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QIAGEN Completes Management Buyout of its Synthetic DNA Business Unit
- QIAGEN to Keep its siRNA Business and to Retain Preferred Access to
Synthetic DNA Supply
VENLO, The Netherlands, June 30 /CNW/ - QIAGEN N.V. (Nasdaq: QGENF;
Frankfurt, Prime Standard: QIA) today announced that it has sold its synthetic
DNA business to a management team previously employed at QIAGEN and which
operated parts of this business. The new company is backed by private
investors and QIAGEN will retain a minority stake of 16%. The new company, to
be named Operon Biotechnologies Inc., expects to continue to expand the
leadership position QIAGEN has built in this market. QIAGEN will retain all
rights and activities in its leading siRNA business including ownership of
QIAGEN's proprietary TOM-amidite chemistry.
Pursuant to the terms of the agreements, QIAGEN will retain a minority
equity ownership of 16% in Operon Biotechnologies and, in addition, receive a
consideration of approximately US$ 24.3 million, of which approximately
US$ 17.8 million are in cash and the remainder in a promissory note. In
addition, QIAGEN will receive preferred access to Operon Biotechnologies'
synthetic nucleic acid manufacturing capacities as well as preferred
purchasing rights. QIAGEN also has the exclusive right to utilize these highly
efficient manufacturing capacities and the value of their continued
improvements for contract manufacturing of siRNA products that QIAGEN will
continue to market.
QIAGEN's synthetic DNA business primarily consists of business built
organically and business added through the acquisitions of Operon Technologies
Inc. in Alameda, California in 2000 and the Sawady Group in Tokyo in April
2001. The resulting business unit, with operations in the US, Germany and
Japan focused on providing custom oligonucleotides, and, increasingly, shelf
products such as array ready oligo sets (AROS). QIAGEN had issued a total of
approximately 3.7 million common shares to acquire these businesses. While
QIAGEN is selling majority ownership in these business activities, QIAGEN
believes that significant value is retained at QIAGEN through the preferred
access and preferred terms. Based on forecasts for this business, it was
expected to contribute approximately 10% of QIAGEN consolidated net sales and
approximately 7% of its operating profit in the second half of fiscal 2004.
The transaction is effective from June 30, 2004 at which time QIAGEN accounts
for these business activities as a minority, passive investment and as a
result, ceases to reflect their revenues and operating income as of such date.
The management team leading the buyout is headed by Patrick A. Weiss.
Patrick A. Weiss was the founder of Xeragon Inc, which QIAGEN acquired in 2002
and is an expert in nucleic acid chemistry and chemical synthesis operations.
"We are excited to be leading Operon Biotechnologies into its next phase
of growth. QIAGEN has returned its nucleic acid synthesis operations to
profitability and we believe Operon Biotechnolgies is now superbly positioned
to expand this leadership position. Through this spin-out, we have not only
created an focused technology and market leader in nucleic acid synthesis
products, but can also allow Operon Biotechnologies strategic moves and
culture to address what we believe is an exciting opportunity," said Patrick
A. Weiss, Operon Biotechnologies Chief Executive Officer."
"We are very pleased to have found what we believe is a great solution
for our synthetic DNA business. We are retaining key preferred access rights
while at the same putting this business into the hands of a very qualified and
committed team. QIAGEN is today an exceptionally driven and focused leader in
the life sciences supply industry. Our innovation, commitment and passion are
directed towards pre-analytical sample preparation. We have great
opportunities in our core space to focus on," said Peer M. Schatz, QIAGEN
Chief Executive Officer. "Oligonucleotides have always been a flanking
business to QIAGEN and in recent years were exposed to a significantly
volatile market environment and lower margins. In 2003 we were able to turn
this business from a loss-contributor to a profitable unit that stands strong
today. However, we believe that the market dynamics and strategic directions
this business is moving into have become different in nature compared to the
markets and path QIAGEN intends to focus on. With Operon Biotechnologies now
in great hands and QIAGEN's preferred terms for and access to Operon
Biotechnologies' manufacturing capabilities with all the economies of scale of
a market leader, we believe we have found a perfect solution and can now focus
on QIAGEN's clearly defined and exciting mission."
Detailed information on this transaction, including its impact on QIAGEN
financials, will be presented in a conference call QIAGEN will host on July 1,
2004 at 9:30am EDT. The corresponding presentation slides will be available 60
minutes ahead of the conference call on the Company's website at
www.qiagen.com/goto/070104. A webcast of the conference call will be available
at www.videonewswire.com/QIAGEN/070104.
About QIAGEN:
QIAGEN N.V., a Netherlands holding company with subsidiaries in Germany,
the United States, Japan, the United Kingdom, Switzerland, France, Italy,
Australia, Norway, Austria, Canada, and the Netherlands believes it is the
world's leading provider of innovative enabling technologies and products for
the separation, purification and handling of nucleic acids. QIAGEN has
developed a comprehensive portfolio of more than 320 proprietary, consumable
products for nucleic acid separation, purification and handling, nucleic acid
amplification, as well as automated instrumentation, synthetic nucleic acid
products and related services. QIAGEN's products are sold in more than 42
countries throughout the world to academic research markets and to leading
pharmaceutical and biotechnology companies. In addition, QIAGEN is positioning
its products for sale into developing commercial markets, including DNA
sequencing and genomics, nucleic acid-based molecular diagnostics, and genetic
vaccination and gene therapy. QIAGEN employs approximately 1,400 people
worldwide. Further information on QIAGEN can be found at www.qiagen.com.
Certain of the statements contained in this news release may be
considered forward-looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, and Section 21E of the U.S.
Securities Exchange Act of 1934, as amended. To the extent that any of the
statements contained herein relating to QIAGEN's products, markets, strategy
or operating results are forward-looking, such statements are based on current
expectations that involve a number of uncertainties and risks. Such
uncertainties and risks include, but are not limited to, risks associated with
management of growth and international operations (including the effects of
currency fluctuations and risks of dependency on logistics), variability of
operating results, the commercial development of the DNA sequencing, genomics
and synthetic nucleic acid-related markets, nucleic acid-based molecular
diagnostics market, and genetic vaccination and gene therapy markets,
competition, rapid or unexpected changes in technologies, fluctuations in
demand for QIAGEN's, products (including seasonal fluctuations), difficulties
in successfully adapting QIAGEN's products to integrated solutions and
producing such products, the ability of QIAGEN to identify and develop new
products and to differentiate its products from competitors, and the
integration of acquisitions of technologies and businesses. For further
information, refer to the discussion in reports that QIAGEN has filed with the
U.S. Securities and Exchange Commission (SEC).
For further information: Contacts: Peer M. Schatz, Chief Executive
Officer, QIAGEN N.V., +49 2103 29 11702, e-mail: peer.schatz@QIAGEN.com;
Dr. Solveigh Mahler, Investor Relations, QIAGEN N.V., +49 2103 29 11710,
e-mail: solveigh.maehler@QIAGEN.com |
