Abbott acquires Ibis Biosciences
12 January 2009
Abbott has exercised its option to purchase the remaining equity
ownership in Ibis Biosciences, Inc., an Isis subsidiary, for a closing
purchase price of $175 million. In addition to the closing purchase
price, Isis will receive earn out payments from Abbott tied to
post-closing sales of Ibis systems, including instruments and assay
Earlier in 2008, Abbott invested $40 million in Ibis in exchange for
approximately 18.6% of Ibis' outstanding equity. This investment, along
with the $175 million that would be due at closing, would result in a
total acquisition price of $215 million plus earn out payments. The
closing of the acquisition is expected to occur this month.
"Abbott's confidence in Ibis is reflected in its decision to invest
in Ibis' technology and to exercise its option to purchase Ibis. We have
already presented development plans for the next-generation instrument
that will facilitate our rapid growth into clinical diagnostics," said
Michael Treble, President of Ibis. "This year we have made substantial
progress by advancing our broad pathogen detection and characterization
capabilities and establishing a foundation for our commercial clinical
diagnostic products. We look forward to continuing this progress."
"The broad applicability of Ibis' technology has been demonstrated in
biodefense applications, microbial forensics and infectious disease
detection and surveillance, and we believe that it has the potential to
be a powerful tool in the detection and surveillance of infectious
diseases in the hospital and clinical settings," added Stafford O'Kelly,
Vice President, Molecular Diagnostics, Abbott.
"Ibis is an example of Isis' broad innovation, and will provide
substantial benefit to our shareholders, both now as well as in the
future, as Isis receives earn out payments associated with sales of Ibis
products," said Stanley Crooke, M.D., Ph.D., Chairman and CEO of Isis.
"Ibis has refined its approach toward larger commercial markets, and we
believe its relationship with Abbott will allow Ibis to continue to move
quickly forward along this path."
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