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ESE has pioneered the development and manufacturing of opticalmeasurement systems for medical and industrial applications. The systemsutilize unique, high-performance and award-winning fluorescence detectiontechnologies integrated into compact modules. ESE's solutions are consideredas an emerging standard for the detection of fluorescent signals in a widerange of molecular testing applications, most notably in nucleic acid-basedpoint-of-need testing. In addition to portable solutions for point-of-needtesting, these miniaturized, low-cost fluorescence detection modules can beintegrated in laboratory instruments as well.
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The systems' "ultra-fast time to result" and high portability open newopportunities in healthcare and applied testing (e.g. veterinary, food,environmental, biodefense testing), enabling low-throughput molecular testingin practices, emergency rooms, remote field areas, and other settings where alaboratory infrastructure is not accessible and fast turnaround is required.ESE's fluorescence detection systems can be battery operated, process up toeight samples at a time and even permit testing of samples for severalparameters in a single run (multiplex testing). As the proprietary technologyallows for the detection modules to be manufactured at very low cost, thecomplete solutions can sell for less than US$2,000 per unit - significantlybelow the price of other comparable testing systems.
QIAGEN has demonstrated that ESE's fluorescence detection systems can beused to measure signals generated by the Company's existing testingtechnologies, including the HDA and tHDA isothermal assay systems, whichQIAGEN has licensed from BioHelix in 2008(http://www1.qiagen.com/about/pressreleases/PressReleaseView.aspx?PressReleaseID=199 ). These isothermal assay technologies are an integral part ofQIAGEN's next generation screening platform QIAensemble. Therefore, assaydevelopment for the fluorescence detection systems can benefit from ongoingresearch activities for the QIAensemble platform.
QIAGEN has verified the ability of ESE's systems to run HDA-based assaysfor several pathogens including Salmonella and E.coli bacteria as well asInfluenza viruses. Analysis can be performed directly on samples (i.e., fromcrude blood) or following an upfront sample preparation step integrated intothe devices using QIAGEN's proven sample technologies. Depending on thetarget, such assays can generate results in between 5 and 15 minutes. Thisrepresents a key breakthrough allowing the platform to meet the mostimportant requirement in point-of-need testing: ultra-fast time to result.
The transaction contributes to QIAGEN's strategy of expanding itstechnology leadership and of driving the dissemination of molecular sampleand assay technologies into everyday life. It not only adds a novel detectionplatform to QIAGEN's portfolio of assay technologies, but also createsoptions for point-of-need test solutions in select markets. QIAGEN plans todevelop and offer such solutions for a broad range of molecular diagnosticsegments in Europe, Latin America and Asia. In the United States, QIAGENintends to focus on select application fields such as acute care (emergencyrooms, mobile testing) and critical care areas where rapid turnaround and/orportable solutions are required. These segments generally do not overlap withQIAGEN's current markets in the United States in terms of customers and assaymenu. QIAGEN expects its first submissions for regulatory approval ofcorresponding assays to take place following the launch of clinical systemsafter 2011. In the developing world, QIAGEN sees a significant opportunityfor the technology to expand its offering in infectious disease testing withpoint-of-need options. Together with PATH and the Bill & Melinda GatesFoundation, QIAGEN has already developed a version of its HPV test for publichealth programs in low-resource & developing countries(http://www1.qiagen.com/about/pressreleases/PressReleaseView.aspx?PressReleaseID=217 ) that can be performed without electricity or running water andoffers detection results within 2.5 hours.
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Additionally, QIAGEN believes that there are several areas in appliedtesting which offer significant potential for point-of-need testingsolutions. These include animal, food and environmental safety testing, whereportability and the ability to be placed in diverse locations are keyrequirements perfectly addressed by the platform.
"We are excited about the addition of ESE's capabilities and technologyportfolio. We believe it will considerably strengthen QIAGEN's portfolio ofdetection technologies and help us to better address the needs of ourexisting customers in a range of application fields. In addition, due to theunique features of ESE's technology, this transaction allows QIAGEN tosynergistically apply our sample and assay technologies to the exciting,emerging point-of-need testing market segment," said Peer Schatz, QIAGEN'sCEO. "QIAGEN has always been driving the dissemination of molecular biology.With this new technology portfolio, we now have the opportunity to shape anew dimension for molecular testing," Mr Schatz continued.
"The deal is a great fit for us," said Klaus Haberstroh, founder and CEOof ESE GmbH. "With its leadership in molecular sample and assay technologies,QIAGEN is the ideal partner to capitalize on our development and engineeringknow-how and to take our technology to the next level."
QIAGEN will establish ESE's development and manufacturing site inStockach as a Center of Excellence in Detection Development and intends toretain and expand the employee base.
QIAGEN anticipates the one-time charges in connection with thisacquisition not to exceed US$500,000 in 2010. The transaction is expected tocontribute approximately US$6 million in sales in 2010. On an adjusted basisexcluding one-time charges, integration and restructuring costs, andamortization of acquisition related intangible assets, the acquisition isexpected to be neutral to EPS in 2010.
About QIAGEN:
QIAGEN N.V., a Netherlands holding company, is the leading globalprovider of sample and assay technologies. Sample technologies are used toisolate and process DNA, RNA and proteins from biological samples such asblood or tissue. Assay technologies are used to make such isolatedbiomolecules visible. QIAGEN has developed and markets more than 500 sampleand assay products as well as automated solutions for such consumables. Thecompany provides its products to molecular diagnostics laboratories, academicresearchers, pharmaceutical and biotechnology companies, and applied testingcustomers for purposes such as forensics, animal or food testing andpharmaceutical process control. QIAGEN's assay technologies include one ofthe broadest panels of molecular diagnostic tests available worldwide. Thispanel includes the digene HPV Test, which is regarded as a "gold standard" intesting for high-risk types of human papillomavirus (HPV), the primary causeof cervical cancer, as well as a broad suite of solutions for infectiousdisease testing and companion diagnostics. QIAGEN employs more than 3,400people in over 30 locations worldwide. Further information about QIAGEN canbe found at http://www.qiagen.com/.
About ESE:
ESE GmbH ESE GmbH is a high-tech enterprise focused on the developing andOEM manufacturing of innovative optical measurement devices for medical,environmental and industrial applications. The company is based in Stockachand employs a staff of 36. More information on http://www.ese-gmbh.de.
SAFE HARBOR STATEMENT
Statements contained in this release that are not historical facts areforward-looking statements, including statements about our products, markets,strategy and operating results. Such statements are based on currentexpectations that involve risks and uncertainties including, but not limitedto, those associated with: the technical performance of ESE's technology andthe ability to integrate it with QIAGEN's existing products to produceultra-fast point-of-need solutions, the anticipated market price of completesystems incorporating ESE's technology, the effect of the transaction onQIAGEN's revenues, EPS, net income and margins, management of growth andinternational operations (including currency fluctuations and logistics),variability of our operating results, commercial development of our markets(including applied testing, clinical and academic research, proteomics,women's health/HPV testing, molecular diagnostics, personalized healthcareand companion diagnostics), our relationships with customers, suppliers andstrategic partners, competition, changes in technology, fluctuations indemand, regulatory requirements, identifying, developing and producingintegrated products differentiated from our competitors' products, marketacceptance of our products, and integration of acquired technologies andbusinesses. For further information, refer to our filings with the SEC,including our latest Form 20-F. Information in this release is as of the dateof the release, and we undertake no duty to update this information unlessrequired by law.Contacts: Dr. Solveigh Mahler Director Investor Relations QIAGEN N.V. +49-2103-29-11710 e-mail: [email protected] Albert F. Fleury Investor Relations North America QIAGEN N.V. +1-301-944-7028 e-mail: [email protected] Dr. Thomas Theuringer Associate Director Public Relations QIAGEN GmbH +49-2103-29-11826 e-mail: [email protected]
SOURCE QIAGEN N.V.
