Gen-Probe To Acquire Prodesse

Gen-Probe has signed an agreement to acquire Prodesse for approximately $60m in cash. Gen-Probe’s purchase price could increase to up to $85m if Prodesse achieves certain financial and regulatory milestones in 2010 and 2011.

Reportedly, in connection with the acquisition, both the firms have signed an agreement under which Gen-Probe’s sales representatives in the US, Canada and Europe will begin co-promoting Prodesse’s products in mid-October.

Both the companies’ boards of directors have unanimously approved the transaction, and the Prodesse shareholder votes necessary to approve the transaction have already been obtained. The transaction is expected to close within a month, subject to customary conditions.

Carl Hull, president and CEO of Gen-Probe, said: “We believe acquiring Prodesse supports our strategic focus on commercialising differentiated molecular tests for infectious diseases. The acquisition is expected to boost our near-term earnings and revenue growth by providing additional assays for our experienced sales force to promote to our global customer base.”

Tom Shannon, president and CEO at Prodesse, said: “Our acquisition by Gen-Probe validates the significant progress we have made in developing and commercialising molecular assays that help doctors and laboratories diagnose respiratory and other infectious diseases more accurately than traditional methods.”