Nanogen to acquire Spectral's rapid cardiac immunoassay test business for C$9 million

By E. Janene Geiss

Philadelphia, Dec. 20 - Nanogen, Inc. announced Tuesday that it will acquire Spectral Diagnostics Inc.'s rapid cardiac immunoassay test business, including the cardiac STATus, Decision Point and i-Lynx product lines, for C$9 million in cash and stock.

Nanogen said it will assume related sales, marketing and manufacturing activities. The transaction is expected to close during the first quarter of 2006 and is subject to approval by Spectral's shareholders.

The total consideration for the transaction is C$9 million, comprised of C$5.65 million in cash and C$3.35 million in Nanogen common shares.

"We are excited about acquiring the Spectral cardiac test business. This acquisition is part of our continuing strategy to acquire product lines and businesses to complement and accelerate our growth strategy to become a leading advanced diagnostics company," David Ludvigson, Nanogen's president and chief operating officer, said in the release.

"The Spectral point of care products are noted for their quality and, when combined with our Status First Congestive Heart failure test, will significantly expand our offering and market position for the rapid diagnosis of cardiac conditions," Ludvigson said.

Spectral officials said the deal will improve its financial position, allowing it to focus on commercialization of its EAA Sepsis and West Nile products.

"We will also maintain our proprietary reagent business, highlighted by the company's single chain Troponin I products" Paul Walker, Spectral's president and chief executive officer, said in the release.

"We expect this transaction to enhance Spectral shareholder value, as we execute on our strategic plans for our new products," Walker added.

Nanogen is a San Diego company that uses advanced technologies to develop improved methods and tools to predict, diagnose and treat diseases.

Spectral is a Toronto, Ont., developer of innovative technologies for comprehensive disease management.

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