NEW YORK (GenomeWeb News) – Fluidigm disclosed in its Form 10-K this week that the fair value of its investment in Verinata Health is an estimated $3.1 million.
In its document filed with the US Securities and Exchange Commission, the South San Francisco, Calif.-based firm said it is a minority equity investor in Verinata, which was recently acquired by Illumina for $450 million. The carrying value — a measurement of an asset based on the company's balance sheet — of the investment, it added, was $1.3 million as of Dec. 31, 2012.
Under the terms of Illumina's acquisition of Verinata, it paid $350 million in cash. Based on that figure, Fluidigm estimated the fair value of its investment at $3.1 million as of Dec. 31, 2012.
Verinata is also eligible to receive milestone payments from Illumina of up to $100 million through 2015. Fluidigm said it did not factor these milestones into its fair value estimates because it is unable to assess the probability of such payments or when they would be made.
As a result, Fluidigm made a fair value estimate on its investment using Level 2 inputs, a method of evaluating a company's assets based on the degree of certainty around the asset's underlying value.