The offer of $85 per share is 53% more than the company’s value.

Beckman Coulter will shell out $1.55 billion to acquire Biosite. Commenting on this move, Scott Garrett, Beckman Coulter’s president and CEO says, “It will position Beckman Coulter as a leading provider of immunoassay tests, especially within cardiac diagnostics.”

The company’s cash offer of $85 per share represents a 53% premium over Biosite’s closing price on March 23. Consequently, Biosite’s stock jumped from $55.38 to $84. This is the highest the company has traded during the past year to date. Beckman Coulter’s value, on the other hand, dropped by 6% to open trading at $63.01.

In spite of this dip, Garrett is positive about the decision. “We expect the transaction to be accretive to GAAP earnings in 2008, and we remain on track to achieve our full-year 2007 outlook, as stated in our February 8 earnings release, excluding any impact from the Biosite acquisition.”

Garrett explains that the transaction is based on a successful four-year collaboration between the companies. The relationship revolved around B-type Natriuretic Peptide (BNP), a test that aids in the diagnosis, risk stratification, and assessment of severity of heart failure.

“Biosite utilizes third-party distributors, and more than 85% of sales come from within the United States. A major source of value in the transaction is our ability to leverage our global commercial infrastructure and installed base to expand sales of Biosite’s immunoassay tests, including BNP,” Garrett points out.

“We expect significant revenue growth resulting from the improved effectiveness of our global commercial franchise selling BNP along with other cardiac markers.

“Longer term,” Garrett adds, “we will have significant opportunities to leverage Biosite’s pipeline of novel diagnostic tests across our large installed base of automated systems in hospital laboratories. Additionally, the transaction will expand our offerings into near-patient testing, providing additional markets for many of our highest-value tests.”

The companies expect to close the transaction in the second quarter of 2007.

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