UPPSALA, Sweden, Oct. 14, 2003 (PRIMEZONE) -- Pyrosequencing AB (Stockholm PYROA) (Other OTC:PYRSF) announces that the Company has entered into an agreement with Dyax Corp. ("Dyax") to acquire Biotage LLC ("Biotage"), a wholly-owned subsidiary of Dyax for approximately $ 35 million in cash. The Company plans to take over mortgage on Biotage's newly built premises in Virginia, which will reduce the purchase price to approximately $ 30 million. Through the acquisition, the product line Medicinal Chemistry will be strengthened with a supplementary product portfolio of purification and separation systems. Increased turnover and substantial operational synergies enhance the possibility for Pyrosequencing to reachprofitability faster.
"The acquisition of Biotage is an important step in the consolidation phase we initiated at the beginning of the fall. Through the acquisition we create a solid base in the US, our single largest market. As the customers for Biotage and our product line Medicinal Chemistry are the same, we foresee significant operational synergies. Additionally we estimate the annual cost synergies to amount to approximately $ 4 million," said Pyrosequencing's Chairman and CEO Jeff Bork.
Biotage is a market leader within small-molecule drug discovery purification and separation systems. The company reported net sales of $23.2 million in 2002. The company has 126 employees.
Pyrosequencing recently acquired Personal Chemistry. After the merger, the new company has two product lines; Genomics and Medicinal Chemistry. Pro forma 2002 the company reported net sales of 202 MSEK. Pyrosequencing will have approximately 150 employees after the recently announced cutbacks.
Customary mutual legal and financial due diligence is completed. After estimated completion of the acquisition by the end of October, Pyrosequencing will control 100% of the shares in Biotage.
Income Pyrosequen- Biotage "Newco" Pyrosequen- Biotage "Newco"
statement cing Jan-Dec Jan-Dec cing Jan-June Jan-June
MSEK
Jan-Dec2002 2002 2002 Jan-June2003 2003 2003
Pro forma Pro forma
Net sales 202 225 427 72 87 159
Cost of -72 -98 -170 -29 -38 -67
goods sold
Gross Profit 130 128 258 43 49 92
Other oper. -415 -130 -545 -185 -57 -242
Expenditures
Restructuring -11 0 -11 -6 0 -6
costs
Operating -296 -2 -298 -149 -8 -157
income
About Pyrosequencing
Pyrosequencing aims to accelerate the drug discovery and developmentprocess by providing complete solutions for applied genetic analysis andmedicinal chemistry research. Through its merger with Personal Chemistrythe Company has further strengthened its customer base of commercial andacademic partners, which include the world's top 20 pharmaceuticalcompanies and prestigious academic institutes such as the US NationalInstitutes of Health, the US Centers for Disease Control and Preventionand Sweden's Karolinska Institute. Headquartered in Uppsala, Sweden,Pyrosequencing has facilities in Boston, USA, Cambridge, UK andConstance, Germany. The Company will have approximately 150 employeesand had net sales of MSEK 202 in 2002. The Company is listed on theStockholm Stock Exchange. For more information visitwww.pyrosequencing.com
About Biotage
Biotage, LLC., a wholly owed subsidiary of Dyax Corp. (Nasdaq: DYAX) of Cambridge, MA, is a global industry leader in small-molecule drug discovery purification systems and consumables for the pharmaceutical industry. Its worldwide headquarters are located in Charlottesville, Virginia, USA with offices in Canada, England, France, Germany, Italy, and Japan. For additional information, visit www.biotage.com.
Further information: Pyrosequencing Jeff Bork Chairman and CEO jeff.bork@pyrosequencing.com +46 734-22 16 60
Certain statements in this press release are forward-looking. These maybe identified by the use of forward-looking words or phrases such as"believe," "expect," "intend," and "should," among others. These forward-looking statements are based on Pyrosequencing's current expectations.The Private Securities Litigation Reform Act of 1995 provides a "safeharbor" for such forward-looking statements. In order to comply with theterms of the safe harbor, Pyrosequencing notes that a variety of factorscould cause actual results and experience to differ materially from theanticipated results or other expectations expressed in such forward-looking statements. Such uncertainties and risks include, but are notlimited to, risks associated with management of growth and internationaloperations (including the effects of currency fluctuations), variabilityof operating results, the commercial development of the DNA sequencingand genomics market, nucleic acid-based molecular diagnostics market,and genetic vaccination and gene therapy markets, competition, rapid orunexpected changes in technologies, fluctuations in demand forPyrosequencing's products (including seasonal fluctuations),difficulties in successfully adapting the Company's products tointegrated solutions and producing such products, and the Company'sability to identify and develop new products and to differentiate itsproducts from competitors.
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