. It said the deal should add to its adjusted income starting in 2014.

Shares of PerkinElmer lost 25 cents to $30.46 Monday.