Bio-Rad Buys Ciphergen's Proteomics Instrument Biz
FREMONT and HERCULES, Calif., Aug. 15, 2006 -- Molecular diagnostic products maker Ciphergen Biosystems Inc. and Bio-Rad Laboratories Inc. announced yesterday that Bio-Rad will acquire Ciphergen's proteomics instrument business for $20 million in cash. In addition, Bio-Rad will make a $3 million equity investment in Ciphergen.
Ciphergen's instrument business includes its surface-enhanced laser desorption/ionization (SELDI) technology, ProteinChip arrays and accompanying software. Under the terms of the agreement, Bio-Rad will manufacture, sell and market the SELDI technology to the life sciences marketplace for proteomics applications, such as biomarker discovery, characterization and validation. Ciphergen will retain exclusive rights to the diagnostics market. Through a separate supply agreement, Bio-Rad will supply instruments and reagents to Ciphergen.
Bio-Rad manufactures products for the life science research and clinical diagnostics market. The company's headquarters are in Hercules and it has more than 5000 employees.
Ciphergen President and CEO Gail S. Page said the sale will allow Ciphergen to transform into a specialized diagnostics provider. Following completion of the transaction, Ciphergen will have approximately 40 employees at its Fremont headquarters dedicated to commercializing diagnostic tests, primarily in oncology with an initial focus on ovarian and prostate cancer. The company entered a three-year strategic alliance with Quest Diagnostics in 2005 to develop and commercialize novel proteomic diagnostic tests from its pipeline, including the first proteomics-based test for ovarian cancer.
The transaction, expected to close in the fourth quarter of 2006, is subject to approval by Ciphergen's stockholders and other customary closing conditions.
For more information, visit: www.ciphergen.com or www.bio-rad.com
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