STOCKHOLM, Sweden, Feb. 22, 2005 (PRIMEZONE) -- Biotage acquires the Consumable Division of the U.S. company Argonaut Technologies Inc. Through the acquisition, Biotage strengthens its position in Medicinal Chemistry and gives the company a complete product portfolio of Microwave Synthesis, Cleanup and Purification Systems and Consumables, which will enable faster and more efficient development of new product candidates. The acquired division reported sales of about 100 million SEK (13-14 million USD) in 2004. The sales price amounts to about 139 million SEK (19,9 MUSD).
"The acquisition substantially increases our offering in the Medicinal Chemistry market," said Jeff Bork, CEO of Biotage. "With a complete product range, we will be able to offer our customers substantial cost savings. We estimate that the acquisition will have a positive effect on our results already this year."
Following synthesis, drug candidate molecules must be isolated, or "purified," from starter chemicals or by-products. Through the acquisition of Argonaut Technologies' Consumables Business, Biotage will be able to provide the greatest range of tools to purify compounds with the highest purity. Biotage will also be able to produce its own purification media to pack in its columns, rather than rely on external suppliers. These hundreds of media alternatives will give Biotage a complete portfolio of solutions.
"The process of discovering and registering molecules is time consuming, costly and the demands on pharmaceutical scientists are constantly growing," Jeff Bork continued. "Through the acquired operations, Biotage will be able to offer our customers a complete range of `purifying technologies' to enable a much faster selection of biologically active molecules."
The acquistion, for which Biotage has received a short-term bank loan, is paid in cash. The company is evaluating different financing solutions and will present a long-term solution in short. If a new share issue is carried out, the present main shareholders HealthCap, Investor Growth Capital and Catella Healthcare have committed to guarantee the new share issue amounting to the sales price in full.
Argonaut Technologies' Consumables Division has about 100 employees. The company's facilities for product development and production are located in Cardiff, Wales. Argonaut Technologies Consumables Division had sales of about 100 million SEK (13-14 million USD) in 2004. The sales price amounts to about 139 million SEK (19,9 million USD). A final approval of the acquisition will be made by a shareholder's meeting at Argonaut Technologies.
Biotage comments the acquisiton in a telephone conference at PM 2.40 CET. To attend the telephone conference, please call tfn +46-8-600 53 81 and use the conference code 811928.
About Biotage
Biotage is a global company active in life science research with strong technologies, a broad range of operations and a long-term view of the market. The company offers solutions, knowledge and experience in the areas of genetic analysis and medicinal chemistry. Customers include the worlds top 30 pharmaceutical companies, 20 largest biotech companies and leading academic institutes. The company is headquartered in Uppsala and has offices in the U.S., Japan and several European countries. Biotage has approx. 221 employees and had sales of 366,6 MSEK in 2004. Biotage is listed on the Stockholm stock exchange. Website: www.biotage.com
About Argonaut Technologies
Argonaut Technologies is a provider of innovative consumables, instruments, and services that enable chemists to accelerate drug discovery and development. The products enable chemists to increase productivity, reduce operating costs, achieve faster time-to-market, and explore the increasing number of targets and chemical compounds available for drug development. More than 1,200 customers use Argonaut's products worldwide. Argonaut Techologies is listed on NASDAQ. Website: www.argotech.com
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