Bio-Techne to Buy Chinese Firm and Sets Possible Future Acquisition
Bio-Techne stated that it expects to grow PrimeGene sales in China and through its presence in adjacent research markets worldwide. Mr. Huisheng commented that R&D Systems China and PrimeGene have many customers in common. Sales in China accounted for 5% of Bio-Techne revenues in 2013. This is Bio-Techne’s second acquisition since Mr. Kummeth joined the company last year as CEO (see IBO 6/15/13). In 2013, the company acquired Bionostics, which provides control solutions for IVD devices. CyVek introduced the CyPlex system and assays this month.
Washington, DC 4/1/14; Minneapolis, MN 4/4/14; Minneapolis, MN 4/15/14—The R&D Systems subsidiary of Techne, now doing business as Bio-Techne, has agreed to acquire Shanghai PrimeGene Biotech (PrimeGene) for an undisclosed amount. PrimeGene develops, manufactures and distributes recombinant proteins for research and diagnostic applications, and had 2013 sales of $4 million. “The PrimeGene business expands our regional manufacturing capabilities, creating more critical mass for our rapidly growing China business and complements our existing product portfolio by adding over 400 new protein products,” stated Bio-Techne President and CEO Charles R. Kummeth. Wang Huisheng will continue to serve as general manager of PrimeGene. The acquisition is expected to close in the fourth quarter. Bio-Techne also announced a $10 million equity investment in CyVek for a 20% share of the company, with a commitment to acquire the company based on future milestones. CyVek developed and sells the CyPlex immunoassay technology. If Bio-Techne acquires CyVek, it will make an initial payment of $60 million, subject to adjustments, and an additional $35 million payment based on milestones, according to a Bio-Techne SEC filing. The milestones include the sale of the CyPlex analyzer to at least 10 customers and the sale of at least 500 CyPlex cartridges. Antibodies from Techne’s R&D Systems business will be used on the CyPlex platform.
