Total acquisition price will be $215 million
Acquisition will expand Abbott's position in molecular diagnostics for
CARLSBAD, Calif. and ABBOTT PARK, Ill., Dec. 17 /PRNewswire-FirstCall/ --
Isis Pharmaceuticals, Inc. (Nasdaq: ISIS) and Abbott (NYSE: ABT) announced
today that Abbott has exercised its option to purchase the remaining equity
ownership in Ibis Biosciences, Inc., an Isis subsidiary, for a closing
purchase price of $175 million. In addition to the closing purchase price,
Isis will receive earn out payments from Abbott tied to post-closing sales of
Ibis systems, including instruments and assay kits.
Earlier this year, Abbott invested $40 million in Ibis in exchange for
approximately 18.6% of Ibis' outstanding equity. This investment, along with
the $175 million that would be due at closing, would result in a total
acquisition price of $215 million plus earn out payments.
The closing of the acquisition of the remaining equity ownership in Ibis
is subject to the satisfaction of the terms and conditions of a stock purchase
agreement that has been executed by the parties, including obtaining clearance
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and is
expected to occur in January, 2009.
"Abbott's confidence in Ibis is reflected in its decision to invest in
Ibis' technology and to exercise its option to purchase Ibis. We have already
presented development plans for the next-generation instrument that will
facilitate our rapid growth into clinical diagnostics," said Michael Treble,
President of Ibis. "This year we have made substantial progress by advancing
our broad pathogen detection and characterization capabilities and
establishing a foundation for our commercial clinical diagnostic products. We
look forward to continuing this progress."
"The broad applicability of Ibis' technology has been demonstrated in
biodefense applications, microbial forensics and infectious disease detection
and surveillance, and we believe that it has the potential to be a powerful
tool in the detection and surveillance of infectious diseases in the hospital
and clinical settings," added Stafford O'Kelly, Vice President, Molecular
"Ibis is an example of Isis' broad innovation, and will provide
substantial benefit to our shareholders, both now as well as in the future, as
Isis receives earn out payments associated with sales of Ibis products," said
Stanley Crooke, M.D., Ph.D., Chairman and CEO of Isis. "Ibis has refined its
approach toward larger commercial markets, and we believe its relationship
with Abbott will allow Ibis to continue to move quickly forward along this
About Ibis T5000 Biosensor System and Ibis Biosciences, Inc.
Ibis Biosciences, Inc., a majority-owned subsidiary of Isis
Pharmaceuticals, has developed and is commercializing the Ibis T5000(TM)
Biosensor System for rapid identification and characterization of infectious
agents. The Ibis T5000 is currently intended for research use only and not
for use in diagnostic procedures. It is capable of identifying virtually all
bacteria, viruses and fungi, and can provide information about drug
resistance, virulence and strain type of these pathogens. Commercial
applications for the Ibis T5000 Biosensor System include epidemiologic
surveillance, monitoring of pandemic diseases, identification of emerging or
previously unknown pathogens, forensic characterization of human samples,
identification of sources of hospital-associated infections, and, in the
future, human infectious disease diagnostics. Ibis develops, manufactures and
markets Ibis T5000 instruments and assay kits. Additional information about
Ibis can be found by selecting the Ibis link from Isis' homepage at
About Abbott Molecular
Abbott's molecular diagnostics business, headquartered in Des Plaines,
Ill., provides physicians with critical information based on the early
detection of pathogens and key changes in patients' genes and chromosomes,
allowing for earlier diagnosis, selection of appropriate therapies and
monitoring of disease progression. The business includes instruments and
reagents used to conduct sophisticated analysis of patient DNA and RNA.
Abbott is a global, broad-based health care company devoted to the
discovery, development, manufacture and marketing of pharmaceuticals and
medical products, including nutritionals, devices and diagnostics. The company
employs more than 68,000 people and markets its products in more than 130
Abbott's news releases and other information are available on the
company's Web site at www.abbott.com.
About Isis Pharmaceuticals, Inc.
Isis is exploiting its expertise in RNA to discover and develop novel
drugs for its product pipeline and for its partners. The Company has
successfully commercialized the world's first antisense drug and has 19 drugs
in development. Isis' drug development programs are focused on treating
cardiovascular and metabolic diseases. Isis' partners are developing
antisense drugs invented by Isis to treat a wide variety of diseases. Isis is
a joint owner of Regulus Therapeutics LLC, a joint venture focused on the
discovery, development and commercialization of microRNA therapeutics. As an
innovator in RNA-based drug discovery and development, Isis is the owner or
exclusive licensee of over 1,500 issued patents worldwide. Additional
information about Isis is available at www.isispharm.com.
This press release includes forward-looking statements regarding Isis
Pharmaceuticals' business, the financial position and outlook for Isis as well
as its Ibis Biosciences subsidiary and the commercial potential of Ibis'
technologies and products in development. Any statement describing Isis'
goals, expectations, financial or other projections, intentions or beliefs is
a forward-looking statement and should be considered an at-risk statement,
including those statements that are described as Isis' goals or projections.
Such statements are subject to certain risks and uncertainties, particularly
those inherent in the process of discovering, developing and commercializing
drugs that are safe and effective for use as human therapeutics, in developing
and commercializing systems to identify infectious organisms that are
effective and commercially attractive, and in the endeavor of building a
business around such products. Isis' forward-looking statements also involve
assumptions that, if they never materialize or prove correct, could cause its
results to differ materially from those expressed or implied by such
forward-looking statements. Although Isis' forward-looking statements reflect
the good faith judgment of its management, these statements are based only on
facts and factors currently known by Isis. As a result, you are cautioned not
to rely on these forward-looking statements. These and other risks concerning
Isis' programs are described in additional detail in Isis' annual report on
Form 10-K for the year ended December 31, 2007, and its most recent quarterly
report on Form 10-Q, which are on file with the SEC. Copies of these and
other documents are available from the Company.
Private Securities Litigation Reform Act of 1995 --A Caution Concerning
Some statements in this news release may be forward-looking statements for
the purposes of the Private Securities Litigation Reform Act of 1995. Abbott
cautions that these forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially from those
indicated. Economic, competitive, governmental, technological and other
factors that may affect Abbott's operations are discussed in Item 1A, "Risk
Factors," to Abbott's Annual Report on Securities and Exchange Commission Form
10-K for the year ended December 31, 2007, and in Item 1A, "Risk Factors," to
Abbott's Quarterly Reports on Securities and Exchange Commission Form 10-Q for
the quarters ended June 30, 2008, and September 30, 2008, and are incorporated
by reference. Abbott undertakes no obligation to release publicly any
revisions to forward-looking statements as a result of subsequent events or
In this press release, unless the context requires otherwise, "Isis" and
"Company" refers to Isis Pharmaceuticals and its subsidiaries and joint
Isis Pharmaceuticals is a registered trademark of Isis Pharmaceuticals,
Inc. Ibis Biosciences and Ibis T5000 are trademarks of Ibis Biosciences, Inc.
Regulus Therapeutics is a trademark of Regulus Therapeutics LLC.
SOURCE Isis Pharmaceuticals, Inc.; Abbott
/CONTACT: Don Braakman, Public Affairs, Diagnostics, +1-847-937-0080, or
+1-847-772-3263, or Tina Ventura, Director of Investor Relations,
+1-847-935-9390, both of Abbott; or Kristina Lemonidis, Associate Director,
Corporate Development, +1-760-603-2490, or Amy Blackley, Ph.D., Manager,
Corporate Communications, +1-760-603-2772, both of Isis Pharmaceuticals, Inc./
/Web Site: http://www.abbott.com
CO: Isis Pharmaceuticals, Inc.; Abbott; Ibis Biosciences, Inc.
ST: California, Illinois
IN: HEA MTC BIO
-- LA52832 --
5982 12/17/200807:00 ESThttp://www.prnewswire.com