Exiqon to Acquire Oncotech Inc and Enter the Market for Cancer Molecular Diagnostics in 2008
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Exiqon A/S has announced that it has signed a binding Letter of Intent to acquire Oncotech Inc. through an all share transaction. As a result of the proposed transaction, a number of the goals set up during the IPO of Exiqon that occurred earlier this year will be realized sooner than originally anticipated and a significant step towards becoming a world leader within diagnostic products based on miRNA will have been achieved.
The proposed transaction will allow Exiqon and Oncotech through a combination of their resources to become a leading supplier of molecular diagnostic tests based on proprietary miRNA biomarkers. Combining the two companies will allow Oncotech to gain access to Exiqon’s superior LNA™-detection technologies and proprietary miRNA biomarkers and will allow Exiqon to master a number of challenges in building a platform for its future molecular diagnostic business.
Consequently, the proposed transaction will increase the likelihood of success and increase the speed in which new molecular diagnostic products can be marketed by Exiqon, the company says.
The first molecular diagnostic test based on miRNA biomarkers will be launched within 12 months following closing of the proposed transaction. More products will follow in the coming years. An ambitious product development plan has been developed by the management teams of both companies.
Oncotech will serve as the vehicle to market future molecular diagnostic products developed by the combined company providing a clear path to market for the future molecular diagnostic products based on Exiqon’s proprietary LNA™- technology and miRNA biomarkers.
The proposed transaction is expected to become final in January 2008 with effect as of January 1st, 2008 and does not change Exiqon’s financial expectations for 2007. The transaction will not compromise Exiqon’s financial goal of reaching profitability by 2011 with its current cash position and break even of the tools business by 2009.
