Qiagen to Acquire PCR-Based Molecular Dx Maker Shenzhen PG Biotech of China for $14.5M

NEW YORK, Sept. 26 (GenomeWeb News) - Qiagen plans to acquire Chinese molecular diagnostics company Shenzhen PG Biotech for $14.5 million in cash, Qiagen said today.

Under the terms of the agreement, which is pending Chinese government approval and subject to certain closing conditions, Qiagen will acquire all outstanding shares of Shenzhen-based PG Biotech. More than half of the company's shares are currently held by state-owned institutions. Depending on the date of the closing, Qiagen expects the acquisition to contribute $6millionn to $7 million in sales over 12 months.

PG Biotech, which has a staff of 120, with a "substantial number" in research and development, according to Qiagen, provides PCR-based molecular diagnostic assays in China. The company has more than ten assays approved by the Chinese State Food and Drug Administration, including assays for pathogens such as SARS, HBV, HPV, Mycobacterium tuberculosis, Neisseria, and Chlamydia. In addition, PG Biotech provides assays for import/export controls and quarantine testing, and is developing panels for disease profiles. Qiagen said PG Biotech's business profile is "comparable" to that of Artus, which the company acquired earlier this year.

This is not Qiagen's first foray in to the Chinese market: in June, the company acquired nucleic acid reagent provider Tianwei Times. Qiagen also opened an office in Shanghaithis year and strengthened its distribution channels with Gene Company.