Skip to main content
Premium Trial:

Request an Annual Quote

Qiagen Acquires Enzymatics, Inks Partnership with ArcherDX

NEW YORK (GenomeWeb) – Qiagen announced on Sunday that it has acquired the enzyme solutions unit of Enzymatics, a supplier of enzymes used in next-generation sequencing and other genetic analysis technologies in life sciences research and clinical applications, for an undisclosed amount.

Qiagen said that it expects the privately held firm to provide approximately $20 million of incremental net sales and to be accretive by approximately $.01 to its adjusted diluted EPS in fiscal year 2015.

According to Qiagen, Enzymatics' portfolio of reagents are estimated to be used in more than 80 percent of all global NGS sequencing reactions and are used across the workflows of all commercially available sequencing solutions. The acquired products will be commercialized globally through Qiagen's direct, indirect, and OEM channels.

"These solutions are a perfect fit with our leading offering of universal NGS products as well as with our strategy to develop integrated workflows that will help to drive the adoption of NGS in clinical healthcare," Qiagen CEO Peer Schatz said in a statement.

Qiagen noted that the deal was completed last month and that 50 Enzymatics employees have joined the firm and remain based at the current Enzymatics site in Beverly, Mass.

Qiagen said that it will take a business integration and acquisition-related pre-tax charge on operating income in the fourth quarter of 2014 of approximately $21 million, or approximately $.06 per share of adjusted diluted EPS, of which $18 million are non-cash items. The charges are associated with actions to reduce overlapping activities and sites, including the closing of the Gaithersburg, Md., site.

In addition, Qiagen said that it will take a restructuring-related pre-tax charge on operating income in Q4 2014 of approximately $26 million, or approximately $.08 per share, of which $20 million are non-cash items. The restructuring charges primarily involve the impairment of various technology-related assets and will not be excluded from adjusted results, it said.

In addition to the acquisition, Qiagen has entered into a partnership with ArcherDX, a developer of kits and software solutions for next-generation sequencing that Enzymatics acquired in 2013. ArcherDX, headquartered in Boulder, Colo., re-formed as an independent company following Qiagen's acquisition of Enzymatics, and will focus on the development of the Archer line of NGS products.

Under thw agreement between Qiagen and ArcherDX, Qiagen gains technology and distribution rights for NGS products based on ArcherDX's AMP chemistry, a target enrichment technology platform that enables the detection of gene fusions and other targets considered to be especially critical for personalized healthcare in oncology.

Stephen Picone, co-founder of Enzymatics and now executive director of corporate development at ArcherDX, said that the partnership with accelerate global adoption of the firm's technology. "In addition, this relationship positions both companies to combine their respective competencies to provide comprehensive solutions for our pharmaceutical customers requiring companion diagnostics for precision medicine," he added.

Qiagen also reaffirmed its guidance for adjusted net sales growth of approximately 4 percent at constant exchange rates for both Q4 2014 and the full year.