plans to acquire Tepnel
Life Sciences for approximately £92.8 million, or $132.89 million. Such a merger would give Gen-Probe entrance into the transplant diagnostic market and expand its molecular diagnostics
Gen-Probe is offering to pay 27.1 pence per share. Directors and institutional investors holding approximately 40% of Tepnel's outstanding shares have pledged to vote in favor of the transaction. On a non-GAAP basis, Gen-Probe expects the proposed acquisition to be neutral to its 2009 EPS and accretive to its 2010 EPS.
“We believe our acquisition of Tepnel will provide immediate access to attractive growth opportunities in transplant diagnostics, genetic testing, and pharmaceutical services as well as accelerate our ongoing strategic efforts to strengthen our marketing, sales, distribution, and manufacturing capabilities in the rapidly growing European molecular diagnostics market,” comments Hank Nordhoff, Gen-Probe's chairman and CEO.
Tepnel’s human leukocyte antigens (HLA) testing products are used to match donors and recipients in anticipation of transplant surgeries as well as in the ongoing management of transplant recipients. The company also sells xMAP® multiplex assays in the field of transplant diagnostics under a development and supply agreement with Luminex. The worldwide market for HLA tests is estimated at $260 million in 2008 and is forecast to grow at a low-double-digit rate, according to Gen-Probe.
The firm also believes that Tepnel's genetic disease testing business is complementary to its molecular diagnostics activities. Tepnel’s genetic tests include diagnostics for cystic fibrosis, Down's syndrome, and familial hypercholesterolemia. Gen-Probe also anticipates leveraging Tepnel’s pharmaceutical services business to expand into companion diagnostics.