Qiagen Signs Agreement for the Acquisition of eGene

Qiagen North American Holdings, Inc., a subsidiary of Qiagen N.V. (Hilden, Germany) has signed a definitive merger agreement with eGene, Inc. (Irvine, CA, USA), an early-stage company. eGene will become a fully owned subsidiary of Qiagen North American Holdings, Inc.

eGene has developed and is commercializing a patented sample separation and analysis technology based on capillary electrophoresis. The transaction has been approved by the boards of directors of both companies and is expected to close, subject to regulatory and stockholder approvals and customary closing conditions, in the third quarter of 2007.

Under the terms of the agreement, Qiagen North American Holdings, Inc. will offer US$0.65 in cash and 0.0416 common shares of Qiagen stock per share of eGene stock. The aggregate purchase consideration amounts to approximately $34.0 million. Based on preliminary analyses and assuming the transaction closes early in the third quarter of 2007, Qiagen expects this transaction to contribute approximately $2 million in sales in the second half of 2007 and roughly $7-9 million in sales for the full year of 2008.

eGene has developed a multi-channel sample separation and analysis technology for nucleic acids that includes an affordable and robust instrument, software analysis package, and a selection of consumable cartridges specifically designed for specific high value applications in the molecular diagnostic and research markets. The HDA-GT12 genetic analyzer is a revolutionary multi-capillary system that incorporates many capabilities into one easy to use platform, integrating automatic sample loading, separation, and data analysis.

The HDA system significantly improves the workflow and increases the productivity of medium to high throughput laboratories. With the HDA system, the technician simply loads a 96-well plate containing the samples, sets the software specification, and then walks away while the instrument automatically loads and processes the samples. At the end of the experiment, the technician can access a graphic representation of the collected digital data, giving accurate information of the DNA fragments (targeted genetic variants) with a separation in high-resolution (2-5 bp) quality.

Currently, eGene's consumable cartridges are available for a number of research applications, including formats addressing the human leukocyte antigen (HLA) testing market, genetic testing including microsatellite analyses, DNA post-PCR separation and analysis at different resolutions, and RNA integrity quality control. eGene's product range is therefore highly synergistic with Qiagen's sample and assay technologies.

For example, in the market for transplantation-related (HLA) molecular diagnostics, eGene's consumables facilitate the use of Qiagen's SSP PCR-based molecular diagnostics for HLA. The Qiagen SSP HLA product line is in vitro diagnostic (IVD) CE-marked for clinical diagnostic use in the European Union and is for research use only in the United States and Canada.

With the Qiagen Qiaplex multiplex test technologies, a patient sample can potentially be tested against multiple pathogens at the same time to rapidly determine the origin of the infection. Qiaplex products are currently available as research use only products for the investigation of respiratory, hospital-acquired, and bacterial (StaphPlex) infections, as well as additional panels for other pathogens.

eGene has developed a sample separation system for nucleic acid processing that is both affordable and robust said Peer M. Schatz, Qiagen's CEO. With the eGene system, we are adding a consumable and instrument line which provides quality control capabilities following the use of sample technologies, as well as a readout system for our assay technologies in one platform. The combination of novel and patented multiplex fluorescence detection designs with solid-state light sources and micro-optical collectors creates an advantage over conventional gel-based sample separation technologies. The eGene system permits a new dimension of ease of use and automation, freeing up the researcher's time for more important endeavors.


Related Links:
Qiagen
eGene