Nanogen Closes Acquisition of Point-of-Care Cardiac Diagnostic Test Business From Spectral Diagnostics

Feb 07, 2006, 00:00 ET from Nanogen, Inc.

    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
     Forward-Looking Statement
     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.