BioSource International signs letter of intent to acquire Operon Technologies, Inc.; Acquisition of privately-held synthetic DNA manufacturer in Alameda, Calif. would add complementary product lines, significantly increase revenue base.CAMARILLO, Calif.,--(BUSINESS WIRE)--May 5, 1995--BioSource International, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BIOI) today announced that it has signed a letter of intent to acquire Operon Technologies, Inc., a privately-held firm headquartered in Alameda, Calif., that develops and sells oligonucleotides (DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. segments) and other custom biochemical products used as reagents in biochemistry and immunology research, and in biotechnology-based development of medical diagnostics and pharmaceuticals. The acquisition would add complementary products to BioSource's current line of reagents and biochemical test kits. It also would nearly double the size of BioSource, based on the year-end 1994 revenues and employee head count of both companies. The transaction, which is expected to be completed by June 30, 1995, will be treated as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . BioSource International will acquire all of the outstanding capital stock of Operon Technologies in exchange for approximately 1.7 million shares of common stock of BioSource, which will represent approximately 24 percent of the BioSource common stock outstanding following the closing of the transaction. The acquisition is subject to a number of contingencies and conditions, including a due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. investigation to be conducted by each party and the negotiation and execution of a definitive acquisition agreement. Strategic Acquisition James H. Chamberlain, chairman, president and chief executive officer of BioSource International, described the transaction as a strategic acquisition with tremendous synergy. He noted that the combination of both companys' biochemical product research, development and manufacturing capabilities, together with BioSource's field sales, marketing and customer support operations, would have significant positive impact on the company's competitive position. BioSource International and Operon Technologies both market products to scientists and technicians employed in academic and commercial research in cell biology Cell biology The study of the activities, functions, properties, and structures of cells. Cells were discovered in the middle of the seventeenth century after the microscope was invented. , molecular biology molecular biology, scientific study of the molecular basis of life processes, including cellular respiration, excretion, and reproduction. The term molecular biology was coined in 1938 by Warren Weaver, then director of the natural sciences program at the Rockefeller and immunology. BioSource also purchases synthetic DNA products from Operon, which are used in the development of new products for genetic screening test kits and other products. "With its scientific skill set and automated manufacturing capability, Operon Technologies has become a leading provider of commercial, custom DNA synthesis DNA synthesis commonly refers to:
Company Information Operon Technologies was founded in 1986 by Dr. Robert Saul, a U.C. Berkeley researcher in DNA chemistry, and Dr. Bruce Ames Bruce Ames (born December 16, 1928), is a professor of Biochemistry and Molecular Biology at the University of California, Berkeley, and a senior scientist at Children's Hospital Oakland Research Institute (CHORI). , an internationally recognized researcher in the field of mutagenesis mutagenesis /mu·ta·gen·e·sis/ (mu?tah-jen´e-sis) 1. the production of change. 2. the induction of genetic mutation. mu·ta·gen·e·sis n. pl. and genetic toxicology. Wholly-owned by its founders and employees, the company was profitable in each fiscal year from 1990 - 1993. For the year ended December 31, 1994, the 45-employee company had a loss of approximately $200,000 on revenues of $5.2 million. BioSource International, Inc. is a Camarillo, Calif. based supplier of immunological reagents and test kits used in biomedical research Biomedical research (or experimental medicine), in general simply known as medical research, is the basic research or applied research conducted to aid the body of knowledge in the field of medicine. . The company offers more than 700 products, including recombinant proteins, monoclonal antibodies and ELISA ELISA (e-li´sah) Enzyme-Linked Immuno-Sorbent Assay; any enzyme immunoassay using an enzyme-labeled immunoreactant and an immunosorbent. ELISA n. assay kits to a variety of antigens. Incorporated in 1989, the company was listed on Nasdaq in May 1993. The company reported revenues of $6,240,147 and a net loss of $347,304 for the fiscal year ended December 31, 1994. This included a non-cash, non-recurring compensation expense of $577,452. -0- Note to Editors: This release was originally issued on Thursday, May 4, 1995. CONTACT: BioSource Anna Anderson/Aspasia Alexander, 805/987-0086 (investor relations) or FS Communications Matthew Schmidt, 415/691-1488 (press) |
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