Test to identify women at risk of preterm birth with potential market value of over $500 million acquired.

Cytyc reported that it will purchase Adeza, manufacturer of women’s health products, for $452 million, or $24 per share. This represents a premium of over 54% compared to Adeza’s $15.53 closing price on Friday. Adeza opened trading on Monday at $23.75. 

Adeza’s key product, FullTerm™, The Fetal Fibronectin Test, is used to identify women at risk of preterm birth. “This technology offers clear clinical and cost benefits for maternal-fetal care,” notes Patrick J, Sullivan, cytyc’s chairman, president, and CEO, “and we believe our infrastructure, experience, and expertise in this sector will accelerate adoption of this product worldwide.”

The market opportunity for FullTerm is estimated to be in excess of $500 million worldwide, and Adeza’s current revenue for this product is approximately $50 million annually, according to Cytyc. The company expects its earnings to break even in 2007 and to be at least $0.05 accretive to 2008 diluted earnings per share with this transaction.

Adeza’s candidate for the prevention of preterm birth for patients with a history of preterm birth, Gestiva, received an approvable letter in October 2006 and has been granted orphan drug status. Cytyc predicts the worldwide market opportunity for Gestiva to be in excess of $100 million.

Previous articleCTI Creates Spin-Off to Enhance Biopharmaceutical Development
Next articleNanoInk Receives Patent Rights from Arrowhead Research