CARLSBAD, Calif., Jan. 31 Isis Pharmaceuticals,Inc. (Nasdaq: ISIS) announced today that Abbott is investing up to $40 millionin Ibis Biosciences, Inc., an Isis subsidiary. The investment will allow Ibisto further develop the Ibis T5000(TM) Biosensor System, which offers a uniquesolution for rapid identification and characterization of infectious agentsthat can identify virtually all bacteria, viruses and fungi, and can provideinformation about drug resistance, virulence and strain type of thesepathogens within a few hours.
Under the terms of the agreement, Abbott will initially acquireapproximately 10.25 percent of the equity in Ibis for $20 million. Abbottwill have the right to invest an additional $20 million before July 31, 2008for a total of 18.6 percent of Ibis equity. Abbott will also receive anexclusive option to purchase the remaining equity in Ibis for an additional$175 to $195 million through June 30, 2009 plus an earn out tied toachievement of certain cumulative sales. The option exercise price canincrease to up to $190 to $210 million with Ibis' successful completion ofpre-negotiated milestones.
"This investment by Abbott reflects the significant value we have builtthrough our Ibis business," said Michael Treble, President of Ibis. "We havebeen successful in commercializing our products for various government,epidemiology and clinical research applications, and we are excited aboutexpanding our markets to hospital-based infections and, eventually, todiagnostics. We believe that this investment will allow us to accelerate theevolution of the Ibis technology to address our biggest market opportunity:clinical diagnostics."
"Ibis is a tangible example of the value of the innovation taking place atIsis and of our strategy," said B. Lynne Parshall, COO and CFO of Isis. "Theinvestment by Abbott provides Ibis the funding to take the key next steps inenhancing its value. Because of the transaction structure, even if the optionis exercised, Isis shareholders will continue to benefit from Ibis' successthrough the earn out provision. As a result we believe this is a veryattractive transaction for Isis shareholders."
At 8:30 a.m. Eastern Standard Time today, January 31, 2008, Isis willconduct a live webcast conference call to discuss this transaction.Interested parties may access the webcast at http://www.isispharm.com orlisten to the call by dialing 877-440-5796. A webcast replay will beavailable for a limited time at the same address.
ABOUT IBIS T5000 BIOSENSOR SYSTEM AND IBIS BIOSCIENCES, INC.
Ibis Biosciences, Inc., a majority-owned subsidiary of IsisPharmaceuticals, has developed and is commercializing the Ibis T5000(TM)Biosensor System for rapid identification and characterization of infectiousagents. The Ibis T5000 is currently intended for research use only and notfor use in diagnostic procedures. It is capable of identifying virtually allbacteria, viruses and fungi, and can provide information about drugresistance, virulence and strain type of these pathogens. Commercialapplications for the Ibis T5000 Biosensor System include epidemiologicsurveillance, monitoring of pandemic diseases, identification of emerging orpreviously unknown pathogens, forensic characterization of human samples,identification of sources of hospital-associated infections, and, in thefuture, human infectious disease diagnostics. Ibis develops, manufactures andmarkets Ibis T5000 instruments and assay kits, including through its partner,Bruker Daltonics, a subsidiary of Bruker BioSciences Corporation. Additionalinformation about Ibis can be found by selecting the Ibis link from Isis'homepage at http://www.isispharm.com.
ABOUT ISIS PHARMACEUTICALS, INC.
Isis is exploiting its expertise in RNA to discover and develop noveldrugs for its product pipeline and for its partners. The Compan