MDS to Acquire Molecular Devices, Combine with MDS Sciex for New Unit
MDS announced this week it has made an offer to buy Molecular Devices for $615 million.
The transaction, subject to regulatory approval, would combine Molecular Devices with MDS Sciex, a manufacturer of mass spectrometers and other instruments and technologies, to form a new business unit with more than 1,100 employees including 250 scientists and engineers, the companies said.
“This acquisition transforms Sciex from what is today, a category killer in mass spectrometry, into a much broader platform for growth,” said Stephen DeFalco, president and CEO of MDS.
MDS Sciex has joint venture agreements with Applied Biosystems and PerkinElmer to develop and manufacture mass spectrometers. Andy Boorn, president of MDS Sciex, said the three companies will continue to invest in their MS technology.
Under terms of the transaction, MDS will pay $35.50 for each share of Molecular Devices. The purchase comprises $585 million in outstanding shares and $30 million in outstanding stock options.
The deal is expected to add $190 million in revenues to MDS. Anticipated synergies are projected at $10 million to $12 million for the first year and $15 million to $17 million in the second year, the companies said. The deal is anticipated to close during the second quarter.
Revs Climb 10 Percent at PerkinElmer, Profits Fall 78 Percent
PerkinElmer posted a 10 percent increase in revenues for the fourth quarter while net income plummeted by 78 percent, the company announced last week.
For the three months ended Dec. 31, the company’s revenues rose to $427 million from $387.7 million a year ago. Net income fell to $41.7 million from $187.5 million during the year-ago period. During the fourth quarter of 2005, PerkinElmer reported a gain of $190.9 million on the disposition of discontinued operations.
The company’s Life and Analytical Sciences division grew revenues by 12 percent to $320.6 million during the quarter compared to a year ago, while its Optoelectronics division grew revenues 5 percent to $106.3 million.
The company spent $27.1 million on R&D and had $191.1 million in cash and cash equivalents.
This week the company said that its board of directors has adopted amendments to the company’s articles of organization and bylaws to implement a majority voting standard for the election of directors. The move is subject to shareholder approval at PerkinElmer’s annual meeting in April.
Board members who have holdover status but who fail to be re-elected must tender a resignation under the new standard. The board will then have 90 days to decide whether to accept the resignation and announce its decision. The board has also adopted an advanced notice bylaw that would require shareholders to nominate a director at least 75 days before the first anniversary of PerkinElmer’s prior annual meeting.
ABRF Extends Deadline for Study Sample Data Submission
The Association of Biomolecular Research Facilities has extended the deadline for data submission for the Proteomics Standards Research Group study sample to Feb. 5 from Jan. 29. Data can be submitted here, and supporting files can be uploaded here.
ABRF recommends that participants use SwissProt as the database of reference for protein identifications. It also asks that participants submit any data, even incomplete information, as it is interested in unsuccessful analyses as well as successful ones. All results will be compiled anonymously, ABRF said.
Bruker Predicts Revs Up by as Much as 26 Percent for Q4
Bruker BioSciences said this it expects revenues will grow by 22 percent to 26 percent during the fourth quarter when it reports its earnings on Feb. 22. The final results are not yet complete and audited results could be different when they are released, the company said.
For the quarter, revenues grew to between $130 million and $135 million, up from $106.8 million during the fourth quarter of 2005. Earnings are expected to be between $.07 and $.09 per diluted share, compared to $.05 per diluted share during the year-ago period.
For full-year 2006, the company expects to report revenues of between $430 million to $435 million and earnings, a growth of 15 percent to 17 percent from $372.3 million recorded for full-year 2005. Earnings are expected to be in the range of $.15 to $.17 per diluted share, compared to $.10 per diluted share during the year-ago period.
Financial results reflect the pooling of Bruker’s financials to account for its purchase of Bruker Optics in July, the company said.
Bruker’s Daltonics division houses most of its proteomics tools. The company no longer breaks out financial results for its different divisions.
Q4 Revs Rise 6 Percent, Profits Dip 26 Percent at Biosite
Biosite reported this week its fourth-quarter revenues rose 6 percent to $76.9 million from $72.4 million during the year-ago period. Profits for the period ended Dec. 31, 2006 fell 26 percent, however, to $10.5 million from $13.7 million.
For full-year 2006, Biosite reported revenues of $308.6 million, a 7 percent increase from $287.7 million a year ago. Profits dropped 26 percent to $40 million from $54 million.
The company spent $1.7 million on R&D during the fourth quarter, $7 million for full-year 2006. The company had $64 million in cash and cash equivalents as of Dec. 31, 2006.
Cellzome Extends Alzheimer’s Research Agreement with J&J, Ortho-McNeil
Cellzome announced this week it has extended its collaboration with Johnson & Johnson Pharmaceutical Research & Development and its affiliate, Ortho-McNeil Pharmaceutical, to develop Alzheimer’s drugs. The extension of the agreement, originally forged in March 2005, is for one year.
Other terms of the extension were not disclosed.
Under the original agreement, Cellzome provided J&J its Amyloid Precursor Protein processing pathway map containing new drug targets, its chemical proteomics technology, and novel small molecules targeted at gamma secretase.
The companies are now extending the collaboration to find leads “against additional novel targets from the APP pathway,” said Tim Edwards, Cellzome’s CEO, in a statement.