In Vitro Diagnostics Acquisitions from Elsevier Business Intelligence

[Agilent] to pay $2.2bn for [Dako AS]

Tue, 01 May 2012 00:00:00 -0400

Expanding its presence in the diagnostics market, life sciences company [Agilent Technologies Inc.] will pay $2.2bn in cash to buy [Dako AS] (cancer testing) from private equity firm EQT Partners. A large part of Dako’s business is from the sale of immunohistochemistry (IHC) tests to pathology labs. The company also markets antibodies, molecular pathology products (including FISH kits and probes), reagents, instruments, and software to assist in the rapid and accurate tissue-based diagnosis of cancer. In addition, Dako works with drug companies to provide its {pharmacoDiagnostic} line of companion diagnostics; most notably is the {HercepTest} IHC assay that can identify overexpression of the HER2 protein in breast cancer cases to help determine a patient’s potential response to [Genentech]’s chemotherapy {Herceptin}. Dako also counts [AstraZeneca] and [BMS] as partners, along with [Amgen], which earlier this year signed two deals that call for Dako to use its {pharmDx} technology to create tests for two separate development-stage cancer drugs. Besides growing its oncology diagnostics portfolio, Agilent looks forward to a greater presence in the emerging markets served by Dako (20-25% of the acquired company’s revenues come from sales in Asia Pacific, Latin America, and Eastern Europe), and anticipates growth for its {SureFISH} fluorescent in situ hybridization assays, which will be integrated into some of Dako’s products. The deal is the largest in Agilent’s history, second to its $1.5bn purchase of scientific instruments developer Varian Inc. in 2009. Dako had 2010 sales of about $340mm. Prior to its 2007 purchase by EQT (for $1.22bn), the 46-year-old Danish firm had been owned by the Harboe family and [Novo Nordisk]. Following the acquisition, Dako will operate as an Agilent division for at least the next couple of years.

[Qiagen] buys obstetric assay company [AmniSure International]

Tue, 01 May 2012 00:00:00 -0400

[Qiagen NV] (diagnostics) has agreed to acquire privately held obstetric assay developer [AmniSure International LLC]. Although the companies have yet to disclose financial terms, Qiagen anticipates that the acquisition will contribute it $12mm for the rest of the year, with FYE December 2012 sales expected to reach $24mm. Post-merger AmniSure will become a wholly owned subsidiary of Qiagen. Formed in 2005, AmniSure markets the FDA-cleared {AmniSure} point-of-care assay to determine if fetal membranes have ruptured, which leads to the leaking of fluid from the amniotic sac, and could ultimately result in premature delivery and complications necessitating the use of neonatal intensive care units. The test--a one-step test strip to detect minute quantities of amniotic fluid in vaginal discharge--can be performed by ob/gyns in the ER, birthing center, or clinic. The transaction will enable Qiagen to make efficient use of its existing sales channels; the ob/gyns who are the primary prescribers of {AmniSure} also routinely screen their patients for HPV, which Qiagen’s {digene} test addresses.

[Biota Holdings], [Nabi Biopharmaceuticals] plan to merge and create public US-based company

Sun, 01 Apr 2012 00:00:00 -0400

Australian firm [Biota Holdings Ltd.] is planning to merge with fellow public vaccines developer [Nabi Biopharmaceuticals] (based in the US) to create a new Nasdaq-listed company, [Biota Pharmaceuticals Inc.], which will have headquarters in Rockville, MD. For each Biota share, stockholders will receive 0.67 Nabi shares. Following the reverse merger agreement, Biota Pharmaceuticals will have $110.6mm in cash ($54mm from Nabi). Biota Holdings will own 74% of the new entity while Nabi holds the remaining 26% stake. The merged company will be stocked with the royalty-generating products: Biota’s influenza drugs {Relenza} (zanamivir; partnered with [GlaxoSmithKline]) and its follow-on long-acting neuraminidase inhibitor {Inavir} (laninamivir; partnered with [Daiichi Sankyo]). The new entity will also have Biota’s preclinical programs for respiratory syncytial virus, hepatitis C, an antibiotic targeting gyrase, and a Phase II compound for human rhinovirus; plus Nabi's research-stage {EnteroVAX} enterococcus vaccine. Biota Pharmaceuticals also gets an interest in Nabi’s nicotine addiction vaccine {NicVAX}, which failed two Phase III trials and was the reason Nabi put itself up for sale last year. If Biota succeeds in bringing {NicVAX} to market or any products that incorporate the {NicVAX} technology, Nabi shareholders receive CVRs. Biota Holdings’ current CEO and CFO will retain their positions at the new firm, and the board will consist of six members of Biota (including the chairman) and two from Nabi.

[Hologic] to pay $3.75bn in cash for [Gen-Probe]

Sun, 01 Apr 2012 00:00:00 -0400

In a move to become the largest diagnostics company focused on women’s health, [Hologic Inc.] is acquiring all the outstanding shares of fellow public company [Gen-Probe Inc.] (molecular diagnostics) for $82.75 each in cash (a 22% premium), valuing the transaction at $3.75bn. Gen-Probe began pursuing buyers about a year ago and possible bidders were said to be [Thermo Fisher Scientific], [Life Technologies], and [Novartis]. Once the acquisition closes, Gen-Probe will become a wholly owned subsidiary of Hologic, which will keep its Bedford, Massachusetts headquarters but maintain a strong presence in San Diego where Gen-Probe was located. In addition, Gen-Probe’s senior management will be retained, with chairman and CEO Carl Hull overseeing the combined company’s diagnostics business. Gen-Probe offers the {Tigris} and {Panther} automated platforms; an array of sexually transmitted disease tests, including the {Aptima} line for chlamydia/gonorrhea, human papillomavirus, and trichomonas; and {Procleix} line of HIV, hepatitis C, hepatitis B, and West Nile virus blood screening diagnostics. These products will complement Hologic's offerings such as the {Cervista} cervical cancer test, {Tomo} breast cancer imaging platform, and {MyoSure} fibroid removal procedure. Hologic will benefit from Gen-Probe’s global presence and conduct business in over 150 countries worldwide. For 2011, Gen-Probe had revenues of $576.2mm and $50.1mm in earnings. The combined company, which will have a diversified portfolio in diagnostics, women’s imaging, and surgical devices, is expected to have projected annual pro forma revenue $2.4bn and a combined adjusted EBITDA of $822mm. Over the past five years, Hologic has strengthened its women’s health and diagnostics portfolio through its acquisitions of including Cytyc, Third Wave Technologies, BioLucent, [Sentinelle], Interlace Medical, and TCT.

[Abingdon Health] takes a 50.1% equity stake in [Molecular Vision Ltd.]

Thu, 01 Mar 2012 00:00:00 -0500

[Abingdon Health Ltd.] has purchased a 50.1% equity stake in fellow private diagnostics firm [Molecular Vision Ltd.] Molecular Vision spun off from [Imperial College London] in 2001 and has created {BioLED}, a device that can simultaneously run several assays for biomarkers on the same disposable lab-on-a-chip. The less-expensive point-of-care diagnostic is initially aimed at patients with cardiovascular disease and low kidney function. The acquisition was financed by Abingdon’s concurrent £3mm ($4.8mm) early-stage venture round. Imperial Innovations contributed £2mm to the financing and now owns 28.6% of Abingdon and has a 36.4% share of Molecular Vision. Abingdon’s founder and CEO, Chris Hand, PhD, is also interim CEO of Molecular Vision. Molecular Vision will fit in nicely with [Serascience], another POC diagnostics firm (focused on myeloma and other cancers) that Abingdon jointly owns with Bioscience Ventures. The current deal with Abingdon comes four years after [Acrongenomics] unsuccessfully attempted to acquire Molecular Vision; the two remain allies under a 2006 transaction and Acrongenomics has a 10.9% stake in the company.

[Grifols] acquires majority of Spanish therapeutics and diagnostics company [Araclon]

Thu, 01 Mar 2012 00:00:00 -0500

Through its Gri-Cel SA investment arm, plasma derivatives producer [Grifols SA] has acquired 51% of fellow Spanish company, privately held therapeutics and diagnostics firm [Araclon Biotech SL]. Araclon, a 2004 spin-off of [University of Zaragoza] neurodegenerative disease IP (research led by Manuel Sarasa, PhD, now the company’s CSO), is focusing primarily on Alzheimer’s. Its blood-based ELISA diagnostic screens for beta-amyloid peptides 40 and 42 and could eventually become a predictive test for people who don’t present with symptoms. The kits are in clinical trials for in vitro diagnostic use, but are already sold in research markets. On the therapeutics side, Araclon is developing a preclinical active immunotherapeutic vaccine for Alzheimer’s that targets the same beta-amyloid 40 and 42 peptides. Besides these projects, the company is also working on a preclinical Parkinson’s disease drug candidate in collaboration with the [Spanish National Research Council], and it may pursue additional research into vascular dementia, fibromyalgia, and multiple sclerosis. The current deal allows Grifols to expand its diagnostics business and enter the vaccines market. The transaction also complements the company’s therapeutic combination of plasma derivatives for AD. A plasmapheresis device (being developed by [Fenwal]) delivers albumin and intravenous immunoglobulin to mobilize and remove the beta-amyloid protein from the cerebrospinal fluid and to stabilize the disease. The candidate is expected to finish human testing in 2014. Araclon is the second company in which Grifols has taken a majority stake via Gri-Cel. Grifols also owns 60% of [Nanotherapix], which is developing gene therapeutics using an adenovirus vector platform.

[Abcam] pays $155mm for monoclonal antibody producer [Epitomics]

Thu, 01 Mar 2012 00:00:00 -0500

[Abcam PLC] has acquired fellow antibody research tools company, privately held [Epitomics Inc.], for $155mm. Half of the sum will be paid in cash, with the rest in the form of approximately 14.7mm Abcam shares (based on the pre-announcement ten-day average of £3.34 ($5.29)). Epitomics, which was founded in 2002 and has operations in the US, China, and Taiwan, specializes in the commercial supply of monoclonal antibodies sourced from rabbits via the patented {RabMAb}, the only hybridoma-based technology available to produce custom rabbit monoclonals. The company says that rabbit antibodies have higher specificity and affinity and demonstrate more diverse epitope recognition and better response than mouse MAbs. Epitomics also sells reagents, in vitro diagnostics for cancer, and contract research services. Its primary customers are biotech and pharmaceutical companies as well as academia. Epitomics previously developed biosimilar antibody therapeutics for oncology and immunology, but spun off this asset in 2010 to the start-up [Apexigen]. Upon closing the deal, Epitomics is estimated to have $15mm in net cash. As of FYE December 31, 2011, the company had unaudited revenues of $24.7mm, EBIDTA of $7.6mm, profit before tax of $6.8mm, and $30mm in net assets. The Epitomics acquisition marks Abcam’s entry into the in vitro diagnostics market and builds on its core high-quality primary antibodies business, which services the life science industry. The company is also boosting its presence in other research products such as proteins, peptides, immunoassays, and kits. Last year it bought [MitoSciences], a mitochondrial research tools company that brought assay development capabilities.

[Trinity Biotech] buys [Fiomi Diagnostics] for $13.1mm in cash, stock, and earn-outs

Thu, 01 Mar 2012 00:00:00 -0500

[Trinity Biotech PLC] (point-of-care and clinical laboratory diagnostics) has acquired [Fiomi Diagnostics AB] for $13.1mm, with $9.7mm up front ($5.6mm will be in cash and $4.1mm in 408k Trinity Biotech ADRs) and $3.4mm in earn-outs (for getting the CE Mark, FDA submission, and FDA approval of a troponin I assay). Fiomi Diagnostics was formed in 2010 by the founders of [Amic AB] (now part of [Johnson & Johnson]). Fiomi is using the rights it secured in January 2011 to Amic's technology (for cardiac, infectious disease, and other fields) to develop an advanced-stage panel of POC cardiac markers. Since it was established, Fiomi has spent over $60mm to work on the diagnostic, which involves a micro-pillar flow technique enabling sensitive, reproducible, quantitative, and multiplexed results that are more accurate than current POC tests. Fiomi’s first test is for troponin I, a marker for acute cardiac infarction; the CE Mark is expected in the latter half of 2013 and submission for US approval the following year. Trinity will expand Fiomi’s Uppsala operations to complete the development, and it will also use Fiomi’s large R&D group in Uppsala to focus on assays for BNP and a multiplex cardiac panel in order to complete a group of cardiac tests by December 2014. Trinity Biotech will use Fiomi's technology to create infectious disease tests for chlamydia, gonorrhea, and influenza A and B, and RSV. Trinity last bought a diagnostics company in early 2011 when it picked up syphilis testing firm Phoenix Biotech for $2.5mm.

[Alere] buys [eScreen] for $270mm in cash, up to $70mm in earn-outs

Wed, 01 Feb 2012 00:00:00 -0500

Point-of-care diagnostics company [Alere Inc.] has acquired private drugs-of-abuse screening firm [eScreen Inc.] for $270mm in cash up front, plus another $70mm in earn-outs. EScreen, which reported 2011 revenues of $120mm, was formed in 1998 to provide drugs-of-abuse screening and automated hiring services. In 2010, eScreen merged with Pembrooke Occupational Health, another employment screening company; the deal brought eScreen new onsite drug testing and medical services, and a file management system. It now uses the {eReader}, an automated FDA-cleared reader to collect, manage, and report millions of regulated- and non-regulated urine drug screens for the health care and corporate sectors. EScreen also offers employee-related health testing products and services, including the {eScreen123} paperless chain-of-custody form, {MyeScreen} web-based reporting software, and {Health-eScreen} electronic application to schedule and process reports. Unlike competitors, eScreen is the only instrumented point-of-collection test that can produce negative results in about 15 minutes. The transaction will enable Alere to strengthen its hold of the global toxicology market, and also offer a larger range of diagnostics to US and international employers. Alere’s last acquisitions closed in November 2011, at which time it picked up home diabetes testing supplier [Arriva Medical] for $85mm, and paid about $356mm for clinical lab and POC firm [Axis-Shield PLC].

PE firm Linden Capital Partners buys [SeraCare Life Sciences] for $80.8mm

Wed, 01 Feb 2012 00:00:00 -0500

After months of negotiations, an affiliate of private equity outfit Linden Capital Partners has acquired publicly held [SeraCare Life Sciences Inc.] (diagnostic controls, plasma-derived reagents, and molecular biomarkers). Although the per-share price discussions with Linden ranged from $3.75-4.15, the PE firm agreed to pay $4 in cash (a 21% premium) for each outstanding SeraCare share, valuing the deal at $80.8mm. Since a 2006 bankruptcy filing, the company has been exploring strategic options to maximize stockholder value. In fact, SeraCare was approached by numerous suitors, including an unsolicited June 2011 bid from MSMB Capital, which proposed $4.25 per share (at the time a 26% premium), or approximately $82mm. Although this offer and several others were higher than Linden’s, the SeraCare board ultimately rejected these competing proposals because of the possibility that the company would be sold off in parts, or due to concerns as to whether or not the transaction could be successfully completed due to vague financing commitments. Since emerging from Chapter 11 in 2007, SeraCare has sold off noncore business lines and been focused on expanding product development. Most recently, it announced the launch of five new infectious disease panels in parvovirus B19, HIV, HBV, HAV, and cytomegalovirus, plus the extension of its {AccuRun} portfolio, adding controls that monitor performance and ensure the accuracy of molecular detection tests for chlamydia and gonorrhea. Following the transaction close, SeraCare--which had 2011 revenues of $43.5mm, has $19.5mm in cash (as of February 10th), and almost no debt--will become a private company, wholly owned by a Linden affiliate.

[Signal Genetics] acquires [ChipDx]

Wed, 01 Feb 2012 00:00:00 -0500

Predictive testing company [Signal Genetics LLC] has acquired privately held [ChipDX LLC] (molecular diagnostics for cancer) for an undisclosed sum. Included in the acquisition are all of ChipDX’s patents, IP, and knowledge behind a web-based interface for test interpretation by physicians, as well as its pipeline. ChipDX has in development three oncology prognostics. {BreastGeneDX} determines the intrinsic molecular subtype and the ten-year risk of disease recurrence in patients with breast cancer; {ColonGeneDX} predicts survival and recurrence risk in cases of stage 2 or stage 3 colon cancer; and {LungGeneDX} will classify early-stage adenocarcinoma patients as low- or high-risk for recurrence, and will also predict response to treatment with cisplatin/vinorelbine. Signal Genetics looks forward to using its newly established sales team to market the products once launched, and believes that ChipDX’s science is highly complementary to its own products. Earlier this year, Signal Genetics launched {MyPRS Plus}, the next generation of its {Myeloma Prognostic Risk Signature} test for multiple myeloma. The company also sells {Previstage}, a colorectal cancer staging test that it has worldwide rights to through a 2011 deal with [DiagnoCure]. Following the acquisition by Signal, ChipDX’s founder and CEO Ryan VanLaar, PhD, became head of bioinformatics at the combined entity.

[Sigma-Aldrich] pays $350mm for testing services company [BioReliance]

Sun, 01 Jan 2012 00:00:00 -0500

Private equity firm Avista Capital Partners is selling [BioReliance Corp.], a private CRO, to [Sigma-Aldrich Corp.] (life science product distributor) for $350mm in cash. BioReliance will become part of the [Sigma-Aldrich Fine Chemicals] (SAFC) subsidiary, which supplies large-scale organic chemicals and biochemicals for biopharma, diagnostic, industrial, and electronics development and production. BioReliance started operations in 1947 as Microbiological Associates (MA), which eventually became a division of Whittaker Corp. Whittaker sold MA to Daryl Laboratories in 1984, and that combined firm was renamed BioReliance in 1997, the same year it completed an IPO. In 2003, Invitrogen (now [Life Technologies]) acquired BioReliance for $500mm, only to divest the company four years later to Avista Capital Partners for less than half of what it paid, $210mm. BioReliance offers quality assurance and quality control testing services to biopharma, diagnostics, chemical, cosmetic, nutraceutical, and other life sciences industries. Its products include those for biologics safety, biomanufacturing, specialized toxicology, animal health testing. In 2011, the company reached $126mm in sales. The additional capabilities from BioReliance give Sigma an entry into the biopharma testing services field, especially in the area of biologics, where BioReliance provides cell and virus characterization and genomics and analytical services. Sigma plans to use its {CompoZr} knockout zinc finger nucleotides in tandem with BioReliance’s toxicology and animal health services to create new assays, cell lines, and animal models for research customers. The deal also allows Sigma to more completely address all steps in the drug discovery process. The company already supplies chemicals, biochemicals, and equipment for use in pharma, biotech, and diagnostic R&D.

[Roche] in hostile takeover of next-gen sequencing company [Illumina] worth $5.5bn; withdrawn

Sun, 01 Jan 2012 00:00:00 -0500

Publicly traded [Illumina Inc.] (gene variation and function analysis) has received an unsolicited proposal to be acquired by [Roche] for $5.5bn, or $44.50 in cash per share, a 64% premium to the ten-day average prior to December 21, which is when rumors surfaced about a potential deal between the companies. Illumina is reviewing the bid and has asked shareholders not to take any action. For the past six weeks Roche says it’s made multiple efforts to enter into a negotiated transaction, including an initial $40/share bid that was rejected on January 19. Roche has now publicly taken its offer to Illumina’s shareholders, and one of Roche’s next steps will be to nominate its own slate of directors to Illumina’s board at Illumina’s 2012 annual meeting. Illumina would be merged with [Roche Applied Science] (with headquarters to move to San Diego, California), and would provide Roche with a leading position in high- and low-throughput DNA sequencing and microarrays, plus additional expertise in genomics research and diagnostics. Most important, taking on Illumina’s products would allow Roche to introduce next-generation DNA sequencing into clinical and routine diagnostics, and advance the development of companion diagnostics that employ biomarkers discovered via DNA sequencing. The deal could also boost [Roche Diagnostics]’ US presence, as 55% of Illumina’s $902.7mm in sales came from there. Founded in 1998, Illumina concentrates on array and sequencing consumables, and sequencing instruments, with the majority of its customers in the academic and government research sectors. The company’s core platforms, complementary to those Roche gained in its takeovers of [454 Life Sciences] and [Roche NimbleGen], involve SNP genotyping, gene expression profiling, epigenetics, and proteomics. Illumina first entered the next-generation sequencing market when it acquired Solexa in 2006, a transaction that gave Illumina its proprietary sequencing-by-synthesis technology. Illumina recorded 2010 earnings of $124.9mm, and unaudited cash on hand on October 2, 2011 totaled $230mm.

[Roche] acquires platelet testing specialist [Verum] for €11mm plus earn-outs

Thu, 01 Dec 2011 00:00:00 -0500

[Roche Professional Diagnostics] (RPD) is paying €11mm ($15mm) up front in cash for privately held [Verum Diagnostica GMBH] (laboratory coagulation analysis), which is owned by German medtech company [Dynabyte Informationssysteme GMBH]. Verum could also receive €2mm in earn-outs based on its performance. Verum was founded last year as a consolidation of all of Dynabyte’s diagnostic assets, most notably {Multiplate}, which was launched in 2005 and is now available in over 35 countries. {Multiplate} is a ten-minute test that monitors a person’s platelet function in whole blood, or the ability for platelets to aggregate and form a clot. Such assays are often needed in anesthesia, interventional cardiology, surgical, or intensive care settings to identify platelet dysfunction, monitor anti-platelet medication post heart attack or stent placement, or test for aspirin resistance. {Multiplate} doesn’t require the centrifugation or large amounts of blood draws mandated by the Born platelet function testing method. RPD plans to fund further development of {Multiplate} to show clinical utility for physicians and patients. The deal supports the company’s goal of introducing a complete portfolio of coagulation analyzers for sale to North American hospitals and reference labs sometime in 2014. RPD already has a set of coagulation diagnostics that cover genetic, point-of-care, and patient self testing with products such as {CoaguChek} and {Coasys}. Verum’s acquisition is RPD’s second this year of a German clinical diagnostics developer. In March RPD paid €65mm up front for PVT (now [Roche PVT GMBH]), which customizes laboratory automation for in vitro diagnostic labs.

[Alere] pays $84.6mm, plus earn-out, to buy diabetes supply company [Arriva]

Tue, 01 Nov 2011 00:00:00 -0400

[Alere Inc.] has acquired diabetes testing supplies company [Arriva Medical LLC]--a closely held company owned by private equity investment firm Palm Beach Capital--for $64.4mm in cash and 806k Alere restricted common shares valued at $20.2mm (based on Arriva’s ten-day average). Arriva shareholders are also eligible for a $3.4mm earn-out if certain operational goals are met by June 30, 2012. Arriva was formed in 2009 by direct-to-consumer testing supplies industry veterans David Wallace and Tim Stocksdale (co-founders of Access Diabetic Supply LLC, since sold to [Owens & Minor]) to enable diabetics to monitor their blood glucose levels in a home setting. Arriva’s mail order business provides patients in the US market with equipment and supplies including blood glucose monitors, test strips, lancets, lancing devices, and control solution. Arriva will operate as part of Alere’s Professional Diagnostics Solutions unit, which focuses on point-of-care, rapid diagnostics, health monitoring, and the patient self-testing markets. Earlier this month, Alere won a hostile bid to acquire [Axis-Shield], which will boost the former’s POC and clinical laboratory diagnostics business.

[Alere] finalizes acquisition of [Axis-Shield] at increased price

Tue, 01 Nov 2011 00:00:00 -0400

In a hostile takeover process that began in July, point-of-care diagnostics firm [Alere Inc.] has acquired a 94.18% stake in publicly traded [Axis-Shield PLC] (clinical lab and point-of-care diagnostics) in a cash transaction worth £221mm ($356mm), paying £4.70 ($7.56) per share--a 45% premium to Axis-Shield’s July pre-announcement price. At the offer’s commencement, Alere had already owned 2.23%. Alere’s initial bid was £4.60, but last month it upped the ante after Axis-Shield shareholders rejected the offer claiming it undervalued the company, which had 2010 revenues of £102mm. The acquired businesses--with subsidiaries located throughout Europe, including a POC division and a clinical laboratory diagnostics sector--will expand Alere’s distribution channels. Alere will enhance its core POC offerings with Axis-Shield’s {Afinion} (a multiparameter analyzer system) and {NycoCard} (containing a reader and several tests including HbA1c, U-Albumin, CRP, and D-Dimer) platforms, used in viral or bacterial testing for infections, diabetes, or cardiovascular disease. Within the laboratory segment, Axis-Shield has instruments and tests used in physicians’ offices to diagnose critical illnesses including metabolic and neurodegenerative conditions.

[Affymetrix] to acquire [eBioscience] for $330mm cash; companies later decide on $315mm

Tue, 01 Nov 2011 00:00:00 -0400

Genetic analysis company [Affymetrix Inc.] has signed a definitive agreement to buy private [eBioscience Inc.] (oncology and immunology flow cytometry reagents) for $330mm in cash. The acquisition gives Affymetrix a stronger presence in the molecular diagnostics market as the company slowly moves away from its traditional but weakening microarrays business. EBioscience, formed in 1999, is expected to bring in sales of over $70mm for the 2011 fiscal year. The company’s focus is on multicolor reagents to aid in the cellular analysis of cancers and immune diseases, and it also offers reagents for analysis of cytokines, growth factors, and soluble proteins. Additional research offerings include a wide range of antibodies and fluorochromes for cell biology, stem cell biology, immunology, oncology, and diagnostics applications. EBioscience is also the primary cytometry reagent provider for the Immunological Gene Project (ImmGen), a collaborative study involving 11 laboratories whose goal is to define gene expression profiles of certain immunological cell types in mice to determine individual and subset cell expressions and gene expression relationships. In recent years, Affymetrix has seen sales of its gene chip microarray products decline in the face of newer, better competition. The company looks forward to transforming its existing molecule diagnostics business through the eBioscience buy and hopes to become a key player in the field of molecular and translational medicine for oncology and immunology.

[Opko Health] pays $30mm plus earn-outs to acquire [Claros Diagnostics]

Sat, 01 Oct 2011 00:00:00 -0400

[Opko Health Inc.] (drugs and diagnostics) has acquired privately held point-of-care testing company [Claros Diagnostics Inc.] Opko paid $10mm in cash and issued $20mm of its equity (4.5mm common shares at $4.45 apiece; market average); it could also hand over up to $19mm in shares as earn-outs for achieved milestones. Claros, formed in 2004, developed a microfluidics-based quantitative blood test system using technology from [Harvard University]. The immunoassay platform requires only a finger stick and allows for the multiplexing of up to 20 separate tests in a single credit card-sized cassette. The company received approval in Europe for a test for prostate specific antigen (PSA), and says the technology has also been validated for other urology and infectious disease applications. Potential future indications include cardiology, women’s health, and companion diagnostics. Opko looks forward to applying Claros’ technology to some of its own already marketed tests. It also hopes to use the system with antibody tests it is developing for the early diagnosis of Alzheimer’s disease, Parkinson’s disease, and various cancers. The acquisition provides a good return for Claros’ syndicate of investors, which includes Oxford Bioscience, Bioventure Investors, [Accelerated Technologies], and Commons Capital. The group and others contributed to a $7.8mm Series A round for the company in 2007, and invested another $4mm through a second round in 2009.

[PerkinElmer] buys [Caliper Life Sciences] for $557mm in cash

Thu, 01 Sep 2011 00:00:00 -0400

[PerkinElmer Inc.] (diagnostics and analytical instruments) has agreed to buy [Caliper Life Sciences Inc.] (molecular imaging and detection technologies) for about $557mm in cash. Caliper shareholders will receive $10.50 per share, a 46% premium. Sixteen-year-old Caliper reported 2010 sales of $123.7mm with earnings of $4.28mm and had $25.4mm in cash on hand at the end of Q2 2011. The company markets the {Trio} microscopy imaging system, {LabChip XT} microfluidics device, and other lab automation, liquid handling, and optical imaging technologies to life sciences, research, diagnostics, and environmental firms. Its most recent tie-up (announced two days prior to the acquisition) is with [Yale University] for automated exome capture and library preparation workflows. The school bought Caliper’s {Sciclone} next-generation sequencing workstation and {LabChip} GXI to remove bottlenecks from the sample preparation process. Caliper has also sold products to other entities, including [Sequenom], [Complete Genomics], [MIT], [University of Connecticut Health Center], and [Johns Hopkins University]. The addition of Caliper will enable PE to provide its customers with a larger choice of molecular, cellular, animal and tissue imaging products, a microfluidics platform for genomics and proteomics use, and services that identify therapeutic response and assist in biotherapeutics development. Caliper’s CEO will join PE’s management team. PerkinElmer has been on a buying spree, picking up [Dexela], [Labtroics], [Geospiza], [CambridgeSoft], [ArtusLabs], and [Chemagen Biopolymer-Technologies] so far this year as well as [VisEn] and [Signature Genomic Laboratories] last year.

[Zynex] signs preliminary transaction to buy [NeuroDyne Medical]

Mon, 01 Aug 2011 00:00:00 -0400

Diagnostic and monitoring device company [Zynex Inc.]’s [Zynex NeuroDiagnostics Inc. ](ZND; neurosensors) division has signed a letter of intent to acquire privately held [NeuroDyne Medical Corp.] NeuroDyne, founded in 1993, produces real-time physiological monitoring systems for research, education, and commercial purposes. Its noninvasive sensors measure surface electromyography (sEMG; detection and amplification of the electrical activity of muscles), skin temperature, respiration, peripheral blood flow, and other parameters in CNS and neuromuscular diseases. The company also sells supplies including electrodes and conductive gels, plus accessories and health care IT software. Zynex only recently entered the neurodiagnostics market, having just established the ZND subsidiary in April 2010 to commercialize neurological diagnostic devices targeting hospitals and clinics. ZND is using Zynex’s existing {NeuroMove} electromyography and electric stimulation platform technology to develop new investigational devices for EMG, electroencephalography (EEG), sleep pattern, auditory, and nerve conductivity monitoring. Besides further establishing itself in neurodiagnostics, Zynex is expected to increase its international sales growth through the current acquisition.

[Immucor] taken private through $1.9bn TPG buy-out

Fri, 01 Jul 2011 00:00:00 -0400

Investment funds managed by TPG Capital will pay $27 per share in cash (a 36% premium) to buy reagent developer [Immucor Inc.] The deal is valued at about $1.9bn. Immucor sells automated reagent systems used by hospitals, reference labs, and blood banks to screen blood prior to transfusion. The company was founded in 1982, went public three years later, and brought in $329mm in 2010 revenues. Its products, including the {Galileo Echo} and {NEO}, have been used throughout the US and Europe to type and screen cell and serum components of blood for pathogens. In 2008, the company added to its offerings through the acquisition of [BioArray Solutions] and its molecular immunohematology technology {BeadChip}, which Immucor is now incorporating into a new screening instrument. Immucor is the leader in the $1.2bn blood reagent and instrument market, competing against the number-two player [Johnson & Johnson]’s [Ortho-Clinical Diagnostics] division. The purchase of Immucor by TPG is the latest in a trend of acquisitions by public and private equity firms both inside and outside of the health care industry. Earlier this year, Kohlberg Kravis Roberts & Co. paid $2.375bn for [Pfizer]’s drug formulation and delivery subsidiary [Capsugel].

[OraSure Technologies] buys [DNA Genotek] for $53mm in cash

Fri, 01 Jul 2011 00:00:00 -0400

[OraSure Technologies Inc.] (oral fluid diagnostic devices) has acquired closely held molecular diagnostics company [DNA Genotek Inc.] for $53mm in cash. DNA Genotek will function as a wholly owned subsidiary. Profitable since 2004, DNA Genotek reported 2010 revenues of $14mm. It has over 3,000 customers in more than 100 countries across the globe, including US universities and hospitals. The transaction is intended to solidify OraSure’s stake in the oral fluids diagnostics market by providing it with a portfolio of products that are used to noninvasively obtain oral fluids and process and store DNA and RNA samples. The nucleic acids can then be used for diagnostic and research purposes. DNA Genotek's lead product, the {Oragene} DNA sample collection kit, is an all-in-one system to gather (without having to use traditional blood or buccal swabs), stabilize, transport, and purify DNA from saliva.

[Argene] acquired by [bioMerieux] for €37.5mm

Fri, 01 Jul 2011 00:00:00 -0400

[Institut Merieux]’s [bioMerieux SA] has purchased molecular diagnostics firm [Argene SA] for €37.5mm ($52.8mm) up front and up to €5mm in contingent payments. Argene was founded in 1994 by Ab-Services SARL (a holding company that owned 100% of Argene prior to the acquisition) to develop and sell tests and reagents for infectious diseases, with a focus on immunocompromised patients. Three quarters of the company's €10mm in 2010 revenues came from the sale of its molecular diagnostics. Argene's molecular biology products include real-time and end-point PCR kits and reagents for cytomegalovirus, herpes, enterovirus, and bordetella. The company also offers optimized monoclonal antibodies used in tests for viral diseases (herpes, respiratory infections, papillomavirus, parvo, HIV), bacterial diseases (chlamydia, legionella) and parasitic infection (cryptosporidium). BioMerieux looks forward to bolstering its infectious disease offerings with Argene’s products. Specifically the company plans to integrate the new tests onto a test menu it is developing in collaboration with [Biocartis].

[Roche] to pay €130mm up front for cervical cancer diagnostics developer [mtm]

Fri, 01 Jul 2011 00:00:00 -0400

[Roche] is paying €130mm up front ($180mm) and up to €60mm in performance-related earn-outs for private cervical cancer testing company [mtm Laboratories AG], which will become a division of the Big Pharma’s tissue-based diagnostics unit [Ventana Medical Systems Inc.] (part of [Roche Diagnostics]). Founded in August 1999, mtm focuses on the early detection of cervical cancer. Performed on Pap smear samples, mtm’s {CINtec} Plus cytology kit can identify the presence of pre-cancerous cervical lesions that have the p16INK4a (p16) gene (which codes for the p16 protein) and the active cell proliferation marker Ki-67. When overexpressed, p16 is a clear indicator of activity of all the various high-risk HPV types, and it is a validated marker of the early oncogenic process behind cervical cancer. {CINtec} Plus, which is sold only in Europe at this point, has the potential to distinguish between HPV-positive patients who have or don’t have the pre-cancerous lesions (often women without the pre-cancer undergo unnecessary biopsies or other procedures). In the US {CINtec} is available just for research purposes, but Roche plans to submit a PMA in the future for clinical use. Mtm also provides histological diagnostics via {CINtec} Histology, an immunoassay (launched globally) that screens for p16 overexpression on slides from formalin-fixed, paraffin-embedded cervical biopsies. Alongside traditional staining methods, the product detects high-grade cervical intraepithelial neoplasia and cervical carcinoma. The p16 biomarker could also have potential in testing for other cancers such as anogenital, head and neck, lung, and breast. In addition to the {CINtec} line, mtm sells the {Cervatec} ELISA assay for p16 detection in cellular lysate from a cervical smear. Mtm has raised at least $73 million in venture financing, most of which was from a $63 million Series C round initiated in October 2006. The acquisition nicely dovetails with Roche’s approval this past April for an HPV 16 and 18 genotyping assay (that will run on its {cobas} machine) to identify women at high risk for developing cervical cancer. Roche also teamed up last year with the [German Cancer Research Center] to develop a cervical cancer diagnostic that will screen for spliced viral RNA molecules to stratify those with high- and low-grade cervical lesions.

[Hologic] buys [TCT] for $135mm cash, plus earn-out

Wed, 01 Jun 2011 00:00:00 -0400

[Hologic Inc.] (women’s health diagnostics and medical imaging systems) has acquired private Chinese diagnostics distributor [TCT International Co. Ltd.] for $135mm in cash ($35mm of which will be paid on the one-year anniversary), plus a cash earn-out equal to a multiple of TCT’s increasing revenue growth (continent upon its performance over the next two years). The deal gives Hologic expanded access to the Chinese market; TCT already exclusively distributes Hologic’s {ThinPrep} pap test, {Rapid fFN} fetal fibronectin test, and {NovaSure} endometrial ablation device. TCT also sells other companies’ diagnostics and runs a central cytology lab. Based in Beijing with over 500 employees, TCT will be integrated into Hologic’s international operations. The acquisition is in line with Hologic’s strategy to broaden its global women’s health care franchise. In recent years Hologic bought [Interlace Medical], maker of the {MyoSure} hysteroscopic tissue removal system, and [Sentinelle Medical], provider of MRI breast coils, tables, and software.

[Luminex] pays $34mm to buy [EraGen Biosciences]

Wed, 01 Jun 2011 00:00:00 -0400

[Luminex Corp.] ({xMAP} and {xTAG} multiplex platforms for bioassay production) has acquired private molecular reagent manufacturer [EraGen Biosciences Inc.] for $34mm in cash. Luminex gains new molecular diagnostic assays that fit in well with its own clinical diagnostics portfolio, especially in the infectious and genetic disease areas where EraGen produces early-detection in vitro diagnostics, analyte-specific reagents, and research-only reagents for identifying infectious diseases related to organ transplants. Luminex says the deal will not only expand its product line, but also improves its sales team (EraGen undertook a major expansion of its sales, marketing, technical support, and customer service organizations a year ago) and R&D capabilities. EraGen is expected to bring Luminex an additional $5-7mm in 2011 consolidated revenue. EraGen started operations in 1994 as a virtual firm called Sulfonics, which owned a technology ({AEGIS}) that enhanced DNA detection and manipulation (licensed then to Chiron), plus the {Master Catalog} genomic database. Five years later, the company reincorporated as EraGen to develop hardware and software genomics analysis tools. Today EraGen has created nucleic acid-derived tests for clinical laboratories and medical researchers. The diagnostics were built using EraGen’s {MultiCode}, a chemistry platform for real-time PCR and multiplex PCR assays. {MultiCode}-RTx, the company’s real-time PCR technology, is probe free and supports single-tube multiplex reactions. EraGen has developed {MultiCode}-RTx into a qualitative test for diagnosing herpes simplex virus-1 or 2 from vaginal lesion swab samples. The product received 510(k) clearance in May 2010. EraGen also sells a DNA sample processing control system for identifying systemic variations that can occur during DNA extraction or amplification, and is developing a 17-type respiratory virus panel that will run on its {MultiCode}-PLx platform. EraGen raised $12mm in Series A financing in 2006, its only disclosed venture round to date. The company’s 2010 sales totaled $8mm. The EraGen acquisition is Luminex’s first since stepping up its presence in the molecular diagnostics market with its 2006 stock-for-stock transaction for Tm Bioscience (now called [Luminex Molecular Diagnostics]), another company also focused on infectious disease and genetic disorders.

[Qiagen] acquires stake in [Ipsogen]

Wed, 01 Jun 2011 00:00:00 -0400

Sample and assay technologies developer [Qiagen NV] has offered €12.90 ($18.63, a 71% premium) per share to acquire 47% of public molecular diagnostics firm [Ipsogen SA]. Immediately following the signing of a definitive agreement and the commencement of the initial purchase, Qiagen will begin the process of acquiring the remaining 53% of Ipsogen. The total value of the deal is €65mm based on 5mm shares outstanding. Ipsogen, which was formed in 1999 and had 2010 sales of €8.4mm, develops and markets diagnostics to help profile hematological cancers and aid in treatment personalization. The company’s 80 tests incorporate 15 biomarkers, and are divided into four assay families: BCL-ABL for chronic myeloid leukemia, JAK2 V617F for myeloproliferative diseases, PML-RARA for promyelocytic leukemia, and a group of other tests for rare forms of leukemia. (A multigene expression test for early invasive hormone-receptor positive breast cancer is also in development.) Ipsogen’s products are based on the same PCR quantitative technology that Qiagen uses, allowing for easy integration of the tests into Qiagen’s {Rotor-Gene Q} and {QIAsymphony RGQ} laboratory automation platforms. If the full offer is completed, Ipsogen’s Marseilles, France site is slated to become a Qiagen global center of excellence for leukemia and breast cancer test development and manufacturing. Post-acquisition, Ipsogen’s three senior executives/co-founders will remain with the combined entity.

[Lab21] pays undisclosed amount for [Myconostica]

Sun, 01 May 2011 00:00:00 -0400

Personalized medicine company [Lab21 Ltd.] has further expanded its infectious disease portfolio through the purchase of privately held [Myconostica Ltd.] (molecular diagnostics to detect invasive fungal infections) for an undisclosed sum. The acquisition gives Lab21 its first nucleic acid-based assays--Myconostica’s {MycAssays} to detect the respiratory fungal pathogens aspergillus and pneumocystis. The newly acquired portfolio also contains {MycXtra} for extracting and purifying fungal DNA from respiratory samples, and the {MycArray} four-hour test that can identify yeasts from extracted DNA samples or directly using colony PCR. Unlike currently available fungal diagnostics that rely on culturing techniques, Myconostica’s molecular tests offer results faster and with more specificity. Lab21 will also capitalize on Myconostica’s manufacturing resources. Earlier this year, Lab21 bought another UK diagnostics firm [Microgen Bioproducts Ltd.]

[Nestle] boosts personalized nutritionals initiative with [Prometheus] buy

Sun, 01 May 2011 00:00:00 -0400

In a deal that one Bank Vontobel analyst estimated at $567mm-1bn, [Nestle Health Science SA], a newly formed division of [Nestle SA], has acquired privately held [Prometheus Laboratories Inc.] (drug and diagnostic in-licenser). Nestle is attracted primarily to Prometheus’ strength in gastrointestinal diagnostics (and the supporting sales force), concentrating on three diseases: IBS, IBD, and celiac. Last year, Prometheus launched a prognostic test for Crohn’s that not only quantifies patient risk for developing complications over time, but also aids health care providers in determining the best treatment. The product is highly complementary to the company’s flagship {Prometheus} IBD Serology 7 biomarker test. Prometheus also sells GI drugs in the US, including {Entocort} EC (licensed from [AstraZeneca]) and {Lotronex}, from [GSK]. Prometheus focuses on oncology as well. It has rights to the {ProOnc} line of miRNA cancer diagnostics from [Rosetta Genomics], and last year signed an oncology pharmacogenomics deal with [Bayer HealthCare Pharmaceuticals], which is using Prometheus’ {CEER} assays to identify ideal patient populations for its drug candidates. Finally, the acquired firm has several cancer therapeutics, including US rights to [Wilex]’s Phase III non-metastatic clear-cell renal cell carcinoma antibody {Rencarex}, and the marketed recombinant protein {Proleukin} for melanoma and kidney cancer (from [Novartis]). Prometheus has raised $35mm in equity to date, plus $60mm in senior notes, and a $260mm credit facility. The sixteen-year-old company announced a try at an IPO in 2007, and up until only a few months ago it was still filing amendments to the S-1 in the hopes of going public (and changing its name to Prometheus RxDx Corp.). In 2010, Prometheus achieved $519mm in net sales, and $48.2mm in net income. The use of Prometheus’ diagnostics IP will support Nestle Health’s research into daily personalized nutrition products for prevention of certain chronic diseases, including diabetes, obesity, cardiovascular conditions, and Alzheimer’s. Nestle Health was established at the beginning of this year to bridge capabilities in the food and pharmaceutical industries.

[Health Diagnostic Laboratory] buys [Harris Scientific]

Sun, 01 May 2011 00:00:00 -0400

[Health Diagnostic Laboratory Inc.] (HDL; biomarkers for cardiovascular and other diseases) has acquired [Harris Scientific Inc.], a closely held company that provides omega-3 fatty acid testing. Harris Scientific was established by the [University of South Dakota]’s William Harris, PhD, who will join HDL to expand the company’s fatty acid diagnostics. Dr. Harris is also the founder of [OmegaQuant], which offers the {HS-Omega-3 Index} blood test to determine levels of omega-3, EPA, and DHA. Omega-3 fats reduce inflammation in the body, prevent blood clotting, and increase membrane function; the fatty acids are critical to proper brain, heart, eye, and joint performance. The deal enables HDL to expand its biomarkers and tests for risk factors for cardiovascular and related diseases. The company is hoping to create a panel that measures levels of over 25 fatty acids within five groups: omega-3, omega-6, and cis-monounsaturated, saturated, and trans fatty acids in erythrocyte membranes. Earlier this year, HDL teamed up with [Gamma Therapeutics] to create an assay to predict myocardial infarction and the risk of experiencing a stroke.

[Rules-Based Medicine] acquires [Satoris] assets

Sun, 01 May 2011 00:00:00 -0400

Just weeks ahead of closing its acquisition by [Myriad Genetics Inc.], [Rules-Based Medicine Inc.] (RBM; biomarker testing and diagnostics) has purchased all of the intellectual property assets of privately held [Satoris Inc.], which is developing an Alzheimer’s diagnostic. The IP protects biomarker discovery and panels used in testing for AD, frontal temporal dementia, Parkinson’s, and other neurological disorders in research and clinical settings. Satoris was founded in 2003 by [Stanford University] scientist Tony Wyss-Coray, PhD, and since then has been investigating a diagnostic (co-developed with [RayBiotech] under an April 2009 deal) that screens for plasma-signaling proteins with the goal of identifying AD years before the disease significantly gets worse. Dr. Wyss-Coray and other scientists published a study in Nature Medicine in 2007 that determined with 90% accuracy which patients would develop AD within two to six years. The acquired assets complement RBM’s work towards early detection of neurodegenerative disorders. RBM's research in this area has focused on AD--it launched an Alzheimer’s biomarker panel in March 2009 that was proven to diagnose the disease early and distinguish AD from other types of dementia. RBM has also done biomarker discovery for Parkinson’s, frontotemporal lobar degeneration, and subcortical vascular dementia, and the company has an entire division--[Psynova Neurotech]--dedicated to neuropsychiatric biomarkers. At the end of the month, Myriad Genetics is expected to finalize its $80mm cash takeover of RBM, a move that Myriad hopes will fuel efforts in companion diagnostics development. Besides the Satoris deal, RBM also announced on the same day that it will use its {TruCulture} for modeling the human immune system in a project with [Institut Pasteur].

[Thermo Fisher] pays €2.46bn for [Phadia]

Sun, 01 May 2011 00:00:00 -0400

[Thermo Fisher Scientific Inc.] has agreed to pay €2.46bn ($3.46bn) in cash to buy Swedish in vitro diagnostics company [Phadia AB] from the private equity firm Cinven. Phadia will receive €1.052bn in cash, and the remainder will be used to repay debt. Phadia was formerly known as Pharmacia Diagnostics, part of Pharmacia before Pharmacia's acquisition by [Pfizer]. Post-acquisition in 2004 Pharmacia Diagnostics spun out into a stand-alone, investor-owned company, and in 2006 changed its name to Phadia to reflect its independence. The firm had 2010 sales of €367 globally, about 85% of which came from its {ImmunoCAP} food and environmental allergen testing business. The company also sells the {ELiA} brand of autoimmune tests for conditions including celiac disease, rheumatoid arthritis, and thyroid conditions. Thermo Fisher sees great opportunity in gaining access to the in vitro allergy testing business right now; the allergy diagnostics market in the US, which stands at about $500mm, is made up primarily of skin-prick testing, but testing centers are more widely adapting to newer blood-based testing techniques such as those offered by Phadia. Thermo, which also looks forward to an increased presence in the international emerging countries it will gain access to, will operate Phadia as part of its Specialty Diagnostics business, under the Analytical Technologies segment. The transaction marks the largest purchase ever for Thermo, next to the recently-closed $2.1bn acquisition of chromatography manufacturer [Dionex], and keeps the life sciences firm in line with its goal of expanding further into specialty diagnostics.

[LabCorp] buys [Orchid Cellmark] for $85.4mm

Fri, 01 Apr 2011 00:00:00 -0400

[Laboratory Corp. of America Holdings] has purchased fellow diagnostics firm [Orchid Cellmark Inc.] for $2.80 per share (a 40% premium) in cash, or a total of $85.4mm. Orchid Cellmark, which reported 2010 revenues of $63.7mm and employs 530 people, has technologies that are used in the identification of criminals, to exclude suspects, and exonerate people wrongly convicted. The company also provides immigration, adoption, tribal and heritage verification, genealogy and kinship, estate, twin, and infidelity testing. With laboratories in the US and the UK, the acquisition of Orchid Cellmark will increase LabCorp’s share of the US market and establish an identity testing presence in the UK. About 64% of LabCorp’s revenues come from routine tests, and the remaining 36% from specialized tests (allergies, genetics, identity, forensics, infectious diseases, cancer, clinical trials, and occupational testing). LabCorp is not alone in its quest for a larger piece of the diagnostics pie; [Quest] recently picked up [Athena Diagnostics] and [Celera].

[Myriad Genetics] pays $80mm cash for [Rules-Based Medicine]

Fri, 01 Apr 2011 00:00:00 -0400

To create what it hopes will be a new leading companion diagnostics developer, [Myriad Genetics Inc.] (molecular diagnostics) has acquired private biomarker testing laboratory [Rules-Based Medicine Inc.] for $80mm in cash. The price tag provides a 3.2x return for Equity Group Investments, Cross Creek Capital, and Stephens Capital Partners, which participated in RBM’s October 2007 $25mm Series A financing, the company’s only disclosed venture raise. Post-acquisition, RBM will become a wholly owned subsidiary and will be renamed [Myriad RBM Inc.] to focus on companion diagnostics discovery and development. The commercial diagnostics unit of RBM will become part of Myriad’s molecular diagnostic laboratory in Salt Lake City. Through the deal, Myriad will branch out beyond its current specialty of cancer into additional disease areas such as psychiatric disorders, hepatitis C, diabetic kidney failure, and inflammation. (Myriad was dealt a blow last year when a federal court ruled that claims in seven of its patents on the BRCA breast cancer genes were invalid, although Myriad is appealing this decision.) Myriad also gains eight molecular diagnostics and access to new patient cohorts. A 2002 spin-off from [Luminex], RBM conducts biomarker discovery using its {Multi Analyte Profiling} ({MAP}) multiplex immunoassay for protein analysis. The company took on additional multiplex assay IP when it merged with Multiplex Biosciences in 2006. RBM has several different {MAP} products geared towards certain therapeutic areas; for example, last month it launched {OncologyMAP} for quantitative measurement of cancer-related proteins. Through its [Psynova Neurotech] subsidiary, RBM has access to neuropsychiatric biomarkers; RBM gained majority ownership of Psynova when the pair reached a milestone in their June 2008 collaboration to co-develop a schizophrenia blood test (now called {VeriPsych}). RBM’s other division [EDI GMBH] offers the Human Organo-Typic (HOT) cell culture system, a platform for ex vivo studies of drug safety and efficacy. Throughout its lifetime, RBM has teamed up with more than 20 pharmaceutical companies, including [Roche], which is seeking a companion diagnostic for one of its neurology candidates. RBM attempted an initial public offering at the end of 2009, but withdrew the S-1 because of market conditions almost a year later. The company had 2010 sales of $25mm.

[Qiagen] offers to buy [Cellestis] for $355mm, later ups offer

Fri, 01 Apr 2011 00:00:00 -0400

Molecular diagnostics company [Qiagen NV] is proposing to buy public Australian diagnostics firm [Cellestis Ltd.] for A$341mm ($355mm) in cash, or $3.69 per share (a 25% premium). Qiagen has had its eye on Cellestis’ highly sensitive, patent-protected {QuantiFERON}, the only in vitro diagnostic technology that can provide information on the activity of the cell-mediated functions of the immune system from whole blood samples. {QuantiFERON} can detect diseases earlier than currently available methods and has already been incorporated into marketed diagnostics for latent tuberculosis (TB) and cytomegalovirus (CMV). (Qiagen itself has a DNA-based molecular test for CMV.) Qiagen believes {QuantiFERON} will complement its own molecular diagnostics portfolio including the {QIAsymphony} assay system, {QIAensemble} high-throughput screening platform, and ESE fluorescence-based optical technology. Cellestis reported revenues of $41.9mm and a net profit of $8.6mm as well as $23.4mm in cash and equivalents for the FYE June 30, 2010. Qiagen has been on a deal-signing streak this year: in January it partnered with [Eyesense AG] to develop a new noninvasive ophthalmic device for monitoring blood glucose, and also purchased a minority stake in [Alacris Theranostics GMBH] and optioned biomarkers discovered by the start-up. A month later, Qiagen received a worldwide non-exclusive two-year option to commercialize a colorectal cancer blood test based on [Epigenomics AG]’s mSEPT9 biomarker and DNA methylation analysis technologies.

[Quest Diagnostics] buys [Celera]

Tue, 01 Mar 2011 00:00:00 -0500

[Quest Diagnostics Inc.] has acquired [Celera Corp.] for $671mm, or $344mm net of Celera’s $327mm in cash and investments. Shareholders received $8 per share (a 28% premium). Thirteen-year-old Celera reported 2010 revenues of $128.2mm with a net loss of $24.6mm. It will continue to operate independently, with Celera’s CEO and other senior management staying with the company. The deal, which provides Quest with access to genetic tests and a pipeline of biomarkers, furthers Quest’s mission to become a leader in esoteric and gene-based diagnostics for cancer, infectious and cardiovascular diseases, and neurological disorders. Quest also gets [Berkeley HeartLab]’s specialized sales team and cardiovascular tests for HDL and LDL analysis to assess the risk of cardiovascular disease, and three genotyping tests: KIF6 for coronary disease and the response to statins, 9p21 to determine the risk of early-onset myocardial infarction, and LPA for coronary disease and the response to aspirin. The acquirer also gets molecular diagnostics for transplantation genetics, cystic fibrosis, HIV drug resistance, and Fragile X syndrome. The purchase of Celera comes only a few weeks after Quest picked up neurological company [Athena Diagnostics] from [Thermo Fisher Scientific] for $740mm in cash.

[Roche] buys German lab automation company [PVT] for €65mm

Tue, 01 Mar 2011 00:00:00 -0500

[Roche Professional Diagnostics] (RPD) is acquiring private German company [PVT Probenverteiltechnik GMBH] (automated solutions for clinical diagnostic laboratories) for €65mm ($91mm) up front, plus as much as €20mm in performance-based earn-outs. The deal also includes PVT’s US distribution subsidiary [PVT Lab Systems LLC]. PVT will become a Roche unit dedicated to developing and manufacturing laboratory automation tools. The companies are already very familiar with each other, having been partners for the last 15 years--Roche has distribution rights to PVT’s portfolio in Europe, Asia, and Latin America. Founded in 1991, PVT focuses on customized automation to maximize workflow for in vitro diagnostic laboratories. The company addresses procedures done before and after IVD analysis to improve productivity and turn-around time, reduce costs, and help scientists manage anywhere from very low sample volumes up to as much as tens of thousands of samples per day. Its products, which target large commercial labs and hospital labs, automate functions such as pipetting, pre-sorting and sorting, and archiving samples; offerings include the centrifuging modules {EC1}, {EC2}, and {EC3}; the {RSA Pro} aliquoting system; and {Silver Server} software to centrally manage lab data flow. Besides Roche, PVT has licensed its products to [Sysmex] and [Vital Diagnostics]. The acquisition will now allow RPD to promote to labs handling all types of sample volumes. Roche believes there are synergies between PVT’s portfolio and its flagship {cobas} analyzers. At CHF4.8bn ($5.2bn) in 2010 sales, RPD--which specializes in instruments, centralized and decentralized tests, and software for the clinical point-of-care market--was the most profitable unit of [Roche Diagnostics] last year.

[Eurofins] acquires [Lancaster Labs] from [Thermo Fisher] for $200mm

Tue, 01 Feb 2011 00:00:00 -0500

[Thermo Fisher Scientific Inc.] has sold its analytical services division [Lancaster Laboratories Inc.] to [Eurofins Scientific SE] (primarily cGMP quality control services) for $200mm, subject to post-closing adjustments. Founded in 1961 and part of Thermo’s laboratory products and services business, Lancaster provides contract laboratory testing and analytical services such as cell bank manufacturing, mycoplasma testing, biochemistry, and stability testing and storage. It targets pharmaceutical, biotech, and environmental sciences markets. The company operates mainly in the US and, through its acquisition of Microchem Laboratories, in Ireland. It reached $115mm in revenues last year. Eurofins, a Belgian firm, says the current transaction will greatly expand its presence in North America. Lancaster is one of two divestments that Thermo has announced--Thermo has also sold esoteric testing unit [Athena Diagnostics] to [Quest] for $740mm.

[Thermo Fisher] sells [Athena Diagnostics] to [Quest] for $740mm

Tue, 01 Feb 2011 00:00:00 -0500

[Thermo Fisher Scientific Inc.] is divesting its esoteric and genetic testing division [Athena Diagnostics Inc.] to [Quest Diagnostics Inc.] for $740mm. Thermo has concurrently sold another subsidiary--[Lancaster Laboratories]--to [Eurofins Scientific] for $200mm. Athena, a unit of Thermo’s specialty diagnostics segment (part of analytical technologies) is an esoteric laboratory that provides gene-derived neurological tests for physicians, hospitals, and reference labs. Its portfolio of over 350 advanced assays cover a wide range of CNS and neuromuscular diseases including Alzheimer’s (a noninvasive ophthalmic test developed by and licensed from [Harvard University]), spinal muscular dystrophy, and ataxia. The company achieved $110mm in 2010 sales. Athena Diagnostics was established in 1988 as Genica Pharmaceuticals, which was acquired by neurology drug company Athena Neurosciences six years later. [Elan] bought Athena Neurosciences in 1996, but in 2001 decided to spin off the diagnostics component (Athena Diagnostics) through an IPO. However in 2002, private equity firm Behrman Capital ended up buying Athena Diagnostics for $82mm. Fisher Scientific (which merged with Thermo Electron to create Thermo Fisher in 2006) acquired Athena in March 2006 for $283mm, over 5x Athena’s sales at that time (the current deal values Athena at 6.7x sales). Athena will bring Quest to a top position in the esoteric testing market, and gives the leading diagnostics player an additional therapeutic area of focus besides cancer, infectious disease, and cardiology. Quest expects the transaction to add 1% to its 2011 revenue growth. While Thermo is losing one of its analytical technologies divisions, the company has added on to this business with two recent acquisitions--[Dionex] (ion chromatography) and [Fermentas] (molecular and cellular biology research supplies).

[Danaher] takes over [Beckman Coulter] in deal worth $6.8bn

Tue, 01 Feb 2011 00:00:00 -0500

In its latest deal that adds more instrumentation offerings, [Danaher Corp.] (testing and analytical systems, dental technologies, and diagnostics) is acquiring public biomedical testing company [Beckman Coulter Inc.] for $83.50 per share (a 47% premium to the ten-day average prior to December 9, 2010, when the takeover was rumored). Including Beckman’s 70.9mm shares outstanding, plus the assumption of debt and net cash, the transaction is valued at $6.8bn. Danaher will add Beckman to its life sciences and diagnostics unit, complementing Danaher’s [Radiometer] and [Leica] in vitro diagnostics subsidiaries. Founded in 1935, Beckman focuses primarily on clinical diagnostics and life science labs. Its larger segment, clinical diagnostics, includes chemistry and clinical automation, cellular analysis, and immunoassay and molecular diagnostics that test for blood-based diseases. Beckman recently improved its offerings in chemistry testing when it acquired [Olympus]’ diagnostic systems business in February 2009. Following that transaction, Beckman holds the number three spot in this category worldwide. The life science unit offers analytical systems (instruments and consumables), servicing biopharma, academic, and government customers that perform disease and drug research. The company operates in 160 countries, deriving half of its revenue from outside the US. Danaher especially sees potential in Beckman’s Chinese presence--presently Beckman is the second top IVD player in China. Beckman has also recently dabbled in the companion diagnostics area, teaming up with [Transgene] earlier this year to develop a test for the biotech’s TG4010 immunotherapeutic for non small cell lung cancer. Beckman’s 2009 earnings were $147.1mm, on sales of $3.3bn. It had $285mm cash on hand on September 30, 2010. Besides the current takeover, Danaher has also acquired in the last couple years [Genetix], MDS Analytical Technologies, and AB Sciex (a JV between MDS and [Life Technologies]) to complement its instrumentation portfolio.

[Trinity] buys [Phoenix Biotech] for $2.5mm

Tue, 01 Feb 2011 00:00:00 -0500

[Trinity Biotech PLC] is acquiring fellow diagnostics firm [Phoenix Biotech Corp.] for $2.5mm in cash--$1mm up front and the remaining to be paid over the next 12 months. Closely held Trinity will merge Phoenix’s Toronto operations into its western New York location. Trinity is already working on assays for a range of infectious diseases including syphilis, Phoenix’s primary area of interest. The acquired company offers the only FDA-approved total antibody (IgG & IgM) ELISA test for syphilis in the US, where the incidence of the disease is growing at a rate of 12% annually. Phoenix sells the products under the {Trep-Chek} and {Trep-Sure} brands. The combination of Phoenix’s capabilities with Trinity’s portfolio will significantly enhance Trinity's position in the syphilis diagnostics market not only in North America but worldwide. Phoenix generates about $1.25mm in yearly revenues. Per a previous deal between the parties, Trinity had been the non-exclusive US distributor of Phoenix’s syphilis products.

[Novartis] buys [Genoptix] for $440mm

Sat, 01 Jan 2011 00:00:00 -0500

[Novartis AG] has agreed to buy publicly traded [Genoptix Inc.] (laboratory testing) for $440mm in cash, or $25 for each share (a 25% premium). Genoptix, which was formed in 1999 and reported 2009 revenue of $184mm, provides laboratory services to hematologists and oncologists. The company specializes in diagnosing cancers in bone marrow, blood, and lymph nodes and uses molecular testing for solid tumors. As of September 30, 2010, Genoptix had $20.1mm cash on hand. Novartis plans to retain Genoptix’s 500 employees and its current operations, and integrate the company into [Novartis Molecular Diagnostics], which has companion diagnostics programs. The Big Pharma believes the deal will put it closer to its goal of personalizing medicine. While Novartis has formed numerous alliances lately that are cancer drug-focused (with the likes of [ImmunoGen], [Cepheid], and [Array BioPharma]), it has signed biomarker agreements with [Pathwork Diagnostics] and [Orion Genomics].

[Caliper] takes over [Cambridge Research & Instrumentation] in $20mm deal

Wed, 01 Dec 2010 00:00:00 -0500

[Caliper Life Sciences Inc.] (drug discovery tools) has bought [Cambridge Research & Instrumentation Inc.], a privately held maker of optical imaging systems, in a transaction valued at $20mm, in which Caliper will pay $7.9mm cash, issue 1.65mm of its own shares worth $10.3mm, and assume $1.8mm of Cambridge’s debt. Cambridge’s current CEO George Abe will become Caliper’s new SVP of cellular and tissue analysis. Cambridge, which was founded in 1985, produces multispectral optical imaging systems for multiplexed tissue analysis, such as reviewing multiple biomarkers in a single test, or quantifying diseases--in the cell or live animals--in tissue samples. Its key brand {Nuance} as well as {Vectra} are used for biological imaging on brightfield and fluorescence microscopes. Cambridge also sells the image analysis software {inForm} and {Pannoramic} whole-slide scanners. The company’s customers primarily work in biomedical research and pharmaceutical and diagnostic development, and its instruments have many applications including immunohistochemical analysis and assessing viability of eggs in in vitro fertilization. Cambridge’s 2010 revenues are estimated at $12mm. The deal will allow Caliper to offer a complete package of imaging products from preclinical (in vitro assays) through human research (in vivo). Cambridge’s portfolio complements the in vivo optical imaging technology that Caliper gained through its 2006 acquisition of Xenogen. Further, Caliper now has additional expertise in digital and multiplexed pathology, and can enhance its efforts in companion diagnostics development.

[Gen-Probe] pays $53mm in cash for [GTI Diagnostics]

Wed, 01 Dec 2010 00:00:00 -0500

Molecular diagnostics firm [Gen-Probe Inc.] is strengthening its transplant testing business through the $53mm cash purchase of privately held [GTI Diagnostics]. GTI was formed in 1985 as a for-profit division of the [BloodCenter Research Foundation], which in 2008 sold off its ownership to the Riverside Company private equity group. GTI and the BloodCenter (even after the sell-off) have developed assays for transplantation, blood bank, and specialty coagulation markets. Most notably, its products include human leukocyte antigen (HLA) detection lines, which Gen-Probe already sells under its {Lifecodes} brand. GTI also markets the {QUIK-ID} assays that detect IgG antibodies to HLA, and serology typing trays. Outside of transplantation, the company has tests that diagnose coagulation and hemostasis disorders, as well as ELISA tests and molecular diagnostics for use in blood banks. Gen-Probe will use its existing salesforce to offer GTI's products to current and new clients.

[Glaxo] spends $70mm for Chinese urology specialist [MeiRui]

Wed, 01 Dec 2010 00:00:00 -0500

[GlaxoSmithKline PLC] has paid $70mm in cash for [Nanjing MeiRui Pharma Co. Ltd.], a private drug, device, and diagnostic company based in China. The acquisition greatly expands GSK's access to the Chinese hospital pharmaceuticals market (worth approximately $30bn) in the area of urology. MeiRui's top two medicines are {Prostat} (rye pollen extracts), a natural product for benign prostatic hyperplasia and chronic non-bacteria prostatitis, and {SheNiTing} (tolterodine) for overactive bladder. In addition, MeiRui sells {ImmunoCAP}, a blood-based immunoassay that detects allergen-producing antibodies that cause allergies or asthma, as well as the {Urexact} digital urine monitoring device, which tracks urine output of ICU patients. Not only does GSK take over this portfolio, it will also gain MeiRui's manufacturing plant in Nanjing City and the company's sales and marketing personnel. MeiRui was founded in 1996 by Pagoda Pharma Group, a British Virgin Islands operating company that currently owns 90%. MeiRui was established as a joint venture combining Cal-Nan Horizon Quest (a US company), Pharmacia Allergon AB (a Swedish drug firm, now independent of Pharmacia, which was acquired by [Pfizer]) and the [Nanjing Medical Group] (Chinese pharmaco). The remaining 10% of MeiRui's shares are held by [Allergon AB]. In the past two years, GSK has made significant investments in the Chinese emerging market, especially in the area of vaccines. In 2008, it announced plans for a joint venture with [Shenzhen Neptunus] focused on seasonal, pre-pandemic, and pandemic flu vaccines native to China, Hong Kong, and Macau. GSK invested $31mm into the venture for a 40% stake, and when the deal was finalized a year ago, the pharmaco said it would eventually contribute another $14mm for majority ownership. GSK also formed a JV with [Jiangsu Walvax Biotech] to market in China pediatric vaccines, including the Big Pharma's {Priorix}.

[Sekisui Chemical] pays $265mm in cash for [Genzyme Diagnostics]

Mon, 01 Nov 2010 00:00:00 -0400

Japanese pharmaco [Sekisui Chemical Co. Ltd.] is paying $265mm in cash to acquire [Genzyme Corp.]'s [Genzyme Diagnostics]. Following the transaction, Sekisui said it will offer employment to Genzyme Diagnostics' 575-strong staff--including executives--and continue operating all facilities. Genzyme's diagnostics unit had been providing tests and reagents in the areas of diabetes and cardiovascular, renal, and infectious diseases. It specializes in HDL and LDL cholesterol testing products, and last year generated $167mm in total revenues. The business will operate as part of [Sekisui Medical Co. Ltd.] Genzyme is divesting the diagnostics segment to allocate resources towards high-growth areas such as manufacturing operations and its rare disease/orphan drug business. In May the company announced restructuring plans and its intention to sell off business units including diagnostics and pharma intermediates. Two months ago, [Laboratory Corp. of America Holdings] acquired [Genzyme Genetics] for $925mm in cash. Meanwhile, Genzyme is still being sought after by [Sanofi], who launched a $69-per-share tender offer directly to shareholders.

[Transgenomic] buys [Clinical Data]'s {Familion}, {PGxPredict}

Mon, 01 Nov 2010 00:00:00 -0400

[Transgenomic Inc.] (genetic variation and mutation analysis tests) has agreed to purchase [Clinical Data Inc.]'s (mainly cardiovascular diseases and CNS disorders) {Familion} testing and {PGxPredict} pharmacogenomics biomarker development business for $15.4mm, comprised of $6mm in cash, a three-year 10% note for $8.5mm, and a one-year 6.5% note for $932k. Clinical Data will also receive a percentage of accounts receivables that Transgenomic collects for 18 months after the transaction closes (up to $1.8mm), plus development and commercialization milestones (two payments, each of up to $250k in cash or Transgenomic stock for the launch of biomarker assays for any FCGamma gene or any ABCB or MDR gene) and royalties on several new pharmacogenomic diagnostics. Included in the deal is the {Familion} brand of cardiac genetic tests and {PGxPredict} pharmacogenomic diagnostics as well as relevant biomarkers and the infrastructure that supports the acquired business unit. The {Familion} products are used to detect mutations that can cause lethal heart conditions such as Long QT syndrome, Brugada syndrome, catecholaminergic polymorphic ventricular tachycardia, hypertrophic cardiomyopathy, arrhythmogenic right ventricular cardiomyopathy, dilated cardiomyopathy, and left ventricular noncompaction cardiomyopathy. The {PGxPredict} tests can determine if rituximab is the best individual treatment for follicular non-Hodgkin's lymphoma patients and to assess the risk of clozapine-induced agranulocytosis. The divesture enables Clinical Data to complete its transformation into a strictly pharma company and the funds from the sale of non-core assets will be applied to the continued development of two late-stage therapeutics: vilazodone for major depressive disorder (under review by the FDA) and {Stedivaze} for myocardial perfusion imaging (Phase III).

[Thoratec] sells [International Technidyne] for $55mm in cash

Mon, 01 Nov 2010 00:00:00 -0400

[Thoratec Corp.] (advanced-stage heart failure devices) has sold [International Technidyne Corp.] (ITC; hemostasis management and point-of-care (POC) testing products) to an affiliate of Warburg Pincus for $55mm in cash. Thoratec is divesting the division--for which it paid $30mm in 1991--to focus resources on the {HeartMate} left ventricular assist system. Thoratec had tried to sell ITC to [Danaher] earlier this year for $110mm plus $26mm in earn-outs, but that transaction fell through after the companies could not agree on portions of ITC's quality system and regulatory filings. (ITC was delayed in launching the {ProTime InRhythm} in the US because the FDA did not clear the initial 510(k) submission.) ITC has been in the POC market for about 40 years; it markets the {ProTime} microcoagulation system; the {HgbPro} hemoglobin testing system; {Hemochron} coagulation testing instruments and reagents; the {IRMA TruPoint} blood analysis system; {Avoximeter} CO-oximetry devices and cuvettes; and {Tenderfoot}, {Tenderlett}, and {Surgicutt} skin incision devices. ITC has been integrated with [Nexus Dx Inc.], a POC clinical diagnostics company formed last year by Bay City Capital. Jim Merselis will lead the combined entity, which is projected to have annual revenues of about $100mm. Within the last year-and-a-half Nexus has completed two other transactions: the purchase of Nanogen's POC cardiac marker assets (via bankruptcy proceedings), and the September 2009 merger with HX Diagnostics.

[OncoVista] divests [AdnaGen]

Mon, 01 Nov 2010 00:00:00 -0400

[OncoVista Innovative Therapies Inc.] (cancer biomarkers and personalized therapeutics) is selling the 78% that it owns of its [AdnaGen AG] (mainly biomarkers) subsidiary to investment holding company Alere Holdings Bermuda Ltd. Canon's Court. OncoVista gets $10mm up front, $10mm in potential milestones based on balance sheet objectives over the next two years, and up to $63mm in development, regulatory, and sales-based earn-outs within three years. OncoVista is divesting AdnaGen for the cash, which will be used to further develop the cancer drugs in its pipeline. OncoVista acquired a 51% stake in AdnaGen in 2006, and had owned 95% up until last year, when it sold off some shares to creditors, bringing its stake down to 78%. AdnaGen's products include {AdnaTest CancerSelect} and {AdnaTest AdnaCollect} lines for colon, breast, and prostate cancer diagnoses. The diagnostics, which are CE-certified but not yet approved in the US, detect circulating tumor cells in the blood, and in addition to early diagnosis, are used to monitor and predict therapeutic response.

[Eli Lilly] to buy [Avid] for $300mm up front plus earn-outs

Mon, 01 Nov 2010 00:00:00 -0400

[Eli Lilly & Co.] has agreed to pay $300mm up front to acquire privately held [Avid Radiopharmaceuticals Inc.], a developer of molecular imaging agents that detect and monitor various diseases. Lilly could also pay up to $500mm in regulatory and commercialization earn-outs based on the progress of Avid's lead radiopharmaceutical florbetapir F18, which is exclusively licensed to [Bayer Schering Pharma] and awaiting FDA approval as a new way to detect the presence of beta amyloid plaques in the brain and diagnose Alzheimer's disease. Currently the only conclusive tests for AD are performed post-mortem. Avid's technology, used with positron emission tomography, finds beta-amyloid deposits in living patients, allowing for the early diagnosis and treatment of the disease. In addition to florbetapir (which Lilly has used with permission from Avid in prior clinical trials for its own drugs in development), Lilly also gains access to Avid's other diagnostic projects for conditions including Types I and II diabetes and Parkinson's disease. Post-acquisition, Avid will continue to operate out of its Philadelphia, PA, offices and will support ongoing clinical trials. Lilly has raised industry eyebrows through its offer for Avid, both in terms of the high price it is willing to pay (unusual for a diagnostics company that doesn't have a marketed product), and its signal that it is moving into the testing arena. The Big Pharma is still reeling from the decision to end development on its Phase III Alzheimer's candidate semagacestat, and is also facing the loss of patent protection on two big revenue-earners ({Zyprexa} for schizophrenia and {Cymbalta} for depression). Both are valid reasons why Lilly is looking to boost both its potential product offerings and its development support through the purchase of Avid. Avid, founded in 2004, has raised $69mm from a syndicate of investors that includes Safeguard Scientifics, which has invested $12mm in Avid over the years and stands to receive about $36mm in its exit through the acquisition.

[GE] to buy [Clarient] for $587mm

Fri, 01 Oct 2010 00:00:00 -0400

[GE Healthcare] has signed a definitive agreement to acquire public molecular diagnostics firm [Clarient Inc.] The deal is valued at about $587mm, with GE paying $5 in cash for every common share outstanding (a 39% premium) and $20 for each preferred share. Clarient, which was formed in 1996 as MicroVision Medical Systems and later named ChromaVision Medical Systems, originated as a digital microscope and cellular imaging company. With direction from its majority investor Safeguard Scientifics (which at one point owned more than 60% of the company, but now holds 26%), Clarient shifted its focus to cancer diagnostics and sold its main product line {ACIS} and all associated imaging equipment to [Carl Zeiss] in 2007. Clarient then began in-licensing and acquiring products to build its operations as a leading molecular diagnostics company, and saw revenues increase dramatically (from $43mm in 2007 to $91.6mm in 2009). Its offerings now include biomarkers and tests that can characterize and classify different types of cancer--including prostate, breast, lung, colon, and blood cancers--at early stages to help physicians make better informed decisions about patient care. Just last year, the company bought [Applied Genomics], a deal that gave Clarient one of its now-lead products--the lung cancer immunohistochemistry panel {Pulmotype}. Clarient's portfolio also includes flow cytometry systems, PCR and fluorescent in situ hybridization tests, and companion diagnostics for oncology therapeutics. GE Healthcare looks forward to expanding its diagnostics business into cancer through the current acquisition, hoping to boost revenues and profit that took a hit in 2009 (decreases of 8% and 15%, respectively). As part of the transaction, Clarient investor Safeguard will receive $145mm of Clarient's take-home.

[Volition] buys [ValiBIO] from [ValiRx] for $1mm

Wed, 01 Sep 2010 00:00:00 -0400

[ValiRx PLC] has divested its [ValiBIO SA] diagnostics division to fellow cancer test developer [Singapore Volition Pte. Ltd.] for $1mm, of which $400k will be paid in cash (in four equal installments) and the remainder in Volition shares. ValiRx has also entered into a consultancy and services agreement with Volition, for which it will receive IP management revenues and funds from other technical functions. ValiBIO, formed in July 2007, is based in laboratories at the [Institut de Pathologie et de Genetique]. The company--which reported a 2009 loss of €385k on turnover of €23.9k, with liabilities of €805k--has been developing three cancer diagnostics: {Nucleosomics}, which detect the presence of epigenetic alterations in the nucleosomes of a patient's blood; {Hypergenomics} tissue biopsies that look for epigenetic changes in chromatin structure (hypersensitive sites); and HPV tests. Under a 2008 global (excluding Belgium) agreement, [Biofield] is distributing the three products. (At the time, Biofield acquired a 10% stake in ValiBIO for €600k and was granted the option to buy another 15% of the company before January 1, 2012.) Under terms of the current acquisition, ValiRx keeps technology rights to products in development, including the HPV test, and it can use the platforms for diagnostic and prognostic companion tests for the {GeneICE} program (which controls unruly genes) and related applications. ValiRx's COO, Dr. George Morris, will become Volition's CEO and remains on ValiRx's board. ValiBIO's CEO will step down to technical officer. ValiRx is selling the business to focus on its core cancer therapeutics and diagnostics, and to eliminate expenses.

[LabCorp] to pay $925mm cash for [Genzyme Genetics]

Wed, 01 Sep 2010 00:00:00 -0400

[Laboratory Corp. of America Holdings] is acquiring esoteric testing specialist [Genzyme Genetics] for $925mm in cash. The deal includes testing services, technology, and IP. All of Genzyme Genetics' 1,900 staff members, including senior management, will continue their employment. The company offers services spanning maternal serum screening, prenatal and postnatal diagnostics, carrier screening, and clinical trials central lab testing. The company's nine laboratories perform over 1.5 million tests annually. Genzyme Genetics posted 2009 revenues of $371mm. LabCorp chose to buy the company to expand its own offerings in the areas of reproductive, genetic, and cancer testing, as well as focus on key areas of growth such as esoteric testing and personalized medicine. The transaction comes just a few months after [Genzyme Corp.] announced plans to restructure and divest certain units--diagnostics and pharma intermediates--to concentrate on orphan drugs. Analysts speculate that the current divestiture could prompt [Sanofi-Aventis] to up its $69/share bid for Genzyme.

[Ventana] pays $100mm for digital pathology firm [BioImagene]

Sun, 01 Aug 2010 00:00:00 -0400

Supporting its personalized medicine efforts, [Ventana Medical Systems Inc.], a division of [Roche Diagnostics], has paid $100mm for private digital pathology company [BioImagene Inc.] BioImagene, which was established in 2003 and has raised at least $35mm in venture financing, targets the anatomic pathology laboratory market with technologies for reviewing digitized images. The company greatly improved its image analysis assets when it merged with Scimagix in 2004, and is well known for its {iScan} product--slide scanners that create high-resolution digital images of lab samples on glass microscope slides. BioImagene also sells {Virtuoso} data management software used by pathologists for image archiving, retrieval, and sharing, plus {Companion Algorithms}, which are image analysis algorithms for several cancer types--including breast and prostate--that help health care professionals interpret digital images of molecular diagnostics. The deal will broaden Ventana's portfolio, allowing the company to expedite the analysis of tissue biopsies used in developing cancer tests. The acquisition comes only a few months after Ventana agreed to work with [Clovis Oncology] on a companion diagnostic for the latter's pancreatic cancer candidate gemcitabine.

[Life Technologies] buys [Ion Torrent] for $375mm

Sun, 01 Aug 2010 00:00:00 -0400

[Life Technologies Corp.] is acquiring private DNA sequencing firm [Ion Torrent Systems Inc.] for $375mm in cash and stock. Ion could receive an additional $350mm in cash and shares should certain technical and time-based milestones be met through 2012. The breakdown of the cash versus stock was not disclosed. Three-year-old Ion Torrent uses semiconductor sequencing chips to establish a direct link between chemical and digital information. Its technology measures the release of hydrogen ions as nucleotides get incorporated by DNA polymerase. Ion Torrent's {PostLight} instrument is faster, more cost effective, and less complex than extended optical detection, which is currently utilized in all other sequencing platforms. Its first product to incorporate the technology, the {Personal Genome Machine}, is geared towards mid-scale projects such as targeted and microbial sequencing, as opposed to whole-genome sequencing. A commercial launch is expected later this year. Life Technologies believes that Ion Torrent's assets are a good fit with its own capillary electrophoresis and {SOLiD} sequencing platforms. Ion Torrent's current founder and CEO, who also created [CuraGen], [454 Life Sciences], and [RainDance Technologies], will retain his position. Ion Torrent will continue operating out of its Connecticut and California locations. Other recent transactions in the fast-growing market for human genome sequencing technology include proposed IPOs by [Pacific Biosciences] and [Complete Genomics].

[Sanofi] launches $69 per share bid for [Genzyme]; $17.5bn value

Sun, 01 Aug 2010 00:00:00 -0400

Confirming speculation that began over a month ago, [Sanofi-Aventis] has made public a non-binding offer to acquire [Genzyme Corp.] The Big Pharma says it will pay $69 for each of Genzyme's outstanding shares, valuing the deal at about $17.5bn. Genzyme's board was quick to reject the offer, claiming that it dramatically undervalues the company. The per-share price is a 30% premium to Genzyme's ten-day market average prior to the July 23 media leak that a proposal was in the works. Sanofi formally (but quietly) approached Genzyme in late July and was rejected then also, but only now has made its desires public in hopes of luring Genzyme shareholders. Genzyme's 2009 revenues were $4.5bn with net income of $422mm, and the company reported $682mm in cash and equivalents on June 30, 2010. Its focus is on rare disorders as well as kidney disease, orthopedics, oncology, transplantation, and immune conditions. Genzyme's lead products (by 2009 revenues) were {Cerezyme} for Gaucher disease ($793mm), {Sevelamer} for renal disease ($707mm), and {Fabrazyme} for Fabry disease ($329mm). Numbers for {Cerezyme} and {Fabrazyme} would have undoubtedly been higher had Genzyme not ceased production on the products (and sold mainly from inventory) for a six-week period following discovery of bacterial contamination at the company's Allston, MA manufacturing plant. Rumors hold that this series of events made Genzyme a hefty M&A target, though the company is assuring the public and shareholders that production has resumed on both brands and that while levels will not be back to normal immediately, supply is increasing and problems have been resolved. Sanofi believes that its purchase of the biotech could help Genzyme recover from its downfalls faster and provide it with immediate cash. Noting the importance to Genzyme of its rare disease business, Sanofi has proposed a stand-alone Genzyme-branded division, with its own R&D, manufacturing, and sales activities. The deal could give Sanofi a stronger presence in orphan diseases, a business that currently accounts for a large portion of Genzyme's activities. In addition to the marketed products, Sanofi would also take on Genzyme's development pipeline. It is especially drawn to the late-stage candidates {Campath} for multiple sclerosis and mipomersen for high cholesterol. Sanofi does not seem interested in budging on its price for Genzyme, but analysts wonder if the approaching patent cliff (for its blockbuster drugs {Lovenox} and {Plavix}) will be enough of a scare for the Big Pharma to increase what it is willing to pay. As of press time, no white knights have emerged or been rumored to exist.

[PerkinElmer] buys molecular imaging technology company [VisEn]

Thu, 01 Jul 2010 00:00:00 -0400

To expand its cellular imaging business, [PerkinElmer Inc.] has acquired privately held in vivo molecular imaging technology company [VisEn Medical Inc.] PE will pay a total of $23mm in cash for all outstanding VisEn shares: $18.2mm at closing and an additional $4.8mm held in escrow to cover potential VisEn indebtedness, working capital, and indemnification. PE expects the purchase will expand its capabilities in preclinical research allowing it to provide a broader portfolio of chemistries, detection and imaging solutions, and services to the global research and drug discovery communities. Earlier this year VisEn bought [Bayer]’s fluorescence imaging patents, enlarging its portfolio to more than 150 global patents and patent applications. The deal gave VisEn a top spot in the fluorescence in vivo imaging market enabling it to offer technologies and services ranging from preclinical agents to clinical molecular diagnostics. Since 2004, the company has partnered with [Merck] its {Fluorescence Molecular Tomography} ({FMT}) platform, which noninvasively visualizes and characterizes disease markers and can predict efficacy of drugs in vivo. VisEn will become part of PE’s bio-discovery business, which focuses on life sciences and is already well known within the imaging market with offerings such as live cell imaging, fixed-cell imaging, high-content screening, and data analysis and management.

[Illumina] buys [Helixis] for $70mm plus earn-outs

Thu, 01 Jul 2010 00:00:00 -0400

Life sciences company [Illumina Inc.] has acquired privately held molecular diagnostics start-up [Helixis Inc.] for $70mm in cash up front and an additional $35mm in potential earn-outs. Formed in 2007 based on IP from the [California Institute of Technology], Helixis brought in about $17mm in venture funding since inception. The company, whose board included Illumina CEO Jay Flatley, was created around the notion that it could design a real-time quantitative PCR technology that would be more accessible to the everyday researcher than current systems. Helixis developed the {Pixo} platform, which Illumina is launching as the {Eco} real-time PCR. {Eco} is designed to perform with higher accuracy, speed, and consistency over standard PCR machines. At $13.9k apiece, the benchtop platform costs about a quarter of the price of systems offered by PCR competitors including [Roche], [Bio-Rad], and [Life Technologies]. Following the acquisition, Helixis was absorbed into Illumina and its CEO took an SVP position with the combined entity.

Investment firm Ramius attempts to buy [Cypress Bioscience]

Thu, 01 Jul 2010 00:00:00 -0400

Affiliates of Ramius LLC, an investment management firm owned by Cowen Group, have made an unsolicited offer to acquire the 90.1% of publicly traded [Cypress Bioscience Inc.] (rheumatoid arthritis diagnostics and CNS drugs) that it doesn't already own for $138.3mm, or $4 per share (an 80% premium). Cypress is asking shareholders not to take any action at this time. Ramius says it's willing to allow Cypress management to stay on to develop the schizophrenia treatment CYP1020 (formerly BL1020)--licensed from [BioLineRx] last month--and fund the Phase IIb program themselves or via a third party. This structure would give Cypress execs and the financial backers 50% of the asset, and Cypress shareholders the rest, providing shareholders with both a cash exit and an interest in the drug candidate. One of Cypress' largest stockholders, Ramius has stated it is unhappy with the way the business has been run by the company's management and board, claiming that Cypress' risky dealmaking and its desire to become a commercial operation have diminished shareholder value. Cypress was founded in 1981 as Imre and over the years has shifted focus among many therapeutic areas including immune disorders, blood clotting (through the 1996 acquisition of PRP), and pain. In 2008, Cypress ventured into personalized medicine when it bought diagnostic services firm Proprius--a transaction that Ramius calls a

[Trinity Biotech] sells coagulation business to [Stago] for $90mm

Sat, 01 May 2010 00:00:00 -0400

[Trinity Biotech PLC] (reagents and instruments for point-of-care and laboratory diagnostics) has sold its global coagulation operations to [Diagnostica Stago] for $90mm. Of the total, $67.5mm was paid up front, and two payments of $11.25mm each will be made on the first and second anniversaries of the deal closing. The divested business is made up of test kits and instruments to diagnose blood coagulation and clotting disorders, and includes the {Destiny MAX} instrument, an FDA-approved and CE-Marked high-throughput hemostasis analyzer, as well as the {Trini} line of blood disorder assays. ({Trini} is the name given to the group of products consolidated by Trinity in the last couple of years; individually, the lines were previously known as {Biopool}, {Amax}, and {Destiny}.) Through the deal, Stago gains 320 Trinity employees, all active pertinent supply contracts, and a manufacturing facility in Germany. The company already has a staff of 1500 and markets its own hemostasis and thrombosis reagents and tests in over 110 countries. Following the sale, Trinity retains rights to the point-of-care segment of the coagulation business. It also plans to more effectively focus development efforts on its infectious disease POC testing (STDs, enteric, and respiratory diseases) and HbA1c diagnostics.

[PerkinElmer] pays $90mm for [Signature Genomic Laboratories]

Thu, 01 Apr 2010 00:00:00 -0400

[PerkinElmer Inc.] has agreed to pay $90mm in cash to acquire privately held genetic testing company [Signature Genomic Laboratories LLC]. SGL was formed in 2003 to analyze chromosomal abnormalities in people with undiagnosed physical and developmental disabilities. The company was the first to provide testing of this sort when it launched the {SignatureChip} cytogenic system, an oligonucleotide-based microarray that detects genetic abnormalities consistent with over 200 syndromes in both pre- and post-natal cases. Through the acquisition, PerkinElmer will add to its existing lines of prenatal diagnostics and strengthen its cancer testing business, as SGL recently broadened the scope of its {SignatureChip} systems to include genetic tests for leukemia. Venture financing dollar amounts are unavailable for SGL, but its primary investors include Ampersand Ventures, jVen Capital, and co-founders Pathology Associates Medical Laboratories and Providence Sacred Heart Medical Center & Children's Hospital.

[ExonHit] pays $22.5mm up front for [RedPath]; terminated

Thu, 01 Apr 2010 00:00:00 -0400

[ExonHit Therapeutics SA] (molecular diagnostics and treatments for cancer and CNS diseases) has agreed to acquire privately held US cancer testing company [RedPath Integrated Pathology Inc.] for $12.5mm in cash and $10mm in stock. An additional sales-based earn-out of up to $9.5mm is also possible beginning in 2012. RedPath's flagship product is the {PathFinderTG} molecular DNA cancer test that combines genetics and pathology to provide analysis of hard-to-diagnose tumors. It can help physicians distinguish between malignant and benign tumors, as well as metastatic and recurrent cancers. The diagnostic has been launched for pancreatic cancer, and is in late-stage development for other organs. Through the acquisition, ExonHit will benefit from RedPath's US presence and also sees strong synergy between RedPath's offerings and its own {AclarusDx} RNA-based biomarker identification platform. RedPath, which will retain its employees and current operations, will use the proceeds from the transaction to expand its Pittsburgh, PA facilities and hire more staff. RedPath's president and CEO will become the head of ExonHit's global diagnostics division following the closing of the acquisition.

[VaxGen] buys [diaDexus] in reverse merger

Thu, 01 Apr 2010 00:00:00 -0400

Public cardiovascular therapeutics company [VaxGen Inc.] has agreed to acquire closely held [diaDexus Inc.] (cardiovascular disease diagnostics) in a reverse merger. VaxGen will issue 51.6mm common shares valued at $20.6mm; diaDexus shareholders will then own 60.9% of the combined company. The newly merged company will retain the diaDexus name and be run by diaDexus' current leadership team. VaxGen has stopped its infectious disease drug development programs, but continues to run a manufacturing facility in South San Francisco that produces cell cultures and microbial biologics. At the end of 2009, it had three employees and $32.3mm in cash on hand. The merger with diaDexus comes just two years after VaxGen called off its reverse merger with [Raven Biotechnologies]. DiaDexus has created the FDA-cleared {PLAC} test to assess the risk of coronary heart disease and ischemic stroke. The company will use the money from the merger (in addition to $170mm it has already brought in through five venture rounds) to ramp up {PLAC} marketing efforts.

[Danaher] buys [ITC] from [Thoratec] for $110mm; terminated

Thu, 01 Apr 2010 00:00:00 -0400

[Thoratec Corp.] has agreed to sell its [International Technidyne Corp.] division (point-of-care diagnostic devices) to [Danaher Corp.] (medical instrumentation) for $110mm in cash. Shareholders may also receive a $26mm earn-out (paid over a three-year-period) based on sales of ITC's alternate site business unit. After picking up ITC for $30mm in 1991, Thoratec is now divesting the company to focus on its ventricular assist devices, including the {HeartMate II} bridge-to-transplantation device. ITC, which has seen sales shrink 5% to $94mm for 2009, hopes to launch a new {ProTime InRhythm} microcoagulation device in the upcoming months. For years it had been selling {ProTime} microcoagulation system POC models with Sulzer Carbomedics to test blood clotting activity in mechanical heart valve patients that take oral anticoagulant medicines. Once launched, the new device joins ITC's already-marketed offerings: the {IRMA TruPoint} blood analysis system (gained through the 2003 acquisition of Diametrics Medical's intermittent testing business unit), {Hemochron} coagulation instruments and reagents, the {Avoximeter} whole blood oximeter, and the {HgbPro} hemoglobin testing system. ITC also markets the skin incision devices {Tenderfoot} (to obtain blood from infants' heels), {Tenderlett} (blood samples from adults) and {Surgicutt} (to screen for platelet function). The ITC transaction fits nicely with Danaher's strategy of increasing its instrumentation offerings: since the end of last year, it has acquired AB Sciex, Molecular Devices Corp., and [Genetix Group PLC].

[Nipro] to pay $11.50 per share for [Home Diagnostics]

Mon, 01 Feb 2010 00:00:00 -0500

Japanese company [Nipro] (medical devices, drugs, and non-medical glass products) has agreed to pay $11.50 per share (an 86% premium) or about $195mm to buy fellow public firm [Home Diagnostics], which offers diabetes testing supplies. Under certain circumstances, Nipro can exercise a

[Vivalis] acquires antibody producer [Humalys SAS]

Fri, 01 Jan 2010 00:00:00 -0500

In an effort to broaden its product offerings and improve its bottom line without elevating its risk, [Vivalis] (vaccines and proteins for viral diseases) has acquired fellow French biotech [Humalys SAS], which was founded just three years ago to develop {Humalex}, a technology that identifies and generates human monoclonal antibodies against a therapeutic target or for a diagnostic purpose. In a stock swap through which it will acquire 100% of Humalys shares, Vivalis will pay €10.4mm ($14.9mm), €3.6mm upon closing and the remainder in several installments. Over a 15-year period Humalys also stands to get up to €15 million more in milestone payments related to future third-party licensing agreements Vivalis signs for {Humalex}. This platform isolates MAbs from human B lymphocytes that have been selected from donors for targeted pathologies including viral and bacterial; so far it has demonstrated potential against infectious and autoimmune diseases. Vivalis hopes to extend this reach to cancer, inflammatory, or degenerative diseases. This transaction supplements Vivalis' {EB66} duck embryo-derived cell line for vaccine and protein production, enables the company to add complementary services to its existing customer offerings, and expands prospective licensing possibilities. Vivalis, which already has more than 20 deals for its {EB66} platform, hopes to sign a licensing agreement involving {Humalex} within the next 18 months.

[QuantRx] ends deal to buy JV partner [NuRx]

Fri, 01 Jan 2010 00:00:00 -0500

Building on the success of a joint venture started by the companies last year, [QuantRx Biomedical] (rapid diagnostics) will acquire public cancer company [NuRx Pharmaceuticals] in an all-stock deal valued at about $14.8mm. For each share held, NuRx shareholders will receive 1.54 shares of QuantRx common stock, resulting in the issuance of about 36.1mm new QuantRx shares. NuRx, which has been operating without revenues since 2006, was formed in 2001 as Quest Group International, a company focused on the sale of nutritional products. In 2007, it spun off the nutritionals business and entered into an agreement with [Vitae Pharmaceuticals] that gave Quest rights to a nuclear receptor technology (originally in-licensed by Vitae from [Allergan] and [Ligand] in 2004) for the development of cancer therapeutics. Two years later, after Quest changed its name to NuRx, the company turned an important business corner when it decided to expand beyond just pharmaceuticals into the point-of-care testing space and formed a joint venture with new partner QuantRx. NuRx funded the newco, [QN Diagnostics], with $5mm, and owned 50% of the entity. QN has since successfully developed QuantRx's {RapidSense} rapid testing products base on a lateral flow strip technology, and following the acquisition, will be 100% owned by QuantRx. Earlier this year, in an effort to focus mainly on diagnostics, NuRx terminated its relationship with Vitae and ended a co-development agreement with [Piramal] surrounding NuRx's lead Phase II leukemia compound NRX5183, effectively exiting the drugs market. The proposed combination with QuantRx will now allow the companies to continue bringing forward a strong point-of-care diagnostics business while at the same time saving about $1mm in general corporate costs. The merged entity will operate under the direction of QuantRx's current CEO and CFO, while NuRx's president and CEO will become executive chairman at QuantRx.

[Martek] acquires [Amerifit Brands] for $200mm in cash

Fri, 01 Jan 2010 00:00:00 -0500

[Martek Biosciences] (nutritional oils) has agreed to buy [Amerifit Brands] (consumer health products) for $200mm in cash. The deal brings a nice return for PE firm Charterhouse Group, which purchased Amerifit in 2005 for about $80mm. The acquisition marks Martek's shift from strictly an omega-3 DHA ingredients company into the consumer marketing arena. Up to this point, Martek has dominated the DHA market; it began supplying DHA and ARA (arachidonic acid) to infant formula makers in 1994. Today about 99% of formula in the US contains Martek's DHA, sold as {life'sDHA}. {Life'sDHA} and {life'sARA} are supplied to manufacturers such as [Mead Johnson], which has a long-term exclusive contract set to expire later this year. Amerifit provides Martek with an existing sales team, through which it plans to launch some new products--including geriatric, cardiovascular, and joint health DHA nutritionals--in the upcoming months. Twenty-five-year-old Amerifit reported $81mm in 2009 sales. Its products include {AZO} for detection and relief of urinary tract infections as well as prevention and treatment of yeast infections, {Culturelle} probiotic supplement, {Estroven} for menopause symptoms, {Cardiostat} omega-3 to promote heart health, and {Vitaball} vitamins for children.

[Life Technologies] buys [AcroMetrix] for undisclosed sum

Fri, 01 Jan 2010 00:00:00 -0500

[Life Technologies] is acquiring private diagnostics firm [AcroMetrix] for an undisclosed amount. AcroMetrix provides clinical laboratories, blood screening centers, and in vitro diagnostic manufacturers with molecular and serological diagnostics for quality control. Such products enable researchers to maintain accurate lab results more efficiently and cost effectively. Product lines include {OptiQuant}, {OptiQual}, and {ValiQuant} panels to assess molecular testing procedures for various types of viruses. The transaction further strengthens Life Technologies' existing molecular diagnostics offerings, including magnetic beads, fluorescent dyes, and antibody screening systems, which generate about $300mm in revenues each year. The company hopes to become the leading provider of IVD technologies and products.

[Inverness] buys 76% of [Standard Diagnostics] for KRW242bn

Fri, 01 Jan 2010 00:00:00 -0500

[Inverness Medical Innovations] has agreed to acquire 75.79% of public South Korean firm [Standard Diagnostics] for approximately KRW242bn ($215.6mm) in cash, or KRW40k per share. Post-acquisition, Standard Diagnostics' current president and CEO Young Shik Cho, PhD, will remain in the same position. The transaction comes several months after Inverness disclosed in an SEC filing that it would make an unsolicited offer for 40% of Standard for KRW30k, KRW10k less than what it is tendering in the current deal. (That initial tender offer expired on August 24, 2009.) Standard Diagnostics was founded in 1999 and completed its IPO on Korea's Kosdaq exchange four years later. It is known for its rapid diagnostic offerings, which span infectious diseases including dengue fever and STDs; different types of cancer; fertility; and drugs of abuse. The company also sells infectious disease ELISA kits; urine analysis readers for diabetes and kidney, liver, and urinary tract infections; glucose monitoring systems; and diagnostic reagents including antigens and antibodies used in quantitative detection of biomarkers. In 2008, Standard Diagnostics reported $36.8mm in revenues. Gaining a majority stake in Standard Diagnostics furthers Inverness' worldwide expansion. Other international acquisitions that Inverness has done recently include [Concateno PLC], a UK-based firm that makes drugs-of-abuse tests, Australian infectious disease-focused [Panbio], and POC testing producer [Epocal], which is located in Canada.

[DeCode genetics] bought by consortium of private investors

Fri, 01 Jan 2010 00:00:00 -0500

After filing for bankruptcy at the end of 2009, [deCode genetics] (DNA tests and personal genome scans) has sold its [deCode genetics EHF] subsidiary and its drug discovery programs to Saga Investments (a consortium that includes original investors Polaris Ventures and ARCH Venture Partners), which is rescuing the debt-heavy company. DeCode genetics Inc. changed its name to DGI Resolution Inc., which will liquidate. A planned asset auction was cancelled after no bidders came forward. Instead, the company will be purchased for about $14mm, including $10.9mm from a November 2009 debtor-in-possession loan (to move the company through bankruptcy)--most of which has already been spent, plus $3mm in cash. Included with the assets are three drug candidates--Phase II DG051 to prevent heart attack, Phase III DG041 for arterial thrombosis, and IND-filed DG071 for prevention of memory loss in early Alzheimer's disease patients. DeCode retains a 25% stake in the compounds if Saga should sell or license them within two years and holds a 15% nonvoting junior convertible preferred stake in Saga. DeCode will continue to use records of the Icelandic population to focus on genetics research and gene-based diagnostics under the guidance of Earl Collier (a former [Genzyme] EVP and deCode board member) as CEO and deCode founder Kari Stefansson as executive chairman and president of research. DeCode has created tests--including the {deCODEme Complete Scan}--to assess the genetic risks for Type II diabetes, breast and prostate cancers, glaucoma, and myocardial infarction. The company abandoned drug development activities derived from its genetic discoveries. Its past research was able to link genes associated with conditions such as schizophrenia, cancer, and heart disease, but the company ran out of money before it could produce a profitable therapeutic.

[Quidel] purchases [Diagnostic Hybrids] for $130mm in cash

Fri, 01 Jan 2010 00:00:00 -0500

Point-of-care-testing company [Quidel] is paying $130mm in cash to acquire private in vitro diagnostics developer [Diagnostic Hybrids]. Diagnostic Hybrids will become a Quidel subsidiary, with its current president and CEO David Scholl, PhD, staying on as president and joining Quidel as an SVP. Diagnostic Hybrids is a leading supplier of genetically engineered tissue cell cultures, direct fluorescent in vitro diagnostic assays, monoclonal antibody test kits, and biological reagents used in assessing various thyroid conditions and viral infections such as viral respiratory disease, herpes, and chlamydia. The transaction is a good fit for Quidel, which offers tests mainly for influenza and sexually transmitted diseases. It believes the acquired technology will enable it to improve the sensitivity of its own {QuickVue} diagnostics. The majority of Quidel's revenues come from seasonal flu diagnostics but the company now hopes to rely less on this segment. Diagnostic Hybrids sells its products to hospital and reference labs, a customer base in which Quidel seeks to rapidly expand. The acquired company reported revenues of $51mm in 2009, which was a 34% increase over the previous year.

[Danaher] pays £61.7mm for public image analysis firm [Genetix]

Fri, 01 Jan 2010 00:00:00 -0500

[Danaher] (industrial and medical instrumentation) has acquired publicly traded UK firm [Genetix Group PLC] for £61.7mm ($100.2mm). Danaher is paying £0.85 per share, a 38% premium. Established in 1991 and focused on the life sciences and diagnostics markets, Genetix provides cell image analysis (specifically selection of mammalian secretory cell lines and microbial colonies) used in drug discovery and clinical diagnostics development, as well as products for the research/analytical and digital pathology industries (the latter via the May 2009 acquisition of SlidePath). Genetix's 2006 landmark takeover of public imaging analysis specialist Applied Imaging--a deal that was finally completed after a competitive bidding process that saw Genetix up its share-price offer by 14% to value the transaction at $25.8mm--gave the company an entry into the genetic testing field. In 2008, Genetix realized £1.4mm in operating profit on £26.2mm in revenues. The current acquisition gives Genetix access to Danaher's much bigger cash reserves (on June 30, 2009, Genetix had £13.5mm in cash; in comparison, Danaher had $1.2bn on July 3, 2009) as well as a larger international presence. Additionally, Danaher will now be able to use Genetix's {Ariol} and SlidePath tissue quantification tool with the digital pathology scanner that was just launched by its optic solutions division [Leica].

[Inverness] signs definitive agreement to buy [Epocal]

Fri, 01 Jan 2010 00:00:00 -0500

[Inverness Medical Innovations] has signed a definitive agreement to buy point-of-care testing firm and new partner [Epocal]. The deal was announced in the same breath as an alliance between the two for the marketing of Epocal's {epoc} blood gas analyzer. The base price for the acquisition, $172.5mm, is contingent upon Epocal meeting certain gross margin and financial milestones by October 31, 2014. Additionally, Epocal could receive $82.5mm based on the achievement of further gross margin and product development goals. Epocal markets a diagnostic testing system based on {FlexCard} Smart Card technology. Its {epoc} ({enterprise point of care}) device is a bedside blood gas and electrolyte analyzer that produces results instantly, without the need for transmission to a separate laboratory. Inverness recently paid $20mm for co-exclusive worldwide rights to the system, and adds both the product and the company as a whole to its growing POC testing business. Epocal was founded in 2001 and has raised over $38mm in venture financing.

[Clarient] buys [Applied Genomics] in all-stock deal

Tue, 01 Dec 2009 00:00:00 -0500

[Clarient] (cancer diagnostics) has acquired privately held oncology testing company [Applied Genomics] in an all-stock transaction that could be worth up to $17.9mm. Clarient issued 4.4mm of its common shares up front, valued at about $10.4mm based on market average, and could hand over an additional 3.2mm shares (worth $7.5mm) if certain clinical, sales, and revenue milestones are met. AG will operate as a Clarient subsidiary, retaining key staff and laboratory operations. The acquisition brings Clarient access to AG's new lung cancer immunohistochemistry (IHC) panel {Pulmotype}, which the companies anticipate launching during the first quarter of 2010. Clarient notes that adequate lung cancer classifiers such as {Pulmotype} take a long time to develop, and the company looks forward to adding the test to its coffers. Also part of AG's offerings are the {Mammostrat} breast cancer prognostic; {Mammotax}, a test to predict taxane therapy response; {Pulmostrat}, a seven antibody prognostic to categorize early-stage lung cancer risk; and other tests in development for ovarian and head and neck tumors. Clarient will benefit from AG's development engine made up of biomarkers, reagents, and custom tissue microarrays, and it may also investigate the integration of one of AG's breast cancer panels into a new version of Clarient's {InsightDx} breast cancer prognostic tool.

[Cell Biosciences] to acquire [Protein Forest] for $5.25mm in stock swap

Tue, 01 Dec 2009 00:00:00 -0500

Protein analysis company [Cell Biosciences Inc.] has acquired privately held [Protein Forest Inc.] (proteomics tools) for $5.25mm in Series E preferred shares in exchange for Protein Forest outstanding senior notes. Protein Forest markets instrumentation, software, reagents, and consumables for proteomics research. The company, which was founded in 2002, recently penned a deal with [Pressure BioSciences] to co-market its sample preparation tools. {ProteomeChip}, Protein Forest’s digital chip-based fractionation technology, is used to separate proteins or peptides in complex biological sample preparation prior to mass spectrometry analysis or Western blotting imaging. Cell Biosciences looks forward to adding a sample prep product line to its own nanoproteomics platform. To finance the transaction, Cell Biosciences completed a concurrent $4mm Series E financing round.

[Qiagen] buys [SABiosciences] for $90mm in cash

Sun, 01 Nov 2009 00:00:00 -0400

[Qiagen NV] will buy closely held PCR assay panel manufacturer [SABiosciences] for $90mm in cash. Qiagen says the acquisition will add $24mm in sales for 2010. Eleven-year-old SABiosciences has over 100 panels that are used in the analysis of DNA, RNA, epigenetic, and microRNA targets linked to cancer and cardiovascular, immune, metabolic, and other diseases. They help researchers examine pathways involved in apoptosis, signal transduction, and toxicology. Unlike other PCR companies, SABiosciences focuses on all pathways and the interactions of all genes that are linked to diseases. Its product offerings will enable Qiagen to expand molecular analysis-based clinical development involved in drug and diagnostic research. SABiosciences' panels will broaden Qiagen's diagnostic platforms for personalized care, including prevention of diseases and profiling to determine which patients are likely to experience certain conditions. The two companies' North American operations are in close proximity to each other, which should provide a smooth transition post-merger. Qiagen will make SABiosciences' Frederick, Maryland site into a Center of Excellence for biological content development and intends to expand the facility. This acquisition follows Qiagen's $95mm September buyout of [DxS], a company focused on molecular diagnostics for cancer. Both deals make Qiagen an attractive drug-diagnostic partner for pharma companies.

[Life Technologies] pays undisclosed sum for [BioTrove]

Sun, 01 Nov 2009 00:00:00 -0400

Further enhancing its PCR portfolio, [Life Technologies] is buying privately held [BioTrove] (offers instruments for gene and protein analysis) for an undisclosed amount. The companies have collaborated since 2007 when Life Technologies' [Applied Biosystems] subsidiary agreed to take over commercialization of BioTrove's {OpenArray} for genotyping applications. With the {OpenArray} platform, researchers can simultaneously perform over 3,000 assays, generating single nucleotide polymorphism or quantitative polymerase chain reaction data. The acquisition is yet another step Life Technologies is taking towards building a leading PCR business. Earlier this year the company acquired [Cytonix] to gain IP related to advanced microfluidics-based digital PCR technology. In September, it launched {MeltDoctor} high-resolution melt reagents for use in scanning DNA from various sample types to detect even the tiniest genetic variations. Concurrent with the acquisition, twelve-year-old BioTrove announced that it is spinning off a new independent company, [Biocius Life Sciences], to focus exclusively on its one other platform--the {RapidFire} high-throughput mass spectrometry system. BioTrove had filed for an IPO in April 2008 but withdrew the offering at the end of that year due to the poor economic climate. The company did however manage to raise an undisclosed amount of funds through an April 2009 Series C round.

[Becton Dickinson] buys [HandyLab] for $275mm

Thu, 01 Oct 2009 00:00:00 -0400

[Becton Dickinson] has acquired molecular diagnostics company [HandyLab] for $275mm in cash. The acquisition comes five months after an agreement between the parties that gave BD's cancer diagnostics division [BD Diagnostics-TriPath] exclusive rights to market pathogen tests that use HandyLab's {Jaguar} system, which incorporates clinical sample preparation, nucleic acid extraction, and microfluidic real-time PCR amplification and detection. By purchasing HandyLab, BD now gets {Jaguar} outright and will continue combining the system into its {GeneOhm} assays that detect hospital-acquired infection pathogens including methicillin-resistant Staphylococcus aureus, toxigenic Clostridium difficile, and vancomycin-resistant enterococcus. BD plans to market them as the new {BD MAX} system. Other HandyLab products include the {Lynx} automated nucleic acid extraction system and {Raider} microfluidic real-time PCR system.

[Gen-Probe] to buy [Prodesse] for $60mm plus earn-outs

Thu, 01 Oct 2009 00:00:00 -0400

Adding to its portfolio of nucleic acid diagnostics, [Gen-Probe] is acquiring private molecular diagnostics firm [Prodesse] for $60mm in cash, plus up to $25mm if financial and regulatory milestones are met in 2010 and 2011. Gen-Probe will fund the acquisition using its cash-on-hand, which was about $570mm at the end of June. Prodesse currently sells three FDA-approved molecular tests. Its {ProFlu+} assay can simultaneously detect and differentiate influenza types A and B and respiratory syncytial virus using a single sample. {ProFlu+} is the first approved real-time PCR test for respiratory viruses, and the only one for which the FDA does not recommend culture back-up. Prodesse also offers the {ProGastro} real-time molecular assay for detecting Clostridium difficile, and {Pro hMPV+} for human metapneumovirus. Its {ProParaflu} for diagnosing parainfluenza 1, 2, and 3 was submitted for FDA approval in April 2009. Gen-Probe will use its US, Canadian, and European sales team to co-promote Prodesse's products. The acquisition is expected to provide Gen-Probe with an additional $15mm in revenues next year. Earlier this year the company paid $130mm for public molecular diagnostics company [Tepnel Life Sciences].

[Qiagen] buys [DxS] for $95mm plus earn-outs

Tue, 01 Sep 2009 00:00:00 -0400

[Qiagen NV] (samples and assays for disease prevention, profiling, and personalized medicine) has acquired privately held UK molecular diagnostics firm [DxS] for $95mm, plus up to $35mm more in potential earn-outs. DxS has developed assays that allow for patient-specific drug response testing to improve therapeutic outcome. The company's focus is on cancer. It already has seven real-time PCR tests on the market, in addition to more in development and near market launch. DxS's {TheraScreen} companion diagnostics received the CE Mark, and are on track for PMA approval in the US in 2010. The tests detect EGFR and KRAS gene mutations, and will be marketed globally under an exclusive license signed last year with [Roche]. DxS is also working on {TheraScreen} tests for lead products of Big Pharmas including [BMS], [AstraZeneca], and [Boehringer Ingelheim]. The combined entity will have over 15 pharmaceutical company collaborations for the development and/or marketing of companion diagnostics for cancer. Qiagen notes that many of DxS's tests (those marketed and in development for B-RAF, PI3K, and BCR-ABL mutations) are compatible with Qiagen's existing products, including the {QIASymphony} automated RNA and DNA purification systems, and the {Rotor-Gene Q} rotary design real-time PCR cycler. Going forward, DxS's senior staff will join that of Qiagen's existing personalized healthcare business, and its Manchester, UK headquarters will be turned into a

[PerkinElmer] buys [Sym-Bio LifeScience] for $63.7mm in cash

Tue, 01 Sep 2009 00:00:00 -0400

To gain access to the rapidly growing diagnostics market in China, [PerkinElmer] is paying $63.7mm in cash to acquire [Sym-Bio LifeScience], a leading Chinese developer of diagnostic instruments and related reagents. Sym-Bio's products, which are aimed at infectious diseases, and the increased hospital presence will enhance PE's prenatal and neonatal screening business. The acquired company's portfolio includes microplate washers, sample pretreatment systems, and plate shakers, in addition to China's first time-resolved fluorescence (TRF) detection system and TRF in vitro diagnostic kit. By gaining Sym-Bio's Shanghai manufacturing facility, PE will be able to quickly and more easily expand its product offerings in China. This deal was penned on the same day that PE acquired [Surendra Genetic Labs]' prenatal and newborn screening laboratory in India.

[Thermo Fisher] pays €330mm for German IVD company [Brahms AG]

Tue, 01 Sep 2009 00:00:00 -0400

[Thermo Fisher Scientific] has acquired [Brahms AG] for €330mm ($470mm), paying four-and-a-half times what the private clinical diagnostics developer achieved in 2008 revenues. Thermo Fisher will pay 95% of the purchase price, including net debt and other liabilities (which Brahms says aren't that high), at closing (end of September) and the rest a year later. The deal significantly strengthens Thermo Fisher's presence in Europe--the life sciences giant will maintain Brahms' operations in Hennigsdorf, Germany, giving it European headquarters for its clinical diagnostics business. Brahms, which claims it's the third-largest German biotech, offers laboratory and point-of-care diagnostics in the areas of cancer; respiratory, cardiovascular, thyroid, and autoimmune diseases, and fertility and prenatal testing. The company's leading product and main growth driver is its assay for procalcitonin, a blood biomarker of sepsis, which provides early detection and can aid in monitoring treatment. In its pipeline, Brahms is developing new biomarkers of bacterial infections, cardiovascular disease, and Alzheimer's disease/dementia. A global firm with operations throughout Europe and the US and products sold in 65 countries, Brahms was formed in 1994 through the buy-out of Henning Berlin/Marion Merrell Dow's diagnostics division. The company generated €15mm in earnings last year. It's owned by management and financed by the VC firm HBM BioVentures, which as a result of the sale to Thermo Fisher will receive €84.1mm in net proceeds, a 21.6x return on its original investment. Brahms will operate within Thermo Fisher's specialty diagnostics business (part of the analytical technologies segment), which sells clinical diagnostic, anatomical pathology, and microbiology lab products.

[Medtronic] buys assets from [PreciSense AS]

Mon, 01 Jun 2009 00:00:00 -0400

In an effort to improve upon its existing diabetes business, [Medtronic] is buying all of [PreciSense AS]'s continuous glucose monitoring (CGM) assets for an undisclosed amount. PreciSense has a non-invasive system consisting of microcapsules that generate a fluorescence signal and a light-detecting unit. The device monitors glucose levels using fluorescence resonance energy transfer, which is directly related to the concentration of glucose in the skin. PreciSense's technology complements Medtronic's CGM portfolio, which includes next-generation insulin pumps, diabetes management software, and closed-loop systems including the {MiniMed Paradigm} insulin pump and real-time CGM system, which monitors glucose levels in patients and automatically delivers insulin when appropriate.

[Zila] and [Tolmar Holding] merge

Mon, 01 Jun 2009 00:00:00 -0400

Oral cancer diagnostics company [Zila] has signed a definitive agreement to merge with pharma manufacturer [Tolmar Holding]. Zila shareholders will receive $0.38 for each outstanding share (a 3% premium), valuing the deal at about $4mm. Tolmar will also take on $12mm of Zila's senior secured convertible debt at a discount. The combined company will take the Zila name, and Zila will no longer be a publicly traded company. Zila had 2008 revenues of $45mm on a loss of about $16mm and reported $3mm in cash and cash equivalents for the quarter ending April 30, 2009. The company's flagship product is {ViziLite Plus}, a device used to screen for oral abnormalities that could be indicative of cancer. {ViziLite Plus} is marketed by Zila in the US and Canada; [Panadent] holds rights to sell the product in the UK and Ireland, while [Dentaid] markets it in Spain, France, Germany, and Portugal. Zila also designs and sells a variety of periodontal products to dentists, including power brushes and ultrasonic scalers. The products complement Tolmar's dental offerings, which include {Atridox}, a local oral antimicrobial, and the {Atrisorb} line of bioabsorbable tissue regeneration barriers for periodontal surgical procedures.

[LabCorp] buys [Monogram Biosciences] for $107mm plus debt

Mon, 01 Jun 2009 00:00:00 -0400

[Laboratory Corp. of America Holdings] has initiated a tender offer to buy public personalized medicine firm [Monogram Biosciences], paying $4.55 per share (a 146% premium) for a total of $106.9mm, plus debt. The buyout should cost LabCorp about $155mm. The acquisition fits with one of LabCorp's priorities outlined for 2009, which is to advance its leadership in personalized medicine. In addition, LabCorp gains Monogram's expertise in infectious disease and cancer testing and companion diagnostics. Monogram's products include {Trofile} and {PhenoSense} HIV tests and {VeraTag} and {HERmark} cancer assays. The company's diagnostics are designed to help physicians identify patients who will benefit most from specific drugs. For instance, Monogram's {Trofile} assay finds patients eligible for [Pfizer]'s {Selzentry} HIV drug. For 2008, Monogram had $16mm in cash-on-hand and generated $62.2mm in revenues.

[Inverness Medical] signs preliminary deal to buy [Concateno]

Mon, 01 Jun 2009 00:00:00 -0400

[Inverness Medical Innovations] has proposed to acquire public UK drug and alcohol testing firm [Concateno PLC] for approximately £125mm ($203mm) in cash and stock. For each outstanding Concateno share (approximately 103.2mm total), IVI will pay $1.28 cash and issue 0.02 IVI common shares, resulting in $132mm in cash plus $71mm in stock (or 2.1mm IVI shares)--valuing each Concateno share at about $1.97, a 14% premium. Should IVI's stock price fluctuate so that Concateno would receive less than £1.20 per share, IVI would pay an additional £1mm in cash and issue 500k more shares (or the cash equivalent at its option). Whatever portion of the additional consideration not used would be paid to Concateno management. The acquisition most importantly makes IVI a key player in the European drugs-of-abuse testing category. After taking over several companies in 2007, including fellow public UK firm [Cozart], Concateno has emerged as the leading provider of drug and alcohol testing services in Europe. Concateno's most profitable business is laboratory products including test kits and reagents for global clinical diagnostics customers. The company, which also provides point-of-care and laboratory testing, finished off 2008 with £12.3mm in earnings on £47.5mm in revenues. It's been over two years since IVI went on a shopping spree for companies involved in the drugs-of-abuse testing market. Most remarkable of those deals was IVI's $1.4bn acquisition of [Biosite], in which it gained ownership of the {Triage} panel. IVI also did some smaller transactions in 2007 including buying [Redwood] and [First Check Diagnostics], and taking the majority stake in [Instant Technologies].

[Enzo Biochem] acquires [Assay Designs] for $12.2mm cash

Sun, 01 Mar 2009 00:00:00 -0500

[Enzo Biochem] has acquired privately held [Assay Designs] (research products) for $12.2mm in cash. Assay will become part of Enzo's gene analysis division [Enzo Life Sciences]. The transaction builds up Enzo's portfolio, fitting in nicely with the {Alexis} and {Biomol} brands, and helps Enzo better position itself in the diagnostics and scientific/medical research markets. Serving the biotech, pharma, and life science industries, Assay produces luminescent reagents as well as specialty immunological and biochemical protein detection kits--including eicosanoid, human and mouse cytokine, and nonradioactive Cox activity kits--that identify and quantify small molecules and proteins involved in inflammation, immunity, oxidative and cellular stress, steroid and hormone biology, cell signaling, and bioenergetics. The company's annual revenues surpass $11mm. The last time Assay made any waves in dealmaking was 2005, when it bought Stressgen Bioreagents from Ampersand Ventures. That acquisition brought Assay an additional line of heat shock proteins, plus ELISA kits, antibodies, recombinant proteins, and reagents.

[Lab21] buys [Biotec Laboratories]

Sun, 01 Mar 2009 00:00:00 -0500

[Lab21] has taken a majority shareholding stake in fellow private UK diagnostics firm [Biotec Laboratories], which specializes in infectious diseases such as tuberculosis. Biotec and its South African subsidiary (a JV with Cape Biotech Trust) will operate under Lab21. The deal allows Lab21 to strengthen its portfolio of infectious disease tests and immunodiagnostics and expand globally. Founded in 1993, Biotec has used its phage amplification technology to create rapid tests for detecting mycobacterium-borne diseases. Lab21 hopes to study phage amplification beyond the area of tuberculosis. Biotec's portfolio also includes stained bacterial antigen suspensions, ELISA kits, blood grouping reagents derived from monoclonal antibodies, culture media products, and rapid latex kits. The two firms have a previous partnership: Biotec gained distribution rights in 80 countries to various Lab21 diagnostics.

[Olympus] sells diagnostic systems unit to [Beckman] for $800mm

Sun, 01 Feb 2009 00:00:00 -0500

Bumping it up to the number three spot in the worldwide chemistry testing market, [Beckman Coulter] (clinical diagnostics and life sciences products) has acquired [Olympus]'s diagnostic systems business for $800mm. Beckman is funding the deal by separately completing a follow-on public offering and debt sale. Olympus may receive approximately $300mm (37.5% of the total) in Beckman common stock--based on the average price, this could translate into about 6.04mm shares. Beckman states that the acquired unit will increase the company's revenue by $500mm in 2010, and will produce $40-50mm in operating income. Olympus's diagnostic products, which brought in Y52.7bn ($531mm) in sales FYE March 2008, include automated chemistry analyzers and blood transfusion tests--the two main growth drivers of the business--as well as reagents and lab automation systems. While Olympus has been involved in clinical diagnostics for almost 40 years, it's decided to divest this group due to increased competition from existing and newer players, and M&A consolidation within the industry (with deals such as [Siemens]'s takeovers of Dade and Bayer Diagnostics). The present transaction, which is Beckman's first major acquisition since losing its $1.4bn bid for POC cardiovascular immunoassay company [Biosite] to [Inverness] in 2007, gives Beckman additional clinical chemistry offerings for its primary markets--hospital and university labs--and brings the company a broader set of customers for its 60-plus immunoassay test kits, allowing it to target both low- and high-volume immunoassay segments. In 2008, chemistry and clinical automation was Beckman's second-leading business, representing 29% of its revenues.

[Gen-Probe] to buy [Tepnel] for £92.8mm

Thu, 01 Jan 2009 00:00:00 -0500

[Gen-Probe] (nucleic acid diagnostics) has offered to acquire public molecular diagnostics company [Tepnel Life Sciences] for £0.27 ($0.39) per share in cash (a 39% premium), or about $130mm. The deal gives Gen-Probe an entry into the transplant typing and diagnostics market, which is estimated at about $260mm. Tepnel has human leukocyte antigen (HLA) products that are used to find matching tissue types between organ donors and recipients. The company also markets genetic tests for Down's syndrome, cystic fibrosis, and familial hypercholesterolemia, and has a pharmaceutical services division that performs method development and validation services, pharmacokinetics, microbiology analysis, and SNP genotyping. Tepnel had 2007 sales of $36mm. The acquisition marks the second time in a year that Gen-Probe is vying for a molecular diagnostics firm. In June 2008, it offered up $278mm for [Innogenetics], but was outbid by [Solvay].

[Sequenom] launches bid to acquire [Exact Sciences]; withdrawn

Thu, 01 Jan 2009 00:00:00 -0500

Genetic analysis company [Sequenom] has launched a hostile takeover of [Exact Sciences] (cancer diagnostics). Sequenom's initial all-stock bid of $1.50 in Sequenom shares per Exact share (a 138% premium over Exact's trading average; valuing the deal at about $41mm) was immediately rejected by Exact's board of directors. In June of last year, Exact contacted Sequenom to discuss acquisition possibilities, but further action had been kept quiet by both entities. Sequenom says it has chosen now to make a public offer for the company after speculation that Exact's board is pursuing transactions that might not be as beneficial to shareholders as Sequenom's offer. In that light, Sequenom has vowed that if Exact does in fact go through with any out-licensing or financial restructuring during the bidding period, Sequenom will withdraw its offer immediately. Exact focuses on noninvasive diagnostics for colorectal cancer. In 2001, the company granted [Laboratory Corp. of America Holdings] (LabCorp) an exclusive license in the US and Canada to all of its stool-based DNA screening technologies. A year later, Exact granted LabCorp exclusive rights to its {PreGen-Plus} test, and consequently relinquished all sales and marketing responsibilities to LabCorp. Exact's cancer assets are a perfect match for Sequenom, which offers its own DNA methylation products and tumor diagnostics. Sequenom hopes to develop Exact's businesses further and expand into noninvasive diagnostics for lung, gastric, and pancreatic cancers.

[Avacta], [Curidium] combine diagnostics IP in merger

Thu, 01 Jan 2009 00:00:00 -0500

Fellow public UK firms [Avacta Group PLC] and [Curidium Medica PLC] have agreed to merge, combining their resources to create a company that is strong in point-of-care diagnostics and pharmacogenomics tools. Avacta will offer 14.5 of its shares (worth about $0.03 apiece, a 16% premium) for each Curidium share, valuing the deal at about $8.8mm based on approximately 18.9mm in outstanding Curidium stock. The newly formed entity, which will be 75% owned by Avacta shareholders, couples Curidium's technical know-how in diagnostics development with Avacta's ability to commercialize products via its CRO business. Curidium, which was founded in 2001, brings several key assets including {PsychINDx}, a newly launched blood test that pharmacos can use during clinical trials to separate schizophrenia and bipolar patients into four subgroups based on gene expression. The diagnostic incorporates Curidium's {Homomatrix} analysis system, which features biomarker pattern recognition tools, mathematical algorithms, and customized statistical methods. Applying {Homomatrix} to Avacta's {Midas} rapid immunoassay system and breath-activated tests--developed initially for veterinary markets--could make these diagnostics appropriate for human use too. Avacta, a 2004 [University of Leeds] spin-off, also hopes to take advantage of Curidium's alliance with [Takeda], penned just over a year ago to focus on depression biomarkers. Public since 2006, Curidium didn't record any revenues in 2007 and suffered a net loss of £1.3mm. On June 30, 2008, it had cash and other financial assets worth £3.6mm. This same month, Avacta has also acquired the small CNS diagnostics company [Theragenetics Ltd.] (personalized medicine).

[Mediscience] merges with [SensiVida Medical]

Sat, 01 Nov 2008 00:00:00 -0400

[BioScopix Inc.] (division of publicly traded diagnostic imaging firm [Mediscience Technology]) has acquired [SensiVida Medical Systems], a privately held start-up developing minimally invasive diagnostic devices. Mediscience issued 33.3mm of its common shares, valued at about $2.3mm, for the company. SensiVida's CEO will take on the role of president and CEO of the merged company, while its CTO will add on the title of VP business development to his responsibilities. SensiVida has a microsystems-based platform that automates biosensing during testing and also focuses on minimizing patient discomfort. The company is developing tests, under nine exclusively licensed patents, for allergies, glucose monitoring, blood coagulation, tuberculosis diagnosis, and cholesterol monitoring. Mediscience and BioScopix add SensiVida's offerings to it own, which include cancer detection scanning and mapping programs, as well as a compact photonic explorer pill to diagnose cancer of the gastrointestinal tract.

[Clinical Data] buys [Avalon] for $10mm in stock

Wed, 01 Oct 2008 00:00:00 -0400

Personalized medicine firm [Clinical Data] has entered into a series of agreements that will ultimately end with the acquisition of public cancer therapeutics company [Avalon Pharmaceuticals]. Avalon reported 2007 revenues of $809k, with $28.5mm in cash and cash equivalents at the end of that year. The company brings a pipeline of mid-stage cancer candidates including its lead AVN944, which is in Phase II trials for pancreatic cancer and Phase I for hematological malignancies. Avalon also has its {AvalonRx} biomarker identification and molecular profiling technology for drug discovery and development, a platform that is at the center of various deals with large pharmacos including [Merck], [Novartis], and [AstraZeneca]. Under the terms of the acquisition, Clinical Data will issue about $10mm of its own stock (at a ratio of 0.047 Clinical Data share for every Avalon share, the result is 800k shares at $12.49 each) to buy all of Avalon's outstanding shares. Avalon stockholders will also receive contingent value rights, payable for up to $2.5mm in additional Clinical Data shares, following receipt of certain milestones Avalon might receive under its ongoing collaborations with Merck and Novartis. Also announced at the time of the acquisition are a private placement, where Clinical Data purchased 3.4mm Avalon shares at $0.07 each (a 15% discount) plus warrants for an additional 1.7mm shares at an exercise price of $0.86 apiece; a $3mm term loan to Avalon, secured by a lien on all of Avalon's intellectual property; and a license agreement granting Clinical Data exclusive royalty-free worldwide rights to Avalon's {AvalonRx} (including carve-outs for existing compounds) in exchange for $1mm cash up front. Clinical Data adds Avalon to its list of partners and acquirees over the last few years that it has used to boost its discovery capabilities and pipeline. In August, it bought Adenosine Therapeutics (treatments for inflammation, asthma, and ophthalmic conditions as well as a cardiac imaging agent), and two years prior, it took over molecular diagnostics and drug development services company Genaissance Pharmaceuticals.

[MediCult] buys [MidAtlantic Diagnostics] for $15.5mm

Mon, 01 Sep 2008 00:00:00 -0400

[MediCult AS] has acquired fellow assisted reproductive technologies company [MidAtlantic Diagnostics] for $15.5mm (DKK78.6mm). Shareholders will get $9mm in cash up front and deferred payments over a three-year-period of $6mm in cash and $500k in MediCult shares. MidAtlantic Diagnostics, a closely held company established in 1989, sells disposables and equipment to embryologists, andrologists, and other reproductive medicine specialists--the precise market MediCult serves. The company's 2008 sales revenues are expected to be about $13.5mm, with earnings of $2.5mm. Post-merger, MidAtlantic Diagnostics will become a wholly owned subsidiary of MediCult and continue to do business--with its current CEO in position--out of its NJ office.

[Lipomics] acquired by [Tethys]

Mon, 01 Sep 2008 00:00:00 -0400

[Tethys Bioscience] (personalized diagnostics) is buying privately held [Lipomics Technologies] (lipid metabolite analysis) for an undisclosed amount. All Lipomics employees will retain their positions at the combined company, with Lipomics's president and CEO taking over as CTO. The merged entity will use Lipomics's metabolite profiling technology with Tethys' protein biomarker expertise to develop predictive diagnostics for chronic diseases. Tethys created the {PreDx} diabetes risk test and has a similar product in development to assess the risk for an osteoporotic bone fracture or a major cardiac event. The acquired company is focused in the areas of high-density lipoprotein metabolism, diabetes, weight loss, and inflammation.

Private group buys out [Teva]'s ownership of [Ivax Diagnostics]

Mon, 01 Sep 2008 00:00:00 -0400

[Teva Pharmaceutical] is selling its 72% stake in publicly traded [Ivax Diagnostics] to an investment group led by pharma and diagnostics industry executives Paul Kennedy and Patrice Debregeas. Teva is getting $14mm, or $0.70 a share (equivalent to revenues for its stake and an 11% premium to the recent $0.63 trading average; the business had a 2007 net loss of about $10mm). In 2005, Teva paid $8.4bn to acquire [Ivax Corp.], which included its major business--pharmaceuticals--plus the 72% majority of the small diagnostics operations then controlled by parent Ivax (in 2000 the company had spun out a minority of Ivax Diagnostics, and the stock traded separately). As of June 2007, Ivax Diagnostics had cash and cash equivalents of just over $3mm. It has operations in the US and Italy, working through three subsidiaries that develop and sell its reagents (mostly for autoimmune and infection) and related instrumentation and software worldwide: [Delta Biologicals SRL], [Diamedix Corp.], and [ImmunoVision Inc.] Investor Paul Kennedy had worked at French subsidiaries of Novo Nordisk and Abbott, at Boots, and most recently at Cozart, a UK drugs-of-abuse testing company. Debregeas was the founder of Ethypharm SA, a drug delivery company he led for nearly 30 years.

[bioMerieux] buys [AviaraDx] for $60mm

Mon, 01 Sep 2008 00:00:00 -0400

In vitro diagnostics firm [bioMerieux SA] has purchased privately held molecular diagnostics company [AviaraDx] for $60mm. The acquired company was formed in 1996 as Arcturus Bioscience, and changed its name to AviaraDx in 2006. It has a staff of 19 employees, will be operated by bioMerieux as an independent entity under the name [bioTheranostics], and will be headed by bioMerieux's corporate VP of business development and theranostics. AviaraDx brings two cancer biomarker products to the table. The first is {Aviara CancerTYPE ID}, a test designed to more distinctly define cancer types in tumors that would otherwise be classified as unknown or uncertain (

[Nanogen] reverse merges with [Elitech] in €66.5mm deal

Fri, 01 Aug 2008 00:00:00 -0400

[Nanogen] has agreed to reverse merge with fellow in vitro diagnostics player [Elitech Group] (privately held) in a transaction valued at €66.5mm ($99.2mm). The deal excludes Elitech's French sales subsidiary, which the combined entity has the exclusive right to buy for €3.5mm over the next two years. Nanogen is issuing stock (about 240mm shares based on the ten-day average prior to deal announcement) to acquire all of Elitech's outstanding shares. At closing, Elitech will become a wholly owned subsidiary of the combined entity, which will be controlled by Elitech stockholders--who could own between 58.7-68.7% per a