Bayer HealthCare Completes Acquisition of Visible Genetics
Leverkusen October 14, 2002 - Bayer through its Bayer Corporation has completed its acquisition of Toronto-based Visible Genetics Inc. in a cash deal valued at approximately $61.4 million. Under terms of the deal, Bayer has acquired all of VGI's outstanding common shares at a price of $1.50 per share and all of VGI's Series A preferred shares at par value plus accrued dividends. "This acquisition provides Bayer access to a proven platform for growth in one of the fastest growing segments within the diagnostics industry," said Dr Peter Knueppel, senior vice president of Bayer HealthCare Diagnostics' Nucleic Acid Diagnostics segment. "The infectious disease testing segment is expected to grow 20 percent annually through 2005 - representing worldwide sales of approximately $1 billion per year," he said.
As a result of the acquisition, Bayer HealthCare Diagnostics will gain VGI's FDA-approved automated OpenGene DNA sequencing systems and TRUGENE branded kits for the analysis of genes linked to disease. The products enhance Bayer's infectious disease portfolio and support its strategy to become a leader in the molecular diagnostics market.
"VGI's TRUGENE HIV-1 Genotyping Assay for HIV drug resistance testing and Bayer's recently approved VERSANT HIV-1 RNA 3.0 Assay (bDNA) for viral load testing are a powerful combination in the fight against HIV infection," Knueppel said.
The merging of the VERSANT family of assays and TRUGENE sequencing technologies will also allow Bayer to offer its customers access to assays that are critical in the diagnosis and management of hepatitis B and C infections. In addition, the VGI platform will be important for future applications in the management of diseases such as cancer, and inherited genetic disorders.
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