Qiagen completes MBO of synthetic DNA business unit
Qiagen, the Netherlands-based provider of innovative enabling technologies and products for the separation, purification and handling of nucleic acids, has sold its synthetic DNA business to a management team. The new company, to be named Operon Biotechnologies Inc., is backed by private investors and Qiagen will retain a minority stake of 16%. Qiagen will retain all rights and activities in its siRNA business, including ownership of its proprietary TOMamidite chemistry.
As well as retaining a minority equity ownership in Operon Biotechnologies, Qiagen will also receive a consideration of approximately US$24.3m, of which approximately $17.8m is in cash and the remainder in a promissory note. In addition, the company will receive preferred access to Operon Biotechnologies' synthetic nucleic acid manufacturing capacities as well as preferred purchasing rights. Qiagen also has the exclusive right to use these highly efficient manufacturing capacities and the value of their continued improvements for contract manufacturing of siRNA products that Qiagen will continue to market.
The management team leading the buyout is headed by Patrick A. Weiss, who will be ceo of the Operon Biotechnologies. Weiss was the founder of Xeragon, which Qiagen acquired in 2002 and is an expert in nucleic acid chemistry and chemical synthe-sis operations.
'We are excited to be leading Operon Biotechnologies into its next phase of growth,' said Weiss. 'Through this spin-out, we have not only created an focused technology and market leader in nucleic acid synthesis products, but can also allow Operon Biotechnologies strategic moves and culture to address what we believe is an exciting opportunity.'
'Oligonucleotides have always been a flanking business to Qiagen and in recent years were exposed to a significantly volatile market environment and lower margins. In 2003 we were able to turn this business from a loss-contributor to a profitable unit that stands strong today,' said Peer M. Schatz, Qiagen ceo. 'With Operon Biotechnologies now in great hands and Qiagen's preferred terms for and access to Operon Biotechnologies' manufacturing capabilities with all the economies of scale of a market leader, we believe we have found a perfect solution and can now focus on Qiagen's clearly defined and exciting mission.'