3M, Gen-Probe to Discontinue Molecular Food Testing Col...( - Companies to Focus Resources on P...),Health

- Companies to Focus Resources on Partnership to Develop Rapid Molecular

Tests for Healthcare-Associated Infections -

SAN DIEGO, Nov. 8 /PRNewswire-FirstCall/ -- Gen-Probe (Nasdaq: GPRO) announced today that 3M has informed the Company it no longer intends to fund the companies' collaboration to develop rapid molecular assays for the food testing industry. The companies expect to formally terminate the collaboration in the coming days.

"Gen-Probe continues to believe that rapid molecular tests have the potential -- over time -- to increase the safety of the world's food supply," said Hank Nordhoff, Gen-Probe's chairman, president and chief executive officer. "In fact, the early technological successes we have achieved reinforce this belief. Nonetheless, our collaboration relies on 3M to assess the commercial readiness of the food testing market and to provide funding for our development efforts. Since 3M has decided not to continue funding our food testing collaboration, we plan to redeploy these resources to other high-value projects, including our separate partnership with 3M to develop rapid molecular tests for healthcare-associated infections."

Despite the expected termination of the food agreement, Gen-Probe anticipates recording milestone revenue of $2 million in the fourth quarter of 2007 associated with achieving technological feasibility for potential food testing assays. This revenue potential was contemplated in the financial guidance the Company provided on October 30. In 2008, the Company expects collaborative research revenues to be approximately $2 million less than previously anticipated due to the absence of development reimbursement from 3M related to the food testi
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