Gen-Probe to Consolidate Industrial Assets Into New, Independent Company
September 14 2009 - 7:00AM
PR Newswire (US)
- Roka Bioscience to Develop Rapid, Accurate Molecular Tests for
Biopharmaceutical Production Processes, Water and Food Testing, and
Other Fields - - Transaction Enables Gen-Probe to Focus on Human
Diagnostic Opportunities - SAN DIEGO, Sept. 14
/PRNewswire-FirstCall/ -- Gen-Probe Incorporated (NASDAQ:GPRO)
announced today that it is spinning off its industrial testing
assets into a new, independent company focused on developing rapid,
highly accurate molecular assays for biopharmaceutical production,
water and food safety testing, and other applications. Gen-Probe
initially will own 19.9% of the new company, Roka Bioscience, Inc.
Affiliates of leading private equity firms OrbiMed Advisors, TPG
(TPG Biotechnology) and New Enterprise Associates have agreed to
provide Roka up to $37.2 million in aggregate equity funding to
complete development of several industrial assays and Gen-Probe's
Closed Unit Dose Assay (CUDA) system, a fully integrated, portable
testing instrument that can deliver highly accurate molecular
results in approximately one hour. "We believe establishing a
highly focused, standalone company is the best way to maximize the
considerable long-term potential of our molecular technologies in
industrial markets," said Carl Hull, Gen-Probe's president and
chief executive officer (CEO). "Our ownership position enables us
to participate in Roka's long-term success, while allowing us to
concentrate Gen-Probe's internal resources and core competencies on
clinical opportunities in infectious disease testing, blood
screening, transplant diagnostics and oncology." Eighteen former
Gen-Probe employees with expertise in industrial fields have joined
Roka, which will begin operating as an independent company
immediately. Gen-Probe also will contribute to Roka its CUDA
system, other industrial assets, and the right to use certain of
its technologies and related know-how in industrial markets. In
addition to biopharmaceutical production and water and food safety
testing, these markets include veterinary, environmental and
bioterrorism testing. Roka also will have rights to develop certain
infection control tests for use on the CUDA system. Gen-Probe will
receive royalties on any potential Roka product sales, and retain
rights to use the CUDA system for clinical applications. In
addition, Gen-Probe will provide contract manufacturing and certain
other services to Roka on a transitional basis. The spin-off is
expected to have no material effect on Gen-Probe's 2009 earnings,
as reductions in operating expenses will be offset by lower
collaborative research and product revenues. Gen-Probe's industrial
testing collaborators, Millipore and GE Water (a division of GE
Energy, a business unit of General Electric), have agreed to the
transfer of their respective collaborations with Gen-Probe to Roka.
Gen-Probe's collaboration with Millipore is focused on developing
microbial detection assays to ensure the purity of
biopharmaceutical production processes, while the Company is
working with GE to develop rapid molecular tests to detect
microbial contamination in industrial water. Roka's CEO is Paul G.
Thomas, an experienced healthcare executive who recently was
chairman, president and CEO of LifeCell Corporation, a regenerative
medicine company, before it was sold to Kinetic Concepts, Inc., for
$1.8 billion in 2008. During his tenure at LifeCell, annual product
revenues increased from $7.2 million in 1998, to $190 million in
2007. "I am excited to have the opportunity to lead a talented
group of scientists and engineers who are striving to revolutionize
industrial testing markets with high-performance molecular assays
and systems," Mr. Thomas said. "We will pursue our shared vision
based on a robust technology platform, two top-notch commercial
partners, and strong financial backing." About Gen-Probe Gen-Probe
Incorporated is a global leader in the development, manufacture and
marketing of rapid, accurate and cost-effective nucleic acid tests
(NATs) that are used primarily to diagnose human diseases and
screen donated human blood. Gen-Probe has more than 25 years of NAT
expertise, and received the 2004 National Medal of Technology,
America's highest honor for technological innovation, for
developing NAT assays for blood screening. Gen-Probe is
headquartered in San Diego and employs approximately 1,200 people.
For more information, go to http://www.gen-probe.com/. Caution
Regarding Forward-Looking Statements Any statements in this press
release about Gen-Probe's expectations, beliefs, plans, objectives,
assumptions or future events or performance are not historical
facts and are forward-looking statements. These statements are
often, but not always, made through the use of words or phrases
such as believe, will, expect, anticipate, estimate, intend, plan
and would. For example, statements concerning new industrial
products, customer adoption of these products, and results of
future R&D studies are all forward-looking statements.
Forward-looking statements are not guarantees of performance. They
involve known and unknown risks, uncertainties and assumptions that
may cause actual results, levels of activity, performance or
achievements to differ materially from those expressed or implied.
Some of the risks, uncertainties and assumptions that could cause
actual results to differ materially from estimates or projections
contained in the forward-looking statements include but are not
limited to: (i) the risk that Roka's development of industrial
assays and platforms, including the CUDA system, will not be
successful; (ii) the risk that these or other new products will not
be adopted by customers; (iii) the possibility that the value of
Gen-Probe's investment in Roka will decline, potentially resulting
in a charge to the Company's earnings; (iv) the risk that Roka and
its partners may not be able to compete effectively; (v) the risk
that Roka may not be able to maintain its current corporate
collaborations and enter into new corporate collaborations or
customer contracts; and (vi) the risk that third parties may not
distribute Roka's products effectively. The foregoing describes
some, but not all, of the factors that could affect our ability to
achieve results described in any forward-looking statements. For
additional information about risks and uncertainties Gen-Probe
faces and a discussion of the Company's financial statements and
footnotes, see documents filed with the SEC, including the most
recent annual report on Form 10-K and all subsequent periodic
reports. We assume no obligation and expressly disclaim any duty to
update any forward-looking statement to reflect events or
circumstances after the date of this news release or to reflect the
occurrence of subsequent events. Contact: Michael Watts Vice
president, investor relations and corporate communications
858-410-8673 DATASOURCE: Gen-Probe Incorporated CONTACT: Michael
Watts, Vice president, investor relations and corporate
communications of Gen-Probe Incorporated, +1-858-410-8673 Web Site:
http://www.gen-probe.com/
Copyright
GoPro (NASDAQ:GPRO)
Historical Stock Chart
From Jun 2024 to Jul 2024
GoPro (NASDAQ:GPRO)
Historical Stock Chart
From Jul 2023 to Jul 2024