Venlo, the Netherlands, June 23, 2020 – QIAGEN N.V. (NYSE: QGEN; Frankfurt Prime Standard: QIA) announces that according to the intended business combination between Invitae (NYSE: NVTA) and ArcherDX, QIAGEN could realize a significant pre-tax capital gain from its minority investment in ArcherDX, a U.S.-based genomics analysis company involved in precision oncology.
As of June 23, 2020, QIAGEN held an equity stake on a fully diluted basis in Archer DX of approximately 8%. The current book value of QIAGEN’s shareholding in ArcherDX is $20 million. Under the terms of the combination agreement as disclosed publicly, Invitae will acquire ArcherDX for upfront consideration consisting of 30 million shares of Invitae common stock and $325 million in cash, plus up to an additional 27 million shares of Invitae common stock payable in connection with the achievement of certain milestones. The consideration is subject to customary purchase-price adjustments.
Based on the closing share price of Invitae on the New York Stock Exchange of $27.05 on June 22, 2020, and assuming a full payout of the contingent consideration and further preliminary information taken into account, QIAGEN estimates that its pre-tax capital gain could be approximately $120 million.
QIAGEN has held the investment in ArcherDX since 2015, when it acquired the enzymes solutions unit of Enzymatics, a U.S.-based supplier of enzymes used in next-generation sequencing and other genetic analysis technologies.
QIAGEN N.V.
Hulsterweg 82
5912 PL Venlo
The Netherlands
ISIN: NL0012169213
Frankfurt Stock Exchange, Regulated Market (Prime Standard)
Forward Looking Statement
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 the described transaction, QIAGEN’s products, launches, regulatory submissions, collaborations, markets, strategy, taxes or operating results, including without limitation its expected net sales, net sales of particular products (including anticipated sales of its QuantiFERON latent TB Test, its portfolio of next generation sequencing solutions and QIAstat-Dx), adjusted net sales, adjusted diluted earnings per share results, product launches (including anticipated launches of digital PCR products, a new version of its QuantiFERON-TB test, QuantiFERON-TB Access, the QIAstat-Dx panel for respiratory conditions and a CE-IVD marked panel for meningitis), placements of QIAsymphony modular PCR instruments, improvements in operating and financial leverage, currency movements against the U.S. dollar, and plans for investment in its portfolio and share repurchase commitments, 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 fluctuations of stock prices; uncertainty about achievements of milestone payments; 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; and the other factors discussed under the heading “Risk Factors” contained in Item 3 of our most recent Annual Report on Form 20-F. 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).