Qiagen Closes $1.6B Digene Acquisition, Opens Hong Kong Subsidiary
Qiagen said this week it has closed its acquisition of Digene through a tender offer and merger valued at around $1.6 billion, under which Digene will become a wholly owned subsidiary of Qiagen North American Holdings.
Qiagen announced its intention to purchase the firm in early June (see BioCommerce Week 6/6/2007).
Digene's central offering is a diagnostic test for human papillomavirus. One of its tests has been approved by the US Food and Drug Administration and has received CE-mark clearance by European regulators.
In June, Qiagen CEO Peer Schatz said the acquisition of Digene's molecular diagnostics assets would provide the firm "with many ways to drive top-line and bottom-line growth, such as access to new channels with existing and new products and combined technology, resources, and infrastructure to provide greater operating strengths."
Under the terms of the deal, Qiagen shareholders agreed to pay $61.25 or 3.545 shares of Qiagen stock for each share of Digene stock. Qiagen today said that 94 percent of Digene shares were tendered and that 90 percent of the shares tendered opted to receive Qiagen stock.
Advisors for the transaction were Goldman Sachs for Qiagen and JP Morgan for Digene.
In a separate announcement this week, Qiagen said that it has opened a new subsidiary in Hong Kong, which will serve as the hub for further expansion in the region.
Frauke Ehlert, general manager of Qiagen China and Hong Kong, said in a statement, "Hong Kong is a focal point for science, healthcare, and the fast-developing market for biomedical research."
Qiagen has 12 offices and approximately 300 employees throughout Asia. According to the firm, Asian sales contribute 15 percent to Qiagen's overall revenues.
Beckman Coulter’s Q2 Revenues, Profit Rise
Beckman Coulter this week reported that its second-quarter revenues rose 11.9 percent to $689.7 million from $616.3 million in last year’s second quarter.
The firm’s clinical diagnostics and immunoassay products drove revenue growth in the quarter with a combined 23.8 percent increase to $151.6 million. The firm’s chemistry systems sales were up 14 percent to $191.1 million, cellular systems sales rose 6 percent to $208.3 million, and discovery and automation systems sales rose 7.1 percent to $138.7 million. Sales to life science customers lagged with revenue growth of 3 percent in the quarter.
Beckman posted a second-quarter profit of $69.4 million, or $1.09 per share, compared with net income of $44.6 million, or $.70 per share, for the comparable period last year.
Last year’s profit was helped by a $35 million payment made to Beckman by Applera to settle litigation between the firms. Last year’s results also included restructuring charges of $6.2 million versus restructuring charges of $2.8 million in the second quarter this year.
This year’s second-quarter results include non-operating income of $40.6 million from the break-up fee paid to Beckman from Biosite, which terminated the firms’ merger agreement and decided to be acquired by Inverness Medical Systems for $1.72 billion (see BioCommerce Week 5/16/2007).
Though its revenues and profit grew for the quarter, a nearly 20 percent increase in hardware revenue trimmed 220 basis points from the firm’s gross profit margin, which was 45.9 percent for the quarter.
“Hospital capital equipment budgets appear to be strong,” Scott Garrett, Beckman’s president and CEO, said in a statement. “Increasingly customers view investments in automation much the same as they view investments in facilities, and as a result, cash sales for automation were above previous trends. Automation systems, often placed at lower margins, are central to our strategy for long-term customer partnerships and account management,” he said.
“We continue to be quite successful in integrated health networks,” Garrett said during the firm’s conference call this week. “Whenever an integrated health network deal comes up there’s at least some shift in market share. So, we’re very pleased with the performance there.”
Product-related revenue increased 13 percent to $584.7 million while service-related revenue was up 7 percent to $105 million. Sales of consumables grew 10.3 percent, the company said.
The acquisition of Lumigen, which the company bought in the fourth quarter of 2006, contributed about 1.6 percent to consumables sales growth. Recurring revenue, which includes supplies, test kits, service revenue, and operating-type lease payments revenue, accounted for around 78.6 percent of total revenue.
Beckman’s R&D spending fell to $58.8 million from $75.1 million in the second quarter of 2006.
The firm finished quarter with around $62 million in cash and cash equivalents. Company officials said they expect 2007 revenue to grow between 7 percent and 9 percent year over year.
Affymetrix’s Q2 Revenues Rise 10 Percent
Affymetrix last week reported that its second-quarter revenue rose 10 percent, R&D costs dropped 10 percent, and a net loss swung to a small profit.
Total revenue for the three months ended June 30 rose to $88.3 million from $80.1 million year over year.
For the quarter, Affy said product revenue increased about 5 percent to $64 million; product-related revenue rose 21 percent to $17.2 million; royalties and other revenue rose 12.5 percent to $2.7 million; and revenue from Perlegen Sciences doubled to $4.4 million.
The company said GeneChip consumable revenue was $67.2 million, consisting of array revenue of $41.0 million, reagent revenue of $14.2 million, and genotyping services revenue of $7.6 million. Instrument revenue was $8.8 million for the quarter.
“We are pleased with the sequential and year-over-year top-line revenue growth driven by the strong adoption of our new SNP 6.0 genotyping product," Kevin King, Affy’s Life Sciences’ president, said in a statement. "The successful launch of this product [in May] has resulted in a number of important new global commercial agreements.”
R&D spending slipped to $19.4 million from $21.6 million in the prior-year period.
The company posted a $1.2 million profit, or $.02 per share, from a loss of $10 million, or $.15 per share, year over year.
As of June 30, Affy had $232 million in cash, cash equivalents, and short-term investments.
The company said it expects total 2007 revenue in the range of $365 million to $385 million.
Bruker BioSciences Posts 21 Percent Q2 Revenues Gain as Profits Nearly Double
Bruker BioSciences this week said second-quarter revenues increased 21 percent as R&D spending rose 13 percent and profit soared 96 percent.
Total revenues for the three months ended June 30 increased to $121.7 million from $100.5 million year over year. Part of this increase was due to the effects of foreign currency translation. Excluding these effects, second-quarter 2007 revenue increased by 17 percent year-over-year.
Product revenue increased 21 percent to $106.7 million; service revenue increased 25 percent to $15 million; and “other” revenue fell to $78,000 from $249,000 in the year-ago period.
R&D spending rose to $13.9 million from $12.3 million in the year-ago period.
Net income rose to $4.97 million, or $.05 per share, from $2.54 million, or $.02 per share, in the year-ago period.
CEO Frank Laukien said the strong revenue and “solid” increase in income came from the company’s “innovative products and solutions” and from “favorable market dynamics.”
Bruker said it had around $41.9 million in cash and short-term investments as of June 30.
Millipore’s Q2 Revenues Increase 40 Percent, But Profit Dips
Millipore said this week that its second-quarter revenues increased 40 percent as R&D spending swelled 32 percent and profit dropped 2 percent.
Total receipts for the three months ended June 30 increased to $383.2 million from $273.8 million year over year.
Sales in the company's Bioprocess segment rose 36 percent to $226.8 million, while Bioscience revenue rose 46 percent to $156.4 million. Excluding currency rate changes and acquisitions, organic revenue growth in the second quarter was 11 percent. This included 14 percent organic growth in the Bioprocess segment and 5 percent organic growth in the Bioscience segment.
Martin Madaus, chairman and CEO of Millipore, said in a statement that the company “successfully completed the integration of Serologicals in the second quarter." Millipore purchased Serologicals a year ago for $1.4 billion.
“During the intense twelve-month integration process, we met more than 800 milestones and are now operating as one company, on common systems,” he said.
Despite the company’s strong overall performance, Madaus said, "Our Bioscience Division is not delivering the double-digit organic revenue growth we expected at the beginning of the year.
"Our efforts to grow our market share and increase the productivity of our sales organization are taking longer than expected due to our focus on completing the integration," Madaus continued. For those reasons, Madaus said "we no longer expect the Bioscience Division's organic growth in 2007 to outpace the growth of the overall market."
R&D spending increased to $26 million from $19.7 million year over year, while selling, general and administrative costs over the quarter bolted up 40 percent to $123.1 million.
As a result of the increased spending, Millipore’s net income fell to $28.4 million from $29.1 million in the year-ago period.
Millipore said it had around $53.9 million in cash and cash equivalents as of June 30.
Roche Extends Offer Deadline for Ventana Buy
Roche last week said it has extended its tender offer deadline to buy Ventana Medical Systems to the close of business on Aug. 23.
Roche's original deadline lapsed last night, and the federal anti-trust waiting period passed earlier this week.
In response, Ventana reiterated that the offer remains “wholly inadequate” and that it is “significantly below our current market price.”
The offer “does not even come close to reflecting the intrinsic value of the company, its strong growth prospects in an accelerating market, and the synergy value of Ventana to Roche,” Ventana said.
BD’s Q3 Revenues Rise 11.6 Percent
Becton Dickinson last week said that fiscal third-quarter revenues rose 11.6 percent as R&D spending climbed 21 percent and profit grew 19 percent.
Total receipts for the three months ended June 30 increased to $1.63 billion from $1.46 billion year over year.
BD said revenues from its Diagnostics segment grew 15 percent to $492 million, while Biosciences revenue rose 13 percent to $258 million. Revenue from the Medical segment rose 10 percent to $882 million.
R&D spending for the quarter rose to $93 million from $77 million year over year.
Profits for the quarter increased to $244.8 million, or $.96 per share, from $206.4 million, $.81 per share, in the year-ago period.
Third Wave’s Q2 Revenues Increase 9 Percent as Loss Widens
Third Wave Technologies last week said second-quarter revenues grew 9 percent as R&D spending rose 73 percent and net loss widened 53 percent.
Total receipts for the three months ended June 30 increased to $7.4 million from $6.8 million year over year.
Revenue from clinical products rose 26 percent to $6.3 million, while receipts from research products tumbled 37 percent to $1.1 million.
"Revenue growth from our current molecular diagnostic product menu forms a strong foundation for the significant value we anticipate creating for our shareholders with our HPV products," CEO Kevin Conroy said in a statement.
R&D expenses rose to $5.2 million from $3 million the previous year.
Net loss for the period swelled to $7.2 million, or $.17 per share, from $4.7 million, or $.11 per share, year over year. Third Wave attributed the widening loss to its investment in clinical trials for its HPV product.
Third Wave had around $47.8 million in cash, cash equivalents, and short-term investments as of June 30.
“Third Wave continued to focus on advancing our HPV clinical trial, and growing our clinical revenue and customer base” over the quarter, Conroy said.
A judge in a US District Court in Wisconsin this week sided with the company’s definitions of its HPV patent an infringement lawsuit against Digene, which markets its own HPV test.
That development that could potentially remove a large barrier from Third Wave’s path as it pushes its HPV test to market.
The company reaffirmed its full-year 2007 guidance of $26 million to $28 million in revenues for its clinical molecular diagnostics business and $31 million to $33 million in total revenue for the year.
PerkinElmer Declares $.07 Dividend
PerkinElmer last week declared a regular quarterly dividend of $.07 per share of common stock.
The company said the dividend is payable on Nov. 9 to shareholders of record on Oct. 19.