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QIAGEN N.V. announces acquisition of ESE GmbH for $19 million

Published on January 12, 2010 at 2:41 AM · No Comments

QIAGEN N.V. (NASDAQ: QGEN; Frankfurt, Prime Standard: QIA) today announced that it has acquired ESE GmbH, a privately held developer and manufacturer of UV and fluorescence optical measurement devices. ESE is based in Stockach, Germany. The transaction is valued at up to US$19 million in cash.

ESE has pioneered the development and manufacturing of optical measurement systems for medical and industrial applications. The systems utilize unique, high-performance and award-winning fluorescence detection technologies integrated into compact modules. ESE's solutions are considered as an emerging standard for the detection of fluorescent signals in a wide range of molecular testing applications, most notably in nucleic acid-based point-of-need testing. In addition to portable solutions for point-of-need testing, these miniaturized, low-cost fluorescence detection modules can be integrated in laboratory instruments as well.

The systems' "ultra-fast time to result" and high portability open new opportunities in healthcare and applied testing (e.g. veterinary, food, environmental, biodefense testing), enabling low-throughput molecular testing in practices, emergency rooms, remote field areas, and other settings where a laboratory infrastructure is not accessible and fast turnaround is required. ESE's fluorescence detection systems can be battery operated, process up to eight samples at a time and even permit testing of samples for several parameters in a single run (multiplex testing). As the proprietary technology allows for the detection modules to be manufactured at very low cost, the complete solutions can sell for less than US$2,000 per unit - significantly below the price of other comparable testing systems.

QIAGEN has demonstrated that ESE's fluorescence detection systems can be used to measure signals generated by the Company's existing testing technologies, including the HDA and tHDA isothermal assay systems, which QIAGEN has licensed from BioHelix in 2008 (http://www1.qiagen.com/about/pressreleases/PressReleaseView.aspx?PressReleass next generation screening platform QIAensemble. Therefore, assay development for the fluorescence detection systems can benefit from ongoing research activities for the QIAensemble platform.

QIAGEN has verified the ability of ESE's systems to run HDA-based assays for several pathogens including Salmonella and E.coli bacteria as well as Influenza viruses. Analysis can be performed directly on samples (i.e., from crude blood) or following an upfront sample preparation step integrated into the devices using QIAGEN's proven sample technologies. Depending on the target, such assays can generate results in between 5 and 15 minutes. This represents a key breakthrough allowing the platform to meet the most important requirement in point-of-need testing: ultra-fast time to result.

The transaction contributes to QIAGEN's strategy of expanding its technology leadership and of driving the dissemination of molecular sample and assay technologies into everyday life. It not only adds a novel detection platform to QIAGEN's portfolio of assay technologies, but also creates options for point-of-need test solutions in select markets. QIAGEN plans to develop and offer such solutions for a broad range of molecular diagnostic segments in Europe, Latin America and Asia. In the United States, QIAGEN intends to focus on select application fields such as acute care (emergency rooms, mobile testing) and critical care areas where rapid turnaround and/or portable solutions are required. These segments generally do not overlap with QIAGEN's current markets in the United States in terms of customers and assay menu. QIAGEN expects its first submissions for regulatory approval of corresponding assays to take place following the launch of clinical systems after 2011. In the developing world, QIAGEN sees a significant opportunity for the technology to expand its offering in infectious disease testing with point-of-need options. Together with PATH and the Bill & Melinda Gates Foundation, QIAGEN has already developed a version of its HPV test for public health programs in low-resource & developing countries (http://www1.qiagen.com/about/pressreleases/PressReleaseView.aspx?PressReleas>

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