Qiagen buys Nextal tools for €8 millon
agreement to acquire Nextal Biotechnology, a provider of sample
preparation tools which make protein crystallisation more
accessible. The deal also signals Qiagen's intention towards
standardisation of complex preanalytical processes, replacing
homebrew methods.
Protein crystallography is a process used to determine the three-dimensional structure of proteins. By elucidating the structure of proteins, scientists can discover new drugs that more effectively target disease. Prior to crystallographic analysis, proteins require complex sample preparation procedures.
"Through this acquisition we can extend our sample preparation leadership into the rapidly growing area of sample preparation for biological macromolecule crystallography," said Peer Schatz, Qiagen's chief executive officer.
Qiagen now becomes a larger provider of preanalytical solutions for structure determination, structure based drug design and structural genomics. This sector of the market is experiencing growth as it undergoes increases in innovation and increased utility of its tools.
Pharmaceutical companies especially, use these techniques throughout the drug discovery and development process. The growth in this category is substantial with a total compound annual growth rate (CAGR) worldwide at 32 per cent over the next five years and estimated revenues for the US at 70 per cent with Europe at 20 per cent and Japan at 5 per cent.
Crystallography allows scientists to determine the three-dimensional molecular structures of proteins, large biomolecules, and viruses. With an improved understanding of the molecular structures and interactions of proteins, drug designers can develop new treatments that target specific human, animal, and plant diseases.
Under the terms of the agreement, Qiagen will pay approximately $9.7 million (€8 million) in cash in exchange for all of the outstanding capital stock of Canadian biotechnology company, Nextal. An additional consideration of approximately $4.5 million is subject to certain milestones.
Qiagen expects to incur charges relating to the acquisition of less than $1 million in its financial results for the second quarter of 2005.
Following the acquisition of Nextal, Qiagen said that it would be able to provide standardised, easy to use, protein products for standardised cloning, expression, purification and crystallisation that merges Qigen's QIAexpress, EasyXpress with Nextal's crystallography solutions on an automated platform.
