Roche to buy BioVeris for $600 million
Swiss pharmaceutical giant Roche has announced it will buy United States chemical testing instrument maker BioVeris for $600 million (SFr730 million) in cash.
Roche said on Wednesday the acquisition would allow it to expand its immunochemistry business from the human diagnostics segment into new areas, such as life science research.
The price equals about $21.50 per share, said Roche and BioVeris in a joint statement.
The deal will give Roche access to so-called electrochemiluminescence (ECL) technology that causes molecules, proteins and microbes to emit light when stimulated.
The Basel-based company said its diagnostics unit, of which the immunochemistry unit is a part, would now be able to develop into areas such as life sciences, patients self-testing, veterinary testing, and drug discovery, development and clinical trials.
“ECL is a highly innovative technology. In comparison with other detection technologies ECL offers distinct advantages such as enhanced sensitivity, short incubation times and broad measuring ranges,” said Severin Schwan, CEO of the Roche diagnostics division.
“This acquisition ensures that Roche will be able to provide unrestricted access to all customers and therefore represents a significant growth opportunity for our immunochemistry business,” Schwan added.
Growing division
Roche’s immunochemistry business is already worth $5.7 billion and is the company’s largest lab diagnostic segment. The firm says it is growing this division twice as fast as the rest of the market.
For its part, BioVeris, which is based in Maryland, said Roche was a natural buyer for the company.
Both companies’ boards of directors have approved the deal. BioVeris’ board is recommending the sale to its shareholders. If approved, also by the regulatory authorities, the deal is expected to close in the third quarter.
Cash-rich Roche has been looking to increase its portfolio. Earlier this week it paid $56.5 million for another US firm, Therapeutic Human Polyclonals, which specialises in human antibody therapies.
Roche Diagnostics recently bought 454 Life Sciences, part of Curagen, for $140 million.
Analysts have pointed to a trend of big companies eager to make use of promising know-how from small biotechnology firms.
Roche has already said that it has a policy of eschewing large mergers in favour of targeted acquisitions of focused businesses.
swissinfo with agencies
Basel-based Roche is one of the world’s largest pharmaceutical companies.
Full-year sales in 2006 were SFr42.04 billion. Roche employs 75,000 people worldwide.
BioVeris Corporation is a health care and biosecurity firm developing proprietary technologies in diagnostics and vaccinology. It is based in Maryland in the United States.
Last year it reported sales of $20.6 million. It employs around 219 people.
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