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Bio-Rad acquires Ciphergen's instrument business.

Hercules, CA 8/14/06; Fremont, CA 8/14/06 -- Bio-Rad Laboratories has agreed to acquire Ciphergen Biosystems' ProteinChip Systems and technology rights to Surface Enhanced Laser Desorption/Ionization (SELDI) technology, including arrays and software, for $20 million in cash. Ciphergen retains exclusive rights to the technology for the diagnostic market. Bio-Rad will also make a $3 million equity investment in Ciphergen and will supply the company with instruments and reagents. "With Bio-Rad as a strategic partner, Ciphergen can accelerate its transformation into a leading specialized diagnostics provider," stated Ciphergen President and CEO Gail S. Page. "Importantly, Bio-Rad has significant expertise, a broad, existing life sciences customer base and a commitment to continue to develop the SELDI platform." The acquisition is expected to close in the fourth quarter.

Bio-Rad's sales force could provide a new market push for SELDI, however, the company may be betting on the eventual development of diagnostic applications to drive technology sales. The acquisition also gives Bio-Rad access to mass spectrometry and biochip array technologies. In 2005, Ciphergen's product revenues fell 42% to $18.4 million as sales of ProteinChip Systems dropped 54%. Sales of ProteinChip Systems and related products accounted for 82% of revenues last year. (For second quarter results for Bio-Rad and Ciphergen, see page 12.)
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Title Annotation:Executive Briefing: News, Trends & Market Intelligence for Instrument Executives
Publication:Instrument Business Outlook
Date:Aug 15, 2006
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