Qiagen Acquires SABiosciences for $90M

Hits:1352   Date: 11/11/2009

NEW YORK (GenomeWeb News) – Qiagen said yesterday that it has signed a definite agreement to acquire SABiosciences, a privately-held developer and manufacturer of disease- and pathway-focused PCR assay panels, for $90 million.

SABiosciences, based in Frederick, Md., employs some 100 workers. Its primary product family includes more than 100 real-time PCR assay panels for analyzing DNA, RNA, epigenetic, and microRNA targets in biological pathways associated with specific diseases such as cancer, diabetes, and immune and cardiovascular disorders; as well as with pathways such as apoptosis, signal transduction, and toxicology.

Qiagen said that the assay panels are used in biomedical research and in the development of future drugs and diagnostics. In particular, Qiagen said that it expects the acquisition to be highly synergistic with its September acquisition of UK-based companion diagnostics firm DxS.

"These assay panels are designed for use with and leveraged by Qiagen's sample and assay technologies and can be run on Qiagen instruments," CEO Peer Schatz said in a statement. "Subject to final closing, the transaction can create great value for both our strategy in pharma and our strategy in diagnostics."

Qiagen noted that SABiosciences' operations are located near Qiagen's North American headquarters in Germantown and Gaithersburg, Maryland, which is expected to "contribute to a rapid and smooth integration of SABiosciences into Qiagen operations," the company said.

Subject to the closing of the transaction, Qiagen also intends to expand the disease- and pathway-focused assay panels and to establish and grow SABiosciences' Frederick site as a center of excellence in biological content development.

Qiagen said that it expects the acquisition to close in late December 2009, and that it will contribute revenues of approximately $24 million in sales in 2010. The acquisition is also expected to be neutral to EPS in 2010 and to significantly accretive to adjusted EPS in 2011, the company said.