Oct. 22, 2009 (PR Newswire) --
SAN DIEGO, Oct. 22 /PRNewswire-FirstCall/ -- Gen-Probe (Nasdaq: GPRO) announced today that the Company has completed its acquisition of Prodesse, Inc., a leader in molecular testing for influenza and other infectious diseases, for approximately $60 million in cash.
Gen-Probe's purchase price could increase to up to $85 million if Prodesse achieves certain financial and regulatory milestones in 2010 and 2011.
"We are delighted to complete this acquisition ahead of schedule and welcome Prodesse's employees to Gen-Probe," said Carl Hull, Gen-Probe's president and chief operating officer. "Prodesse has had great success introducing clinically differentiated assays for infectious diseases, including influenza, and we believe our global commercial infrastructure will both facilitate and accelerate their next stage of growth."
Financial Detail
Gen-Probe financed the transaction with cash on its balance sheet.
The Company expects to record, under US GAAP, charges for non-recurring cash and non-cash costs related to the acquisition. The magnitude of these charges will not be determined, under the rules of purchase accounting, until an independent, third party valuation has been completed to allocate the purchase price to the assets and liabilities acquired. The Company has therefore not yet provided GAAP financial guidance regarding the transaction. In addition, transaction-related professional fees will be expensed as incurred, under the rules of SFAS 141R.
Excluding the charges discussed above, and on a non-GAAP basis, Gen-Probe expects the acquisition to add approximately $0.05 to the Company's 2010 earnings per share (EPS), based on approximately $15 million in total revenues. Gen-Probe expects to update its 2009 financial guidance to include the effects of the acquisition in its third quarter earnings release on October 29.
About Prodesse
Prodesse develops molecular diagnostic reagents for a variety of infectious disease applications. Prodesse sells three FDA 510(k) cleared products in the United States, and two additional CE-marked products in Europe. The company's products can be used in conjunction with various nucleic acid extraction and real-time PCR (polymerase chain reaction) platforms, including Cepheid's SmartCycler® II System.
Prodesse's ProFlu+(TM) test was cleared by the U.S. Food and Drug Administration (FDA) in January 2008 for the detection and discrimination of Influenza A Virus, Influenza B Virus and Respiratory Syncytial Virus. It is the only commercially available, FDA-cleared molecular test for these respiratory viruses that uses real-time PCR technology.
