Skip to main content
Premium Trial:

Request an Annual Quote

Affy to Buy ParAllele for $120M in Stock; Deal Expected to Close in Q3

NEW YORK, May 31 (GenomeWeb News) - Affymetrix said today that it plans to acquire privately held ParAllele BioScience for approximately $120 million in stock.

 

The acquisition, which will marry ParAllele's genotyping assays and Affy's GeneChip platform, is expected to close in the third quarter of 2005.

 

"The potential for ParAllele's technology goes far beyond genotyping," said Stephen Fodor, CEO of Affymetrix, in a statement. "We will combine both companies' technologies to accelerate discovery and product development in a wide variety of areas, from basic research to the clinic."

 

The acquisition grew out of a long-standing collaboration between the two firms. In 2003, Affy began providing its GeneChip platform for use with ParAllele's genotyping assays, which are based on its Molecular Inversion Probe technology - a process that enables up to tens of thousands of reactions to be multiplexed in a single tube.

 

Last year, Affy and ParAllele extended the collaboration into a distribution partnership under which ParAllele agreed to design assays for Affymetrix to market for use with the GeneChip platform.

 

Earlier this year, ParAllele announced plans to partner with Eli Lilly and Genaissance to design and market its upcoming MegAllele DME-T assay panel, which will run on Affy's platform and will test around 160 genes that are involved in drug metabolism and transport pathways.

 

Affymetrix said it expects the acquisition of ParAllele to be "financially neutral" to its operating results in 2006 and accretive to net income in 2007.

 

The company expects to incur a merger-related charge of around $15 million in fiscal 2005 for in-process R&D, as well as operational charges in the range of $4 million to $7 million. These operational charges include non-cash amortization of about $2 million.

The Scan

Cell Atlas of Human Lung Development Gives View of Developing Airway

Researchers have generated a cell atlas of human lung development, which they report in Cell.

Study Finds Costs of Genome Sequencing May Limit Utility in Routine Care

Researchers report in the European Journal of Human Genetics that genome sequencing for rare disease diagnoses currently has similar benefits as less expensive exome analysis.

Study Suggests Nursing Mother's Diet Can Impact Offspring's Gut Microbiome

A new Cell Host and Microbe paper finds that mice whose mothers were fed a low-fiber diet during nursing experience lasting microbiota dysbiosis and increased obesity.

Study Links Genetic Risk for ADHD With Alzheimer's Disease

A higher polygenic risk score for attention-deficit/hyperactivity disorder is also linked to cognitive decline and Alzheimer's disease, a new study in Molecular Psychiatry finds.