SAN DIEGO and MENLO PARK, Calif., June 17 /PRNewswire-FirstCall/ -- Gen-Probe
Incorporated (Nasdaq: GPRO) and Pacific Biosciences announced today
that Gen-Probe has made a $50 million
strategic investment in Pacific Biosciences, a private sequencing
company. In addition, the companies will work together to
explore co-development of new integrated clinical diagnostics
systems based on Pacific Biosciences' Single Molecule Real Time
(SMRTâ˘) platform and Gen-Probe's expertise in diagnostics.
Gen-Probe and Pacific Biosciences will initially collaborate on
an exclusive basis for up to 30 months, with the goal of developing
a longer-term, preferred business relationship aimed toward
improving the diagnosis of human diseases. The companies can
also purchase certain of each others' products on preferential
terms.
"We believe Pacific Biosciences' third-generation,
single-molecule sequencing technology has the potential to play an
important long-term role in strategically valuable, high-growth
clinical diagnostics markets such as oncology, transplant
diagnostics and pharmacogenomics due to its fast time to result,
long read lengths, and ability to interrogate broad genomic regions
in high resolution," said Carl Hull,
Gen-Probe's president and chief executive officer. "We are
excited to collaborate with Pacific Biosciences to develop an
innovative sequencing system based on their best-in-class
technologies."
Pacific Biosciences' SMRT DNA sequencing is expected to be a
transformative technology that enables a new paradigm in genomic
analysis. It enables, for the first time, the observation of
natural DNA synthesis by a DNA polymerase as it occurs. The
approach is based on eavesdropping on a single DNA polymerase
molecule working in a continuous, processive manner.
"We see a significant opportunity for our SMRT platform in the
molecular diagnostics market and are taking a proactive and
strategic approach by collaborating with Gen-Probe, a proven leader
in developing fully automated instrument systems for nucleic acid
testing," said Hugh Martin, chairman
and chief executive officer of Pacific Biosciences. "We
believe Gen-Probe's expertise in instrument systems engineering and
sample preparation, combined with their capabilities in clinical
and regulatory affairs, will help us maximize the potential of our
sequencing technology to benefit human health."
Gen-Probe's $50 million investment
is part of a larger Series F private round of financing by Pacific
Biosciences.
About Pacific Biosciences
Pacific Biosciences' mission is to transform the way humankind
acquires, processes and interprets data from living systems.
The company has developed a disruptive technology platform
for the real-time detection of biological events at single molecule
resolution. Single Molecule Real Time (SMRT) Biology is
designed to revolutionize life sciences by revealing the underlying
networks that define living systems. The first application
for the SMRT Biology platform is a paradigm changing approach to
DNA sequencing. The SMRT Sequencing System should ultimately
make it possible to sequence individual genomes as part of routine
medical care. DNA sequencing is expected to be the first of
many transformative SMRT Biology applications that will benefit
society by driving radical advances in fields such as personalized
medicine, agriculture, clean energy, and global health.
About Gen-Probe
Gen-Probe Incorporated is a global leader in the development,
manufacture and marketing of rapid, accurate and cost-effective
molecular diagnostic products and services that are used primarily
to diagnose human diseases, screen donated human blood, and ensure
transplant compatibility. Gen-Probe has approximately 27 years of
expertise in nucleic acid testing, 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 1,300 people. For more
information, go to www.Gen-Probe.com.
As of March 31, 2010, Gen-Probe
had $534.3 million of cash, cash
equivalents and marketable securities, and $240.8 million of short-term debt. The
Company generates roughly $10 million
in free cash flow a month.
Caution Regarding Forward-Looking Statements
Any statements in this news 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 future development
efforts, possible or expected results of operations, regulatory
approvals, future milestones, growth opportunities, and plans of
management 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 these risks, uncertainties and
assumptions include but are not limited to: (i) the risk that our
effort to develop sequencing systems with Pacific Biosciences will
not be successful, (ii) the risk that any sequencing products we
develop may not be approved by regulatory authorities or receive
adequate reimbursement by payors, (iii) the possibility that the
market for the sale of our sequencing products may not develop as
expected, (iv) the risk that we will write down the value of our
investment in Pacific Biosciences, (v) the risk that our ownership
stake in Pacific Biosciences will be diluted by future financings,
(vi) the risk that we may not be able to compete effectively, (vii)
the risk that we may not be able to maintain our collaboration with
Pacific Biosciences or enter into a further collaboration with
them, (viii) the risk that our or Pacific Biosciences' intellectual
property may be infringed by third parties or invalidated, and (ix)
our involvement in patent and other intellectual property and
commercial litigation could be expensive and could divert
management's attention. This list includes 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 we face and a discussion
of our financial statements and footnotes, see documents we file
with the SEC, including our most recent annual report on Form 10-K
and all subsequent periodic reports. We assume no obligation
and expressly disclaim any duty to update forward-looking
statements to reflect events or circumstances after the date of
this news release or to reflect the occurrence of subsequent
events.
Contacts:
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Gen-Probe
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Pacific
Biosciences
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Michael
Watts
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Nicole
Litchfield
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858-410-8673
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415-793-6468
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michaelw@gen-probe.com
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Nicole@bioscribe.com
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SOURCE Gen-Probe Incorporated