Gen-Probe makes recommended cash offer for Tepnel Life Sciences

The directors of Gen-Probe and UK-based Tepnel Life Sciences have reached agreement on the terms of a recommended cash offer to be made by Gen-Probe for Tepnel. The offer values Tepnel at approximately £92.8m (US$132.2m; Euro 103.5m).

Gen-Probe, based in San Diego, California, is a global leader in the development, manufacture and marketing of rapid, accurate and cost-effective nucleic acid probe-based products used primarily for the clinical diagnosis of human diseases and for screening donated human blood.

Tepnel is a UK-based international life sciences products and services group with laboratories, manufacturing and operations in the US, UK, France and Belgium with more than 200 employees.

The acquisition of Tepnel will allow Gen-Probe to enter the human leukocyte antigen (HLA) and genetic testing segments. HLA testing, frequently conducted prior to transplantation and in the ongoing monitoring of transplant recipients, represents a significant product expansion area for Gen-Probe. In addition, Tepnel brings established pharmaceutical relationships and an opportunity for Gen-Probe to expand into the area of companion diagnostics.

"We believe Gen-Probe's offer recognises both our past achievements and our future potential in molecular diagnostics and pharmaceutical services," said Tepnel ceo Ben Matzilevich. "In addition, we are excited about the opportunity to accelerate our strategic plans as part of one of the most established and highly respected molecular diagnostics companies in the world."

The transaction is expected to conclude in April 2009.