Germantown, Maryland, and Hilden, Germany, January 31, 2018 – QIAGEN N.V. (NYSE: QGEN; Frankfurt Prime Standard: QIA) announced today it has entered into an agreement to acquire STAT-Dx, a privately-held company developing the next generation of multiplex diagnostics for one-step, fully integrated molecular analysis of common syndromes using a novel system based on real-time PCR technology and proven QIAGEN chemistries.
The system, to be branded as QIAstat-Dx subject to closing of the transaction that is planned for the second quarter of 2018, enables scalable Sample to Insight processing of up to 48 molecular targets simultaneously to diagnose syndromes such as serious respiratory or gastrointestinal infections, as well as for use in oncology. With cost-efficient, easy-to-use assays suitable for any clinical sample type, the system can provide qualitative as well as quantitative insights in about one hour into the precise cause of various syndromes. QIAGEN believes this proprietary system has the capabilities to help drive greater dissemination of molecular testing.
Based on the proprietary DiagCORE® technology, the system was unveiled in April 2017 at the European Congress of Clinical Microbiology (ECCMID) and received a first CE-IVD marking in January 2018. The first two tests, which are extensive respiratory and gastrointestinal (GI) panels, are to be launched in Europe in the second half of 2018, in the U.S. in 2019 following regulatory clearance, and in other markets worldwide pursuant to the respective regulatory timelines. Additional tests are in development that span infectious diseases, immune response monitoring, oncology and companion diagnostics.
The system has many key advantages:
- Powerful technology capabilities: Using powerful QIAGEN sample and assay technologies, the system can deliver true Sample to Insight processing of even the most challenging samples, opening up opportunities in a broad range of application areas not possible with currently available systems. Samples include tissue samples in pathology, liquid samples or difficult-to-handle sputum samples in infectious disease with direct onboard swab processing.
- Flexible approach to result customization: The proprietary workflow design enables laboratories to take a tailored approach to the selective analysis and reporting of tested molecular targets. The flexible approach represents a significant improvement over currently available systems that offer rigid panel designs, and therefore require co-processing of molecular targets found to be irrelevant in the patient sample, which may complicate reimbursement.
- Highly cost-efficient system: The system’s assay cartridges have significantly lower manufacturing costs compared to other systems. This more economical system should enable broader utilization – a significant benefit in the dynamically changing reimbursement landscape in the U.S. and other markets. Connectivity and seamless bi-directional integration into laboratory information systems (LIS) add further efficiencies and reduce system management costs.
- Multi-analyte capabilities: The system is the only multiplex syndromic testing system based on real-time PCR (polymerase chain reaction) technology that can process up to 48 targets and is designed with the additional capability to process immuno-assays. These features create unmatched target and application versatility as well as disease management options.
- Integration of real-time PCR technology: This system enables customers to precisely quantify biological targets, which is specifically important in oncology or transplantation patients and leads to improved treatment decisions. The use of real-time PCR also allows a vast portfolio of current real-time PCR tests to be portable onto the system.
“QIAstat-Dx represents the next generation of innovation for multiplex syndromic testing, using powerful QIAGEN technologies and a real-time PCR technology that will allow for a much broader range of applications and drive the dissemination of molecular testing. The system is designed for significantly more cost-efficient test processing as required by the current reimbursement environment. Additional application areas for this system include companion diagnostics, quantitative analysis and immunoassay tests, offering customers a new level of flexibility and accurate diagnosis designed to support better outcomes for patients and healthcare systems,” said Peer M. Schatz, Chief Executive Officer of QIAGEN N.V. “We look forward to adding QIAstat-Dx to our portfolio of Sample to Insight solutions. This is further confirmation as to how we are leveraging our advantages in sample and assay technologies, our leadership in providing solutions for infectious disease testing and the global reach of our commercial teams.”
“We are excited about accelerating the commercialization of our technology to bring fast, cost-effective syndromic testing closer to care for patients and healthcare providers. At the closing of the transaction, we will build on the achievements of our fantastic team in developing a best-in-class system and leverage QIAGEN’s resources with extensive R&D and commercial reach around the world,” said Jordi Carrera, co-founder and Chief Executive Officer of STAT-Dx.
The system utilizes cost-efficient, single-use cartridges with built-in sample processing and all reagents on board. The cartridges are loaded with high-quality QIAGEN sample and assay technologies developed under a long-standing collaboration between the companies. A lab technician only needs to load a clinical sample into a cartridge and place it in the analyzer, requiring less than one minute of hands-on time. The flexible modular system, which has bi-directional LIS (laboratory information system) interface capabilities, is designed to operate in a range of near-patient clinical settings, eliminating the delay of sending samples to a centralized laboratory. The cartridges are processed in a scalable, proprietary and fully integrated platform, which can be configured from one to eight modules, independently running cartridges with predefined assay protocols and managed via a touchscreen that offers simple step-by-step directions. QIAstat-Dx is planned to be further developed with the aim of becoming the first analyzer that combines capabilities to run the highest multiplexing molecular diagnostic assays with the ability to quantitate and also process immuno-assays.
The demand for syndromic testing with molecular diagnostics is growing rapidly. In respiratory syndromes and flu testing, QIAGEN estimates the total addressable market at about 1.5 million tests per year in the United States and 1.1 million in Europe. In GI syndromes, the number of panels currently being run is estimated at 2.6 million per year in the United States and about two million in Europe, with a relatively small but fast-growing number of those tests using molecular diagnostics.
Transaction summary
Subject to the successful completion of defined development activities by STAT-Dx, QIAGEN has agreed to acquire all shares of STAT-Dx for approximately $147 million in cash and additional payments of up to about $44 million based on the achievement of regulatory and commercial milestones. The acquisition is expected to be completed in the second quarter of 2018 and funded from existing cash reserves. For 2018, sales of about $7 million are expected from the QIAstat-Dx launch in Europe and other markets, while sales of at least $30 million are expected in 2019. Due to investments for commercialization, U.S. regulatory clearance and test development, the transaction is expected to be dilutive to full-year 2018 adjusted EPS by about $0.05 per share, but to be neutral in 2019.
About STAT-Dx
Founded in 2010 in Barcelona, Spain, and backed by a consortium of leading international healthcare investors including Kurma Partners, Idinvest Partners, Gilde Healthcare Ysios Capital, Boehringer Ingelheim Venture Fund, Caixa Capital Risc and Axis, STAT-Dx is focused on the development, manufacturing and commercialization of “Closer to Care” diagnostic solutions in areas where fast and accurate diagnostic results are crucial, such as infectious diseases and critical care. The DiagCORE® system is a versatile, easy-to-use platform that consolidates molecular and immunoassay techniques in a single device. For more information, visit www.stat-dx.com.
About QIAGEN
QIAGEN N.V., a Netherlands-based holding company, is the leading global provider of Sample to Insight solutions that enable customers to gain valuable molecular insights from samples containing the building blocks of life. Our sample technologies isolate and process DNA, RNA and proteins from blood, tissue and other materials. Assay technologies make these biomolecules visible and ready for analysis. Bioinformatics software and knowledge bases interpret data to report relevant, actionable insights. Automation solutions tie these together in seamless and cost-effective workflows. QIAGEN provides solutions to more than 500,000 customers around the world in Molecular Diagnostics (human healthcare), Applied Testing (primarily forensics), Pharma (pharma and biotech companies) and Academia (life sciences research). As of December 31, 2017, QIAGEN employed approximately 4,700 people in over 35 locations worldwide. Further information can be found at http://www.qiagen.com.
Certain statements contained in this press release may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN’s products, collaborations markets, strategy or operating results, including without limitation its expected adjusted net sales and adjusted diluted earnings results, are forward-looking, such statements are based on current expectations and assumptions that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations, regulatory processes and dependence on logistics), variability of operating results and allocations between customer classes, the commercial development of markets for our products to customers in academia, pharma, applied testing and molecular diagnostics; changing relationships with customers, suppliers and strategic partners; competition; rapid or unexpected changes in technologies; fluctuations in demand for QIAGEN’s products (including fluctuations due to general economic conditions, the level and timing of customers’ funding, budgets and other factors); our ability to obtain regulatory approval of our products; difficulties in successfully adapting QIAGEN’s products to integrated solutions and producing such products; the ability of QIAGEN to identify and develop new products and to differentiate and protect our products from competitors’ products; market acceptance of QIAGEN’s new products and the integration of acquired technologies and businesses. For further information, please refer to the discussions in reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission (SEC).