Ciphergen Biosystems and Quest Diagnostics Form Strategic Alliance to Develop and Commercialize Tests Using Ciphergen's Proteomi
July 22 2005 - 11:00AM
PR Newswire (US)
Ciphergen Biosystems and Quest Diagnostics Form Strategic Alliance
to Develop and Commercialize Tests Using Ciphergen's Proteomics
Technology FREMONT, Calif. and LYNDHURST, N.J., July 22
/PRNewswire-FirstCall/ -- Ciphergen Biosystems, Inc. (NASDAQ:CIPH)
and Quest Diagnostics Incorporated (NYSE:DGX), the leading provider
of diagnostic testing, information and services in the U.S.,
announced the formation of a strategic alliance to develop and
commercialize novel proteomic diagnostic tests based on Ciphergen's
proprietary SELDI ProteinChip(R) technology. The strategic alliance
will focus on the commercialization of selected assays chosen from
Ciphergen's pipeline over the next three years. In addition, for an
aggregate purchase price of $15 million, Quest Diagnostics has
purchased 6.2 million shares of Ciphergen common stock, or
approximately 17% of shares outstanding, and a five-year warrant to
purchase an additional 2.2 million shares for $3.50 per share.
Quest Diagnostics also has agreed to loan Ciphergen up to $10
million to fund certain development activities. The loan would be
forgiven based on achieving certain milestones. Additional terms of
the agreements were not disclosed. "We are very excited about our
strategic alliance with Quest Diagnostics to develop novel
proteomic tests based on our proprietary biomarkers and ProteinChip
Systems," said William E. Rich, Ph.D., CEO of Ciphergen Biosystems.
"Together, we have the opportunity to translate biomarker discovery
into clinical diagnostic tests that will address unmet medical
needs and improve patient care." "We believe that proteomics will
play an important role in patient care, and we look forward to
pursuing our strategic alliance with Ciphergen," said Surya N.
Mohapatra, Ph.D., Chairman and Chief Executive Officer of Quest
Diagnostics. "We are building intellectual capital to create a
strong pipeline of new tests and technologies that help deliver
better patient care." About Ciphergen Ciphergen's Diagnostics
Division is dedicated to the discovery of protein biomarkers and
panels of biomarkers and their development into protein molecular
diagnostic tests that improve patient care; and to providing
collaborative R&D services through its Biomarker Discovery
Centers(R) for biomarker discovery for new diagnostic tests as well
as pharmacoproteomic services for improved drug toxicology,
efficacy and theranostic assays. Ciphergen's Biosystems Division
develops, manufactures and markets a family of ProteinChip(R)
Systems and services for clinical, research, and process proteomics
applications. ProteinChip Systems enable protein discovery,
characterization, identification and assay development to provide
researchers with predictive, multi-marker assay capabilities and a
better understanding of biological function at the protein level.
Additional information about Ciphergen can be found at
http://www.ciphergen.com/. Safe Harbor Statement Note Regarding
Forward-Looking Statements: For purposes of the Private Securities
Litigation Reform Act of 1995 (the "Act"), Ciphergen disclaims any
intent or obligation to update these forward-looking statements,
and claims the protection of the Safe Harbor for forward-looking
statements contained in the Act. Examples of such forward-looking
statements include statements regarding the continuation of the
strategic alliance between Ciphergen and Quest Diagnostics, the
diagnostic tests that Ciphergen Diagnostics is developing, the
predictive diagnostic value of protein biomarkers, and the
expectation that protein multi-marker tests will address unmet
clinical needs and improve patient care. Actual results may differ
materially from those projected in such forward-looking statements
due to various factors, including the ability of Ciphergen to
successfully discover, validate and assay biomarkers and patterns
of biomarkers that have diagnostic utility and which then can be
successfully commercialized, and the continuation of the strategic
alliance with Quest Diagnostics. Investors should consult
Ciphergen's filings with the Securities and Exchange Commission,
including its Form 10-Q dated May 10, 2005, for further information
regarding these and other risks of the Company's business.
Ciphergen, ProteinChip and Biomarker Discovery Center are
registered trademarks of Ciphergen Biosystems, Inc. About Quest
Diagnostics Quest Diagnostics is the leading provider of diagnostic
testing, information and services that patients and doctors need to
make better healthcare decisions. The company offers the broadest
access to diagnostic testing services through its national network
of laboratories and patient service centers, and provides
interpretive consultation through its extensive medical and
scientific staff. Quest Diagnostics is a pioneer in developing
innovative new diagnostic tests and advanced healthcare information
technology solutions that help improve patient care. Additional
company information is available at:
http://www.questdiagnostics.com/. The statements in this press
release which are not historical facts or information may be
forward-looking statements. These forward-looking statements
involve risks and uncertainties that could cause actual results and
outcomes to be materially different. Certain of these risks and
uncertainties may include, but are not limited to, competitive
environment, changes in government regulations, changing
relationships with customers, payers, suppliers and strategic
partners and other factors described in the Quest Diagnostics
Incorporated 2004 Form 10-K and subsequent filings. DATASOURCE:
Quest Diagnostics Incorporated; Ciphergen Biosystems, Inc. CONTACT:
Investors - Laure Park, +1-201-393-5030, Media - Gary Samuels,
+1-201-393-5700, both for Quest Diagnostics Incorporated; or Sue
Carruthers, Investor Relations, of Ciphergen Biosystems,
+1-510-505-2233, or Web site: http://www.questdiagnostics.com/
http://www.ciphergen.com/
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