Abbott invests $20 million in Ibis Biosciences

The investment will allow Ibis to further develop the Ibis T5000 Biosensor System, which reportedly offers a unique solution for rapid identification and characterization of infectious agents.

By making this investment, Abbott retains 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’s 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.

Michael Treble, president of Ibis, said: “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.”