EXHIBIT 99.1
QUIDEL CORPORATION TO ACQUIRE LITMUS CONCEPTS
ACQUISITION WILL PROVIDE IMMEDIATE AND LONG TERM GROWTH FOR PRODUCT PORTFOLIO
SAN DIEGO, Oct. 31 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL)
announced today that the Company has signed a definitive agreement to acquire
Litmus Concepts, Inc., (Santa Clara, CA), a privately held in vitro diagnostics
company focused on the development and manufacture of unique diagnostic products
for women's health. The merger will provide Quidel with two marketed products
and several patented, rapid diagnostic, technology platforms that are expected
to expand Quidel's position in both the professional and consumer diagnostics
markets. The technology should also allow Quidel to revamp some of its existing
product portfolio. Quidel will issue approximately 3.25 million shares of common
stock to acquire Litmus.
INNOVATIVE TECHNOLOGY PLATFORM
Litmus' proprietary, multi-layered film technology, enables production of
highly adaptable, multi-analyte, disposable tests that are the size and shape of
a credit card and produce easily-read results within minutes. This technology
provides state of the art diagnostic methods supported by a highly automated,
flexible, rapid throughput manufacturing system, which can produce a wide
variety of tests with high hourly yields. Nineteen issued patents are resident
at Litmus and nine specifically surround the technology used in the women's
health products. This intellectual property is expected to significantly enhance
Quidel's competitive position for the future. "The acquisition of Litmus
Concepts is a key strategic initiative for Quidel. We believe that the
combination of Quidel's immunoassay expertise and market presence, coupled with
this highly adaptable and enabling technology platform, will give us a unique
competitive advantage in the point of care, diagnostics market," said Andre de
Bruin, President and CEO of Quidel Corporation. "Integrating this technology
platform into Quidel's current product portfolio will enable the Company to
reduce operating costs and improve manufacturing capabilities. Perhaps even more
exciting are the broad-reaching capabilities of the technology and planned
product pipeline which will greatly expand Quidel's product offerings."
STRATEGIC POSITION IN WOMEN'S HEALTH
In addition to the multi-layered film technology platform itself, Litmus
currently has two globally marketed diagnostic products that employ this proven
technology for the clinical evaluation and detection of bacterial
vaginosis (BV). Bacterial vaginosis is a disease of emerging importance which
affects millions of women worldwide and can lead to serious health complications
such as pre-term birth, severe infections and, in some cases, an increased
susceptibility to other pathogens including HIV, according to the U.S. Centers
for Disease Control and Prevention. Litmus has additional diagnostic products in
development that will further expand the portfolio of tests available to
physicians. Since these tests are easy to perform and their results are easy to
interpret, similar tests may be developed for at-home testing.
"This acquisition strengthens our leadership position in women's healthcare
as it provides the Company with two distinct diagnostic products that are
synergistic with our current women's health product portfolio. The platform's
adaptability and other unique features also provide Quidel with out-licensing
possibilities for broader diagnostic applications in human health," commented
Mr. de Bruin.
Additionally, Paul J. Lawrence, Ph.D., Co-Founder and Chief Technology
Officer of Litmus and inventor of the Litmus platform technology, will be
appointed Chief Technology Officer of Quidel where he will be responsible for
future technology development and will help oversee product development.
"We're delighted to welcome Dr. Lawrence to Quidel as he brings world-class
diagnostic enzymology and manufacturing expertise to the Company," continued Mr.
de Bruin. "His expertise will prove invaluable to the process of converting some
of our current products to this new technology platform and in expanding its
application to new diagnostic opportunities for Quidel."
The transaction is subject to customary closing conditions and the issuance
of unregistered Quidel common stock following the proxy solicitation of Litmus
stockholders. During the interim period, which is expected to take approximately
30 days, Quidel will provide management services and working capital under a
separate agreement.
Litmus Concepts has commercialized a technologically advanced method for
producing rapid diagnostics, yielding products with valuable marketing
characteristics and new diagnostic applications. Litmus conducts all activities
from its headquarters in Santa Clara, CA.
Quidel Corporation discovers, develops, manufactures and markets
point-of-care, rapid diagnostic tests for detection of medical conditions and
illnesses. These products provide accurate, rapid cost-effective diagnostic
information for acute and chronic conditions that affect women's health
throughout the phases of their lives, including reproductive status, pregnancy
management and osteoporosis. Quidel also provides point-of-care diagnostics for
infectious diseases, including influenza A and B, strep throat, H. pylori
infection, Chlamydia and infectious mononucleosis. Quidel's products are sold to
healthcare professionals for use in physicians' offices, clinical laboratories
and pharmacies, and to consumers through organizations that provide private
label, store brand products. These tests provide diagnostic
information to enable rapid treatment and improve health outcomes, lower costs,
and increase patient satisfaction.
This press release contains forward-looking statements regarding Quidel's
future activities within the meaning of the federal securities laws. These
forward-looking statements involve material risks and uncertainties. Many
possible factors could affect the future results and performance of Quidel's
products, such that actual results and performance may differ materially. If
Quidel's products fail to perform as expected, or if there is lower consumer
demand for these products than expected, Quidel's financial condition and
operating results may be materially and adversely affected. Quidel's financial
condition and operating results may also be materially and adversely affected by
a number of other factors, including, without limitation, seasonality, adverse
changes in competitive and economic conditions, actions by the Company's
distributors, manufacturing and production delays or difficulties and adverse
actions or delays in product reviews by the FDA. Please see the discussion of
these and other factors in Quidel's annual reports on Form 10-K and subsequent
quarterly reports on Form 10-Q. For more information, please visit Quidel's web
site at http://www.quidel.com.
Contact: Charles J. Cashion, Chief Financial Officer of Quidel Corporation,
858-552-7962; or Antoinette Ongg of Noonan/Russo Communications, 212-696-4455,
ext. 242, for Quidel Corporation.
SOURCE Quidel Corporation
Web site: http://www.quidel.com