Qiagen acquires Genaco shares for up to $40M

The Netherlands-based molecular diagnostics firm Qiagen NV has acquired all the outstanding shares of Genaco Biomedical Products, an early-stage US company applying its proprietary PCR-based multiplexing technology, Tem-PCR, to develop Templex molecular diagnostic tests.

Under the terms of the deal, Qiagen acquired 100% of Genaco's outstanding shares for $22.0 million in cash plus 125,000 shares of restricted Qiagen stock issued to its founder and chief scientist. In addition, it will pay up to $18.0 million in milestones which, to a significant extent, are triggered by the receipt of grants and comparable funding in the same amount. Based on preliminary analyses, the Dutch firm expects this transaction to contribute $200,000 in sales in the last quarter of the year and turnover of $3.0 million in full-year 2007. Qiagen noted that, with the Templexpanel approach, a patient sample can now be tested against a panel of 10 or more pathogens to determine the identity of the cause of infection. A quantitative qPCR test can then be used to confirm and quantify the pathogens.