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DiagnoCure Issues Statement on Acquisition of Gen-Probe by Hologic

Tuesday, May 01, 2012 12:17 PM

QUEBEC CITY, May 1, 2012 /CNW Telbec/ - DiagnoCure, Inc. (TSX: CUR), a Quebec life sciences company that develops and commercializes high‐value cancer diagnostic tests, issued a statement today commenting on the proposed acquisition of its commercial partner Gen-Probe (Nasdaq: GPRO) by Hologic Inc. (Nasdaq: HOLX). The acquisition, announced yesterday, is being viewed favorably by DiagnoCure management who see an opportunity for the combined companies to put additional resources behind the marketing of the PROGENSA® PCA3 prostate cancer test.

"Our expectation is that the combined entity, with an expanded footprint within cancer diagnostics, will be in an even stronger position to bring PROGENSA PCA3 to physicians and patients" stated Dr. Yves Fradet, President and Chief Medical Officer of DiagnoCure. "Hologic has already demonstrated a commitment to commercializing high value tests and has an established marketing presence in this space. Importantly, we do not foresee any changes in the strategy to maximize the commercial potential of PROGENSA PCA3."

Under the terms of this transaction, announced on April 30, Gen-Probe will become a wholly-owned subsidiary of Hologic. Hologic intends to market Gen-Probe's products on a global basis, focusing on both developed and emerging markets around the world. The combined companies will have direct sales and marketing infrastructure in the U.S. and Europe as well as distribution capabilities in China and other emerging markets. The Gen-Probe brand is to be maintained and it is expected that the growth trajectory of Gen-Probe's products will be significantly enhanced. The transaction is expected to close in the second half of 2012 and is subject to the satisfaction of certain closing conditions, including approval of Gen-Probe's shareholders.

Gen-Probe received FDA approval for the PROGENSA PCA3 assay on February 15, 2012. The urine-based test is indicated for use in conjunction with other patient information to aid in the decision for repeat biopsy in men 50 years of age or older who have had one or more previous negative prostate biopsies and for whom a repeat biopsy would be recommended by a urologist based on the current standard of care, before consideration of PROGENSA PCA3 assay results. A negative PROGENSA PCA3 assay result is associated with a decreased likelihood of a positive biopsy. A prostate biopsy is required to diagnose cancer.

DiagnoCure licensed the PROGENSA PCA3 technology to Gen-Probe on an exclusive worldwide basis in November 2003. As part of the licensing agreement, DiagnoCure receives 8% royalties on cumulative sales up to $62.5 million and 16% thereafter.


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