SAN DIEGO, Feb. 7 /PRNewswire-FirstCall/ -- Nanogen, Inc. (Nasdaq: NGEN)
today announced it completed the acquisition of the rapid cardiac immunoassay
test business from Spectral Diagnostics (TSX: SDI). The deal expands
Nanogen's portfolio of complementary diagnostics to include Spectral's Cardiac
STATus(R) and Decision Point(TM) product lines, the i-Lynx(TM) reader, related
intellectual property and manufacturing capabilities. Nanogen now has a fully
integrated point-of-care group with resources and capabilities in research,
product development, manufacturing, and sales and marketing with a worldwide
distribution network to compete in the $1.5 billion worldwide point-of-care
market. The total consideration for the transaction was CDN$9 million,
comprised of CDN$5.65 million in cash and CDN$3.35 million in Nanogen common
"This acquisition provides Nanogen a solid position in the cardiovascular
point-of-care market in advance of our congestive heart failure test receiving
regulatory clearance. It was another opportunity to broaden our portfolio of
rapid diagnostic tests, without research and development risk, and with
opportunities to increase both the menu of products and existing customer
base," said Howard C. Birndorf, chairman and chief executive officer of
Nanogen. "We anticipate a smooth and rapid integration of Spectral's sales
and manufacturing functions and a positive contribution to our near-term
financial results and long-term market plans."
"With the addition of these cardiac tests, Nanogen has the necessary
product line to compete in the cardiovascular point-of-care testing market,"
said David Ludvigson, president and chief operating officer. "Our
point-of-care group will continue to focus on FDA approval of a quantitative
congestive heart failure diagnostic test and the development and launch of
other complementary tests. We plan to leverage the existing customer network,
the acquired manufacturing capability and the other products in our
development pipeline to build market share."
Spectral reported nearly CDN$7 million in product revenues during 2005
from the Cardiac STATus tests and i-Lynx readers. The Cardiac STATus line
includes four FDA-cleared tests that can be used at the point-of-care to
determine elevations of cardiac markers, providing an aid to physicians to
assess and diagnose acute coronary syndrome (ACS) as indicated by chest pain.
The product line includes:
* Cardiac STATus Myoglobin, Troponin I and CK/MB Tandem 3 in 1 Test to
rule-in or rule-out ACS;
* Cardiac STATus Troponin I, the single most critical marker to determine
acute myocardial infarction (AMI);
* Cardiac STATus Myoglobin/Troponin I to aid in the diagnosis of AMI
The i-Lynx is a unique hand-held reader designed to capture and analyze
the results of the Cardiac STATus products as well as other rapid tests such
as tests for cardiovascular disease, pregnancy and infectious diseases. The
portable electronic unit offers connectivity to customers' existing laboratory
data management systems to help facilitate patient record keeping and billing
The DecisionPoint product line is the same series of cardiac marker assays
as the STATus line designed for international markets, with CE marking. The
newly acquired rapid test business also includes the capability to offer
private label brands to customers. Several distributors offer the
DecisionPoint products outside of the U.S. Cardinal Health distributes the
Cardiac STATus line and i-Lynx reader in the U.S.
Approximately 50 of Spectral's employees, including those in manufacturing
as well as a U.S. and Canadian sales force, have joined Nanogen's
point-of-care group in Toronto.
About Nanogen, Inc.
Nanogen's advanced technologies provide researchers, clinicians and
physicians worldwide with improved methods and tools to predict, diagnose, and
ultimately help treat disease. The company's products include real-time PCR
reagents, the NanoChip(R) electronic microarray platform and a line of rapid,
point-of-care diagnostic tests. Nanogen's ten years of pioneering research
involving nanotechnology holds the promise of miniaturization and continues to
be supported for its potential for diagnostic and biowarfare applications.
For additional information please visit Nanogen's website at www.nanogen.com.
This press release contains forward-looking statements that are subject to
risks and uncertainties, including statements regarding future financial and
operating performance. These forward-looking statements are based on current
expectations and speak only as of the date hereof. Actual results may differ
materially from those set forth in the forward-looking statements, as a result
of various factors and uncertainties, including whether the integration of the
Spectral business will be accomplished in an efficient and effective manner,
whether the transition to Nanogen of Spectral products and customers for
manufacture and marketing purposes will be successful, whether former
employees of Spectral can be retained by Nanogen, uncertainty concerning the
scope of intellectual property related to the biological markers and product
platforms used for rapid immunodiagnostic assays employing lateral flow
technology, whether rapid diagnostic technology will be successfully
commercialized, whether patents owned or licensed by Nanogen will be developed
into products, whether the patents owned by Nanogen offer any protection
against competitors with competing technologies, whether products under
development can be successfully developed and commercialized, and whether
unforeseen problems may impact the timing of planned product launches and
other risks and uncertainties discussed in the case of Nanogen under the
caption "Factors That May Affect Results" and elsewhere in Nanogen's Form 10-K
or Form 10-Q most recently filed with the Securities and Exchange Commission.
Nanogen disclaims any intent or obligation to update these forward-looking
SOURCE Nanogen, Inc.