Biotage acquires Argonaut Technologies Consumable Division
Biotage acquires the Consumable Division of the US company Argonaut Technologies Inc. Through the acquisition, Biotage strengthens its position in medicinal chemistry and gives the company a complete product portfolio of Microwave synthesis, Cleanup and Purification Systems and Consumables, which will enable faster and more efficient development of new product candidates. The acquired division reported sales of about 100 million SEK (13-14 million USD) in 2004. The sales price amounts to about 139 million SEK (19,9 MUSD).
Following synthesis, drug candidate molecules must be isolated, or "purified", from starter chemicals or by-products. Through the acquisition of Argonaut Technologies' Consumables Business, Biotage will be able to provide the greatest range of tools to purify compounds with the highest purity. Biotage will also be able to produce its own purification media to pack in its columns, rather than rely on external suppliers. These hundreds of media alternatives will give Biotage a complete portfolio of solutions.
The acquistion, for which Biotage has received a short-term bank loan, is paid in cash. The company is evaluating different financing solutions and will present a long-term solution in short. If a new share issue is carried out, the present main shareholders HealthCap, Investor Growth Capital and Catella Healthcare have committed to guarantee the new share issue amounting to the sales price in full.
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