Ciphergen Stockholders Approve Sale of Life Science Research Business to Bio-Rad Laboratories
October 27 2006 - 9:00AM
PR Newswire (US)
Ciphergen Retains Exclusive Rights to Diagnostics Business FREMONT,
Calif., Oct. 27 /PRNewswire-FirstCall/ -- Ciphergen Biosystems,
Inc. (NASDAQ:CIPH) today announced that is has received stockholder
approval to sell its proprietary proteomics instrument business to
Bio-Rad Laboratories, Inc. (AMEX:BIO). Bio-Rad will purchase this
business for approximately $20 million in cash. In addition,
Bio-Rad will make a $3 million equity investment in Ciphergen.
Ciphergen expects to close the transaction on or before November 1,
2006. "With the approval of the sale of the instrument business,
Ciphergen completes its transition into a specialty diagnostics
company and is well-positioned to bring high-value molecular
diagnostics to physicians and their patients," said Gail S. Page,
President and Chief Executive Officer of Ciphergen. "The Ciphergen
management team has extensive experience in all aspects of
diagnostic development -- ranging from biomarker discovery and
validation to clinical trial design and commercialization."
Ciphergen expects to have approximately 50 employees dedicated to
introducing diagnostic tests that address unmet clinical needs in
oncology/hematology, cardiology and women's health. The Company's
initial oncology program is focused in ovarian cancer. The Company
entered a three-year strategic alliance with Quest Diagnostics in
2005 to develop and commercialize novel proteomic diagnostic tests
from its pipeline, including the first proteomics-based test for
ovarian cancer. "We anticipate that our first diagnostic test will
be used as an adjunct to other diagnostic methods to help
physicians in the differential diagnosis of a persistent pelvic
mass," continued Ms. Page. "As planned, we are initiating a
prospective clinical trial to support our submission to the FDA for
clearance as an in vitro diagnostic test in the U.S. and to
additional regulatory agencies in other countries." Bio-Rad
Transaction Details Under the terms of the transaction agreements,
Bio-Rad will manufacture, sell and market the Surface Enhanced
Laser Desorption/Ionization (SELDI) technology to the life sciences
market for proteomics applications that include biomarker
discovery, characterization and validation. Ciphergen will retain
exclusive rights to the diagnostics market. In addition, Ciphergen
will enter into a supply agreement with Bio-Rad whereby Ciphergen
will purchase instruments and consumables for the continued
development of its diagnostics business. Conference Call Planned to
Review Corporate Progress Management will host a conference call
and webcast on Tuesday, November 7, 2006 at 10:00 a.m. ET to
provide a detailed update on its focus and plans for establishing
Ciphergen as a leading diagnostics services company. The Company
plans on releasing its third quarter 2006 financial results before
markets open on November 7, 2006. To listen to the live webcast of
the conference call, please visit the "Investors" section of the
http://www.ciphergen.com/ web site. A telephonic replay of the
conference call will be available two hours after the call and will
be available until Tuesday, November 21, 2006. The replay number
for domestic callers is 1-800-633-8284 and for international
callers +1-402-977-9140. The reservation number for both domestic
and international callers is 21308074. In addition, an archived
webcast of the conference call will be available under the
"Investors" section of the company's website at
http://www.ciphergen.com/ . About Ciphergen Ciphergen Biosystems,
Inc. is dedicated to the discovery, development and
commercialization of novel high-value diagnostic tests that help
physicians diagnose, treat and improve outcomes for patients.
Ciphergen, along with its prestigious scientific collaborators, has
ongoing diagnostic programs in oncology/hematology, cardiology and
women's health with an initial focus in ovarian cancer. Based in
Fremont, California, more information about Ciphergen can be found
on the Web at http://www.ciphergen.com/ . Safe Harbor Statement
Note Regarding Forward-Looking Statements: This press release
contains 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 Ciphergen's
plans and ability to accelerate transition into a specialized
diagnostics company, the availability of the financial resources
necessary to build the diagnostics business, the ability of
Ciphergen to successfully commercialize diagnostic tests to aid
physicians in diagnosing ovarian cancer, oncology/hematology,
cardiology and women's health, and the expected completion of the
transaction on the terms described. Actual results may differ
materially from those projected in such forward-looking statements
due to various factors, including the risk that Ciphergen is unable
to successfully utilize resources and manage the transition to a
new business focus, the risk that Ciphergen may be unable to
successfully develop and commercialize diagnostic tests due to
scientific or regulatory issues, and the risk that the conditions
to the closing of the transaction may not be met. Investors should
consult Ciphergen's filings with the Securities and Exchange
Commission, including its Form 10-Q filed August 31, 2006, for
further information regarding these and other risks related to the
Company's business. NOTE: Ciphergen is registered trademark of
Ciphergen Biosystems, Inc. DATASOURCE: Ciphergen Biosystems, Inc.
CONTACT: investors, Sue Carruthers of Ciphergen Biosystems, Inc.,
+1-510-505-2233; or media, Daryl Messinger of WeissComm Partners,
+1-415-946-1062 Web site: http://www.ciphergen.com/
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