Abbott invests further US$20M in Ibis Biosciences' biosensor
30 July 2008
Isis Pharmaceuticals, Inc. (Nasdaq: ISIS) has announced that Abbott
has invested an additional $20 million in Ibis Biosciences, Inc., an
The investment will allow Ibis to further develop the Ibis T5000
Biosensor System, which offers a unique solution for rapid
identification and characterization of infectious agents, such as
bacteria, viruses and fungi. It can provide information about drug
resistance, virulence and strain type of these pathogens.
Potential commercial applications for the Ibis T5000 Biosensor System
include epidemiologic surveillance, monitoring of pandemic diseases,
identification of emerging or previously unknown pathogens, forensic
characterization of human samples, identification of sources of
hospital-associated infections and, in the future, human infectious
The investment allows Abbott to retain the exclusive option to
purchase the remaining equity in Ibis for an additional $175 to $190
million through June 30, 2009, depending on whether certain
pre-negotiated milestones have been completed.
If Abbott acquires Ibis, in addition to the purchase price for Ibis'
equity, Isis will receive an earn out tied to the achievement of certain
cumulative sales. Including this investment, Abbott has invested $40
million in Ibis and holds 18.6% of the equity in Ibis. The remaining
Ibis equity is owned by Isis.
"We are aggressively accelerating the expansion of our commercial
products into larger market opportunities, and this recent financing
from Abbott will provide the capital to continue on this path," said
Michael Treble, President of Ibis. "In just a few short months, we have
made significant progress toward completing milestones identified by
Abbott and Ibis that will increase the value of Ibis and move us forward
toward clinical diagnostics."