Nanogen and the French Diagnostic Company Elitech Merge

The Elitech Group (Puteaux, France), a private French diagnostic company, announced an agreement to merge with the US company Nanogen, Inc. (San Diego, CA, USA), a developer of molecular and rapid in-vitro diagnostic products. The name of the combined company has not yet been announced.

The combination of the two companies will create a global provider of products to the molecular, point-of-care, clinical chemistry, and microbiology diagnostic markets with expected first year revenues greater than US$150 million.

The transaction combines the strong revenue and profit base stemming from the Elitech Group's global manufacturing, sales, and distribution of in vitro diagnostic (IVD) products for the clinical chemistry and microbiology markets, with Nanogen's technology leadership in molecular and point-of-care diagnostics. The combined business is currently growing at more than 20% annually, and the combined company will benefit from opportunities for even larger revenue growth, especially in molecular biology, rapid tests, clinical chemistry, and microbiology.

Pierre Debiais will lead the new company as its CEO. "This is a true example of synergy between two companies in the in vitro diagnostics industry,” he commented. "We are delighted to be able to combine Nanogen's technology strength with our market reach in the international marketplace and collectively deliver the critical mass required to address the US diagnostic market.”

The share exchange agreement is subject to approval by Nanogen's stockholders as well as customary closing conditions and regulatory approvals. The transaction is expected to close by the end first quarter of 2009.

The Elitech Group is a high growth, profitable IVD company with global sales and distribution capabilities in more than 100 countries. The company is the largest independent distributor of in vitro diagnostic products in France. Elitech offers clinical chemistry, microbiology, immunology, and electrophoresis products.

Nanogen provides diagnostic products to clinicians, physicians, and researchers worldwide, making it easier to predict, diagnose, and treat disease. The company's products include molecular diagnostic kits, reagents, and kits for rapid, point-of-care diagnostic tests.

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