Ventana Medical Systems paid $28.9 million in cash for Spring BioScience, a developer and supplier of rabbit mAbs and other reagents. Ventana believes that the transaction will pad its diagnostic business as well as help grow its antibody design resources.
“We now have the full range of internal capabilities to develop and distribute tissue-based cancer diagnostics,” declares Christopher Gleeson, Ventana's president and CEO. “In addition, because antibody development is a principle component of almost all companion diagnostics programs, the acquisition of Spring BioScience further enhances Ventana's global leadership in the rapidly emerging area of companion diagnostics.”
Spring shareholders will earn additional milestone payments of up to $11.7 million over the next two years.
Ventana reports that the transaction is expected to be accretive to GAAP earnings per share including $0.05 in 2008 and $0.09 in 2009.