Qiagen to Acquire Chinese Biotech Firm

(Venlo, The Netherlands; www.qiagen.com) has agreed to acquire PG Biotech Co. Ltd. (Shenzhen, China; www.szpg.com) for around U.S.$14.5 million in cash.

PG Biotech is a leading developer, manufacturer, and supplier of polymerase chain reaction (PCR)-based molecular diagnostic kits in China. It has built a substantial development, manufacturing, and marketing business in China and has received approvals for more than 10 PCR-based molecular diagnostic assays by the Chinese State Food and Drug Administration (SFDA). The company's product portfolio includes approved assays for the detection of a number of viral and bacterial pathogens, such as severe acute respiratory syndrome (SARS), hepatitis B, human papilloma virus, tuberculosis, and chlamydia. PG Biotech has established the first good manufacturing practices (GMP) plant certified by the SFDA for in vitro diagnostics. The company employs around 120 employees.

"Our solutions enable nucleic acid testing to achieve unmatched performance and regulatory compliance and can be used on a number of leading detection instruments,” said Peer M. Schatz, CEO of Qiagen. "PG Biotech's expertise in developing, manufacturing, and marketing diagnostic assays has the potential to significantly expand Qiagen's leadership position in providing molecular diagnostics solutions to our partners and customers in Asia.” Qiagen is a leading global provider of innovative enabling technologies and products for the separation, purification, and handling of nucleic acids and proteins.

Based on preliminary analyses and depending on the date of the closing, Qiagen expects this transaction to contribute around $6-7 million in sales over a period of 12 months. The company reports that its molecular diagnostics business is now expected to record sales of more than $100 million in 2006.






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