Invitrogen to Acquire Applied Biosystems
The consolidation trend in the US life sciences industry continues. Carlsbad, CA-based Invitrogen, a provider of cells, molecular and biochemical probes and reagents used in life sciences research,announced on Thursday that it will acquire (merge) with automated DNA sequencer manufacturer Applied Biosystems (ABS). Invitrogen will pay $6.7 billion in cash and stock to buy ABS which is an independent unit of Applera Corporation.
As most of you know, ABS supplied hundreds of automated DNA sequencing machines ($300,000 per machine) that were used to sequence the human genome. The advent of automated DNA sequencers in the mid to late 1990s helped (along with Craig Venter) to speed up efforts to complete the Human Genome project which officially began in 1990. The first draft of the human genome was published in 2001. Unfortunately for ABS, it was unable to refocus and adjust to changing business conditions after the government-sponsored human genome project ended in the early 2000s. Attempts to reinvent the company included moving into commercial businesses like selling equipment to test food for pathogens or DNA from crime scenes.
The deal, if approved by regulators, would create a giant supplier of machines and materials used by academic and pharmaceutical industry research laboratories, with about $3.5 billion in annual sales. Although the deal makes sense from a business perspective, it is likely that there will be a “reallocation of corporate resources” once the merger is approved by European and US regulators.
Until next time….
Good Luck and Good Job Hunting (try Carlsbad, it is a great place)!!!!!!!!
