Gen-Probe will receive royalties on any potential Roka product sales, and retain rights to use the CUDA system for clinical applications. In addition, Gen-Probe will provide contract manufacturing and certain other services to Roka on a transitional basis.
The spin-off is expected to have no material effect on Gen-Probe's 2009 earnings, as reductions in operating expenses will be offset by lower collaborative research and product revenues.
Gen-Probe's industrial testing collaborators, Millipore and GE Water (a division of GE Energy, a business unit of General Electric), have agreed to the transfer of their respective collaborations with Gen-Probe to Roka. Gen-Probe's collaboration with Millipore is focused on developing microbial detection assays to ensure the purity of biopharmaceutical production processes, while the Company is working with GE to develop rapid molecular tests to detect microbial contamination in industrial water.
Roka's CEO is Paul G. Thomas, an experienced healthcare executive who recently was chairman, president and CEO of LifeCell Corporation, a regenerative medicine company, before it was sold to Kinetic Concepts, Inc., for $1.8 billion in 2008. During his tenure at LifeCell, annual product revenues increased from $7.2 million in 1998, to $190 million in 2007.
"I am excited to have the opportunity to lead a talented group of scientists and engineers who are striving to revolutionize industrial testing markets with high-performance molecular assays and systems," Mr. Thomas said. "We will pursue our shared vision based on a robust technology platform, two top-notch commercial partners, and strong financial backing."
SOURCE Gen-Probe Incorporated
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