Recently, Qiagen (QGEN) entered into an agreement to acquire 61% stake in France-based Ipsogen, a leading molecular profiling and personalized healthcare diagnostic company in the field of hematology.
This binding agreement follows the terms announced earlier on June this year when Qiagen announced its intention of purchasing an initial stake in Ipsogen for €12.90 per share. Thereafter, Qiagen plans to issue a public offering for the remaining shares at the same price in order to fully acquire the company. With Ipsogen, Qiagen would have access to a wide range of biomarkers for treating patients suffering from blood cancer.
Ipsogen recorded 24% sales growth in 2010 to €8.4 million (approximately $11 million). The whole transaction (including the public offer) is expected to be completed by the third quarter of 2011.
Most of Ipsogen's assays have CE-IVD Marking in Europe and is compatible with Qiagen’s Rotor-Gene Q real-time PCR system. This will enable smooth functioning of Qiagen’s integrated sample-to-result laboratory automation platform QIAsymphony RGQ including the Rotor-Gene Q system.
Qiagen plans to utilize its existing cash balance to fund this acquisition. The transaction, on an adjusted basis, will be slightly dilutive to adjusted EPS in 2012, but will be accretive in 2013.
Based on a solid cash position ($776 million at the end of first quarter) Qiagen is adopting an aggressive acquisition strategy in order to widen its scope and have a competitive edge over its major competitors like Life Technologies (LIFE) and Sigma-Aldrich (SIAL).
Qiagen also plans to acquire Australia-based biotechnology company Cellestis Limited. As per the updated terms of the deal, Qiagen recently increased the offer price by 7% from the original offer price of $3.69 (A$3.55), announced on April 4, 2011, to $4.06 (A$3.80) per share. With this acquisition, Qiagen is expected to gain access to Cellestis’ proprietary QuantiFERON technology, an innovative disease diagnostic tool.
The molecular diagnostics market in the US has a fair chance of improving in the coming quarters given the increase in patient visits to physician offices. Moreover, the proposed acquisition of Ipsogen should strengthen Qiagen’s profiling and personalized healthcare portfolios, thereby helping it to maintain its leadership in molecular diagnostics.
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