High-tech used lab equipment and other lab devices as well as office furniture, computers and copiers used at blood-testing company True Health Diagnostics LLC’s downtown Richmond operations will be auctioned off next week.
More than 1,500 items are to be sold during the two-day online-only auction. Organizers handling the sale of the equipment, furniture and other assets say the auction could fetch several million dollars.
“There has been a lot of interest,” said Bill Gardner, president and CEO of The Branford Group, a Connecticut-based company that specializes in the sale of biotech and medical equipment.
“Richmond has a lot of medical and biotech industries and has a number of companies and labs that have interest in some of the equipment,” Gardner said.
Next week’s online auction is the second major disposal of assets of True Health Diagnostics as the company has been winding down its business and selling off its assets after filing for bankruptcy protection in July.
Frisco, Texas-based True Health has been operating a laboratory at 737 N. Fifth St. in the Virginia Bio+Tech Park in downtown Richmond formerly run by the defunct Health Diagnostic Laboratory.
True Health sold some of its high-tech equipment and other assets for $8.5 million to lab-testing giant Quest Diagnostics through its Cleveland HeartLab subsidiary. That deal closed Oct. 1.
The Branford Group received approval from the U.S. Bankruptcy Court in Delaware to sell True Health’s remaining equipment at its Richmond lab.
Some of the equipment includes “some high-dollar items,” Gardner said.
For instance, eight Bruker NMR Magnet System machines each should sell for about $150,000, he said. The seven Sciex mass spectrometers each will probably sell for more than $100,000.
“This is a fantastic opportunity for companies in this industry to purchase excellent-quality used lab equipment and furniture,” Gardner said. “Any company in downtown Richmond would love the [office] furniture that is there.”
Bidding for the auction starts on Nov. 4. The auction of the lab equipment will close at 10 a.m. Nov. 6. The sale of the furniture, computers and other items will close at 10 a.m. Nov. 7. Prospective bidders can inspect and preview the items by appointment only on Nov. 5.
True Health filed for bankruptcy protection because it had been in a dispute with the federal government over Medicare reimbursements. The Centers for Medicare & Medicaid Services had suspended all Medicare payments to the company based on “credible allegations of fraud.”
True Health, which began in March 2014, bought most of the assets of Richmond-based Health Diagnostic Laboratory in 2015 in a bankruptcy court auction.
HDL, a fast-growing blood-testing company that once employed hundreds of people in Richmond, filed for Chapter 11 bankruptcy in June 2015 after settling a federal investigation into its physician reimbursement practices.
True Health leased about 100,000 square feet in the 250,000-square-foot building in the Virginia Bio+Tech Park — the same building that HDL had used.