Qiagen to buy SABiosciences for $90 million; posts strong third-quarter results

Netherlands,-based Qiagen has signed a definite agreement to acquire SABiosciences Corp, a privately-held, US developer and manufacturer of disease- and pathway-focused PCR assay panels. The transaction is valued at $90 million in cash (subject to customary purchase price adjustments) and is expected to close in late December 2009, following approval of SABiosciences' stockholders and the expiration of the statutory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Qiagen expects the acquisition will contribute revenues of around $24 million in sales in 2010, to be neutral to earnings per share in that year and to be significantly accretive to adjusted EPS in 2011.

ABiosciences holds a leading position in the design and commercialization of disease- and pathway-focused real-time PCR-based assay panels, which are widely utilized in biomedical research and in the development of future drugs and diagnostics. The company's primary product family includes more than 100 real-time PCR assay panels designed for high-performance analysis of DNA, RNA, epigenetic and microRNA targets in biological pathways associated both with specific diseases such as cancer, diabetes, immune and cardiovascular disorders, as well as with pathways such as apoptosis (programmed cell death), signal transduction and toxicology.

Solutions focusing on the analysis of molecular interactions in pathways - a series of actions among molecules in a cell - open up a new dimension for gene analysis. Conventional assay products are usually designed for the study of a single gene's expression and not offered in complete panels covering all genes of interest associated with a specific disease or pathway.

SABiosciences, in contrast, is a pioneer in the design of preformatted PCR assay panels and focuses on the biology of entire pathways and interaction of all genes involved in a specific disease. In a single experiment users can therefore learn how gene activity in their samples correlates with the state of a disease of their particular interest. As such, SABiosciences' expertise and unique offering lie in the biomedical and bioinformatics know-how required to design and format such assay panels. Its approach allows biomedical researchers and pharmaceutical companies to facilitate and accelerate the discovery and validation of biomarkers.

SABiosciences' operations are located in the immediate vicinity of Qiagaen's North American headquarters based in Germantown and Gaithersburg, Maryland. This proximity is expected to contribute to a rapid and smooth integration of the two companies' operations.

Qiagen sees 13% growth in third quarter sales

Separately, Qiagen announced its third-quarter 2009 results yesterday after market close, with a 13% growth in net sales to $259.7 million, driven by growth in sales of molecular diagnostics division. Adjusted operating income rose 22% to $81.8 million and net income grew 26% to 53.5 million, with reported earnings per share up 24% to $0.26. As a result of the good first nine month performance, the company upgraded its adjusted diluted EPS guidance to $0.88-$0.90 from previous $0.86 to $0.90.