Roche to Acquire 454 Life Sciences
Roche Applied Science’s position in the research market as a supplier of PCR products should help it establish its sequencing business, which is small compared to market leader Applied Biosystems. As of December 31, 2006, 454 had an installed base of more than 60 systems. The acquisition gives Roche access to 454 technology for application in regulated diagnostics, which were excluded from its marketing agreement with 454.
Basel, Switzerland 3/29/07; Branford, CT 3/29/07—Roche has signed a definitive agreement to purchase 454 Life Sciences from CuraGen for $140 million in cash and up to $14.9 million in cash upon the exercise of stock options and warrants. Roche has exclusively distributed 454’s DNA sequencing systems since May 2005. In 2006, 454’s product revenue grew 54% to $19.4 million. “This acquisition is part of our strategy to strengthen our position as a major player in the sequencing market. Our existing collaboration is very successful and we welcome 454 Life Sciences and its employees to the Roche Diagnostics Division,” stated Severin Schwan, CEO of Roche Diagnostics and a member of Roche’s Corporate Executive Committee. CuraGen estimates it will receive $85 million from the transaction before fees and expenses. Roche plans to maintain 454’s facility in Branford, Connecticut and its 167 employees. The acquisition is expected to close in the second quarter.
