Tepnel’s board of directors intends to recommend that its shareholders approve the transaction, which is expected to close in the second quarter of 2009. Already, directors and institutional investors holding approximately 40% of Tepnel’s outstanding shares have pledged to vote in favor of the transaction, which will be structured as a ‘scheme of arrangement’ under English law.
Gen-Probe believes that Tepnel’s genetic disease testing business is complementary to its molecular diagnostics activities. The companies anticipate that Gen-Probe’s record in the development of novel diagnostics, its commercialization capabilities, and its reputation within the clinical community will help accelerate Tepnel’s molecular diagnostics activities.
Tepnel’s pharmaceutical services business has master service agreements with a number of major pharmaceutical clients, and Gen-Probe believes its ownership of Tepnel will further strengthen these relationships. In addition, Tepnel’s activities in this segment provide Gen-Probe an opportunity to expand into the rapidly emerging market for companion diagnostics.
Ben Matzilevich, CEO of Tepnel, said: We believe Gen-Probe’s offer represents significant value for Tepnel shareholders, and recognizes both our past achievements and our future potential in molecular diagnostics and pharmaceutical services. We are excited about the opportunity to accelerate our strategic plans as part of one of the most established and highly respected molecular diagnostics companies in the world.