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Oxford, UK, and Marlborough, USA – Oxford Immunotec Global PLC (Nasdaq:OXFD), a global, high-growth diagnostics company focused on developing and commercializing proprietary tests for the management of immune-regulated conditions, today announced it has entered into a definitive agreement to acquire substantially all of the assets of Imugen, Inc., a Massachusetts-based clinical laboratory focused on developing and performing specialized testing for tick-borne diseases, for $22.2 million in an all cash transaction expected to close on July 1, 2016.
Consistent with strategic vision: Imugen’s business fits well with our strategy to focus on immune-regulated conditions. Tick-borne disease fits within our target markets as, if untreated, they can become chronic infections. In addition, like TB, they can prey on those with weakened immune systems. Similar to our current products, Imugen’s tests derive many of their proprietary insights through prosecuting the immune system.
Expands addressable market: The acquisition expands the Company into the attractive tickborne disease market, which includes Lyme disease, increasing our total addressable market by $400 to $500 million.
Leverages commercial resources: Imugen’s business has a high degree of call point overlap with our current TB business. We intend to leverage our existing sales and marketing infrastructure to increase Imugen’s revenue growth over time.
Adds laboratory capabilities: Imugen’s Massachusetts laboratory will allow us to offer our TSPOT®. TB test at a second laboratory, thereby increasing testing capacity, allowing for optimized logistics and providing risk mitigation through service redundancy. “We are very excited about the acquisition of Imugen. It is a significant step towards achieving our vision of becoming a leader in the field of immune-regulated conditions,” said Dr. Peter Wrighton-Smith, Chief Executive Officer of Oxford Immunotec. “Through this acquisition, we are expanding our total addressable market, growing and diversifying our revenue streams and leveraging our commercial infrastructure while at the same time improving our profitability profile.”
“Imugen’s extensive experience and proprietary tick-borne disease testing capabilities are very complementary to Oxford Immunotec’s portfolio of products and services,” said Victor Berardi, Chief Executive Officer of Imugen. “We are excited to combine our testing capabilities with Oxford’s Commercial and R&D resources to grow the Imugen business.”
We expect the acquisition of Imugen to contribute approximately $5.5 million in revenues in the second half of 2016, which when added to our previously communicated revenue guidance raises our expected revenues for calendar 2016 to between $79.5 and $82.5 million. We expect to have approximately $30 million of cash at the end of 2016, which will give the company cash into the second half of 2018 based on our current operating plan.
Conference Call and Webcast
The Company will host a conference call on June 24, 2016 at 8:00 a.m. Eastern Time to provide more information on this announcement. The call will be concurrently webcast. To listen to the conference call on your telephone, please dial (855) 363-5047 for United States callers and +1 (484) 365-2897 for international callers and reference confirmation code 38072518 approximately ten minutes prior to start time. To access the live webcast with presentation slides or an archived recording, visit the Investor Relations section of Oxford Immunotec’s website at www.oxfordimmunotec.com. The replay will be available on the Company’s website for approximately 60 days. The presentation slides will also be available for download in the Investor Relations section of the Company’s website on June 24, 2016 at 7:00 a.m. Eastern Time.