Healthcare Industry News: hepatitis B virus
News Release - February 15, 2007
Cepheid Acquires Sangtec Molecular Diagnostics ABAcquisition Provides Cepheid With European R&D and Manufacturing Capabilities and Expanded Menu of Infectious Disease Diagnostic Assays
SUNNYVALE, Calif., Feb. 15 (HSMN NewsFeed) -- Cepheid (Nasdaq: CPHD ), a broad-based molecular diagnostics company, today announced that it has acquired Sangtec Molecular Diagnostics AB from the Nycomed-owned ALTANA Pharma AG for approximately $27 million in cash. Sangtec, based in Bromma, Sweden, develops and manufactures PCR based molecular diagnostics products. Sangtec currently has 59 employees and had revenues in 2006 of approximately $8 million.
"The acquisition of Sangtec immediately brings Cepheid three key strategic benefits. First, Sangtec currently has a relatively complete line of products for potential use in managing infections of immunocompromised patients. Second, Sangtec has a very strong R&D team experienced in developing real time PCR based products which will enable Cepheid to more expeditiously expand its clinical test product menu. Third, Sangtec has an accomplished manufacturing team noted for its ability to produce high quality products. This team will provide Cepheid with an established reagent manufacturing base in Europe," said Cepheid Chief Executive Officer John Bishop.
Cepheid plans to integrate the Sangtec affigeneŽ family of Real-time PCR molecular diagnostic kits targeted at the immunocompromised market into its existing European and U.S. portfolio of in vitro diagnostic products. The expanded line will include affigeneŽ assay kits for Cytomegalovirus (CMV), Epstein-Barr Virus (EBV), Herpes Simplex Virus 1 and 2 (HSV), hepatitis B virus (HBV), Varicella Zoster Virus (VZV), BK Virus (BKV), and Aspergillus.
It is currently expected that the acquisition will be slightly dilutive to operating income for the first quarter following the acquisition, but should be slightly accretive to operating income for the balance of the year, with a neutral impact on operating income for the entire year of 2007.
Cepheid (Nasdaq: CPHD ), based in Sunnyvale, Calif., is a molecular diagnostics company that develops, manufactures, and markets fully-integrated systems for genetic analysis in the clinical, industrial and biothreat markets. The company's systems enable rapid, sophisticated genetic testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. Through its broad molecular biology capabilities, the company is focusing on those applications where rapid molecular testing is particularly important, such as identifying infectious disease and cancer in the clinical market; food, agricultural, and environmental testing in the industrial market; and identifying bio-terrorism agents in the biothreat market. See www.cepheid.com for more information.
This press release contains forward-looking statements that are not purely historical regarding Cepheid's or its management's intentions, beliefs, expectations and strategies for the future, including those relating to the financial impact of the Sangtec acquisition, the benefits of the Sangtec acquisition, including product performance and usage in the clinical diagnostics market and the development and manufacture of future products. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ materially from the company's current expectations. Factors that could cause actual results to differ materially include risks and uncertainties such as those relating to: unforeseen development and manufacturing problems; our ability to successfully integrate operations and product lines; the ability to increase sales of Sangtec's products; our ability to successfully obtain regulatory approvals for additional products and to introduce new products in the clinical market; risks related to expanded international operations; customer market acceptance of new products; the failure of products to perform as expected, whether due to manufacturing errors, defects or otherwise; the ability of Cepheid to retain and motivate key employees of Sangtec, particularly research and development personnel; incurrence of unexpected liabilities in connection with the acquisition; the impact of competitive products and pricing; potentially lengthy sales cycles in some markets; reimbursement rates for the products; and underlying market conditions worldwide. Readers should also refer to the section entitled "Risk Factors" in Cepheid's Annual Report on Form 10-K for 2005 and in its most recent quarterly report on Form 10-Q, each filed with the Securities and Exchange Commission.
All forward-looking statements and reasons why results might differ included in this release are made as of the date of this press release, based on information currently available to Cepheid, and Cepheid assumes no obligation to update any such forward-looking statement or reasons why results might differ.
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