QIAGEN Acquires Rapigene for $12 Million
Under the terms of the agreement, QIAGEN has agreed to issue approximately 154,000 shares of its common stock in exchange for 100% of the outstanding equity in Rapigene. Based on an average price per share of QIAGEN common stock as defined in the agreement, the consideration amounts to approximately $12 million. The transaction, which closed on December 31, 1999, will be accounted for as a purchase.
Rapigene has proprietary technologies in core areas of genomics, including SNP analysis. As sequencing of the human genome advances, genomics activities are increasingly focusing on exploring individual DNA variations (SNPs) for use in drug development. In addition, SNPs may be useful in predicting an individual's genetic susceptibility to disease and in understanding a patient's reaction to therapies. As a result, genomics-based drug development depends on the availability of efficient tools for the nucleic acid sample preparation and the discovery, validation, and detection of SNPs in thousands of nucleic acid samples.
Rapigene's core competencies include its Masscode Cleavable Mass Spec Tag technology. This technology represents the only available alternative to four-color fluorescence DNA sequencing. Unlike conventional DNA sequencing, which allows four or eight simultaneous measurements, Masscode technology, coupled with a standard mass spectroscopy unit, enables a user to obtain over 40,000 measurements per day per instrument. Rapigene currently offers this validated technology as a service to pharmaceutical, agricultural, and genomics companies, as well as academic centers.
In addition, Rapigene has built a range of enabling technologies that can be combined with certain QIAGEN products. These include technologies that increase the efficiency of handling of nucleic acid microarrays and those that dramatically improve and control the hybridization reactions incorporated in many types of DNA assays.
QIAGEN expects significant growth in Rapigene's SNP analysis service business and that the first products based on Rapigene's technologies will be introduced to QIAGEN's customers in the year 2001.
Metin Colpan, president and CEO of QIAGEN, was quoted as saying, "Rapigene's DNA reaction control and Masscode technologies are expected to seamlessly integrate with QIAGEN's high-throughput nucleic acid sample purification and preparation portfolio, creating a powerful, integrated platform that our genomics customers can access as a service and in the near future as a part of our product offering."
Added Nick McCooke, president of Rapigene, "Our success is based on the fact that we not only demonstrate our leading-edge science but also have extensive data that proves our Masscode system's accuracy is comparable to DNA sequencing. While DNA sequencing is considered the gold standard method in terms of quality, it is far too expensive and slow for SNP analysis. In joining forces with the technology and marketing strength of the QIAGEN group, we believe we now have the best opportunity to build a significant commercial presence in the global genomics market."
Rapigene was established in 1998 as the genomics and nucleic acid analysis subsidiary of the Celltech Group. The company's technologies evolved from Darwin Molecular Inc., a company founded by David Galas, Leroy Hood, and others, and acquired by Chiroscience PLC, now a part of Celltech Group PLC, in 1996. Rapigene employs 15 researchers and service people at its facilities in Bothell.
QIAGEN N.V., a Netherlands holding company with subsidiaries in Germany, the United States, Japan, the United Kingdom, Switzerland, France, Australia, and Canada, provides enabling technologies and products for the separation, purification, and handling of nucleic acids. The company has a portfolio with more than 280 proprietary, consumable products as well as automated instrumentation and related services. QIAGEN employs approximately 1000 people worldwide.
For more information: QIAGEN N.V., Spoorstraat 50 5911 KJ, Venlo, The Netherlands. Tel: +31-77-320-8400. Fax: +31-77-320-8409.