Illumina Expands Diagnostics Business and Partners with PerkinElmer
Based in California, Verinata has 125 employees. Illumina supplies its HiSeq 2000 sequencers for running the verifi test. Illumina also supplies its systems for Sequenom’s competing test and stated at an investor’s conference that it plans to remain a supplier to other companies in the market, as well as to broadly license Verinata’s intellectual property in order to grow the market and submit the test for FDA approval. According to Illumina, the non-invasive prenatal testing market is estimated to be worth $600 million in 2013.
San Diego, CA 1/7/13; Waltham, MA and Redwood City, CA 1/9/13—Illumina has agreed to acquire Verinata Health, a provider of non-invasive tests for the early identification of fetal chromosomal abnormalities, for $350 million and up to an additional $100 in milestone payments through 2015. Verinata Health’s verifi prenatal test utilizes next-generation sequencing to analyze cell-free fetal DNA to identify missing or extra copies of chromosomes that indicate the newborn’s risk for Down syndrome, Edwards syndrome or Patau syndrome. “Building on the recent acquisition of BlueGnome Ltd. and our expertise in next-generation sequencing, this announcement further establishes Illumina as a leader in reproductive health,” stated Jay Flatley, president and CEO of Illumina. The transaction is expected to be $0.20 dilutive to Illumina’s non-GAAP EPS in 2013 including the impact of synergies and accretive beginning in 2014. The verifi test will continue to be offered through Verinata’s CLIA-certified and CAP-accredited laboratory, which also acts as a reference lab to collect clinical data for future regulatory submission. PerkinElmer has announced an exclusive agreement to jointly sell and market the verifi test in the US.
