UPPSALA, Sweden, March 10, 2005 (PRIMEZONE) -- Biacore International AB (SSE:BCOR) announces today that it has completed the acquisition of FLEXChip System and related assets from the U.S. company HTS Biosystems Inc. The acquisition, costing USD 4 million in cash, will extend Biacore's product offering and is in line with the Company's strategy of building on its leading global position in the field of protein interaction analysis.
FLEXChip System, together with the company's own array-based system that started its commercial roll out in October 2004, gives the Company an unrivalled position for the application of array technology in the fast emerging protein array market. Biacore will offer solutions to meet the needs of customers working in research through to drug discovery and protein therapeutic development. In 2004, the protein array market was estimated to be worth over USD 120 million and is forecast to grow to over USD 540 million by 2008*.
FLEXChip System provides an open, array-based platform for kinetic screening within academia and upstream exploratory research. The system will appeal to a wide number of customers who require the ability to simultaneously study the interactions of hundreds of proteins and peptides against a single sample. As with all of Biacore's systems, FLEXChip System utilizes the phenomenon of Surface Plasmon Resonance (SPR) for label-free, real-time interaction analysis. Biacore anticipates that, over time, this system will open up new research applications. Customer surveys conducted by Biacore as part of the acquisition process have clearly highlighted the complementary nature of FLEXChip System with the Company's current product offering. All of the customers surveyed were using a Biacore product downstream of FLEXChip System. Looking ahead, Biacore expects to be able to evolve FLEXChip System by applying in-house expertise, particularly in the field of surface chemistry, to develop further the product's application scope. FLEXChip System complements Biacore's own array-based system, currently in the initial stages of commercialization. This system provides quantitative, multiplexed screening in an open format as demanded further downstream for applications run in proteomics institutes, pharmaceutical and biotechnology companies.
Biacore believes that FLEXChip System is an important addition to the Company's business and will enhance its long-term sales and earnings growth. Over the next eighteen months it is expected to be broadly neutral to the Company's earnings due to the negative impact of the amortization and depreciation of the assets being acquired being offset by the sales and marketing synergies which can be achieved with Biacore's existing organization.
Erik Wallden, President and CEO of Biacore, said: "I am delighted that we have been able to conclude this acquisition which will strengthen our overall product portfolio. The combination of FLEXChip System with our own existing portfolio will allow us to leverage our expertise in protein interaction analysis to become the leading player in the rapidly emerging protein array market. By targeting different customer groups with varying application needs I am sure that we will be able to benefit from the growing opportunities that will appear over the next five to ten years. FLEXChip System has already been introduced to the market and we are particularly encouraged by the positive customer feed back regarding the quality of the product and its ease of use. The feedback we received has reinforced our view of the potential for both of these complementary array products that we can now offer." Greg Freitag, CEO of HTS Biosystems Inc, said: ``HTS is excited to place its first developed product, the FLEXCHIP Kinetic Analysis system, with the world leader in protein characterization and Surface Plasmon Resonance technologies. Our grating coupled array based technology is a synergistic fit with Biacore's products and their knowledge and capabilities in this area will bring continued success."
(*) "Protein Biochips, Parallelized Screening for High Output Biology" BioPerspectives and Bachmann Consulting, 2004
CONFERENCE CALL
Following Biacore's acquisition of FLEXChip System, the Company invites interested parties to a conference call today, Thursday, March 10, at 3.00 p.m. CET (which is 9.00 a.m. EST and 2.00 p.m. UK time). To take part in the conference, please call +46 8 505 20114 shortly before it is due to start.
A replay of the conference will be available until March 31 by calling +46 8 505 20333, access code 650229.
About Biacore
Biacore is a global supplier of systems for protein interaction analysis, an area of increasing importance for scientists in the academic, pharmaceutical, biotechnology and diagnostic markets. The Company's systems generate unique data on the interactions between proteins and other molecules, including small molecules such as drug candidates. During research, development and manufacture, these data give insights into protein functionality, elucidate disease mechanisms and play a key role in the critical decisions needed for efficient development and production of therapeutics.
Biacore's products are used in key areas such as antibody characterization, proteomics, lead characterization, immunogenicity, biotherapeutic development and production. The Company offers a range of products to meet specific application needs. Customers include leading life science research centers, all of the leading global pharmaceutical companies, and a large number of companies in the emerging biotechnology sector.
Biacore also markets food analysis solutions, providing key manufacturers with a system and ready-to-use kits for the determination of food quality and safety.
The company has its own direct sales capability in the world's key markets (United States, Europe, Japan, Australia) and a distribution network in Asia-Pacific. Biacore was founded in 1984 and is listed on the Stockholm Stock Exchange (SSE:BCOR). Biacore is a trademark of Biacore AB. Further information on Biacore can be found at: www.biacore.com
Cautionary Statement This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, which, by their nature, involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
About HTS Biosystems
HTS is a recognized developer of next-generation, high-throughput bio-analytical systems and related comsumables for the rapidly expanding proteomics, biodefense and medical diagnostics markets. HTS's Proteomatrix(TM) portfolio of intellectual property, collaborations, manufacturing and development capabilities and technologies, allowed it to successfully complete the development and launch of the FLEXCHIP Kinetic Analysis System. With the sale of the FLEXCHIP system complete, HTS is positioned to leverage its Proteomatrix portfolio. HTS Biosystems looks to expand its Proteomatrix portfolio by acquiring and developing promising technologies and collaborating with developers and providers of new complementary technologies. For more information, visit www.htsbiosystems.com
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