Biotage broadens its acquisition of American Argonaut Technologies’ reagents business to include all of Argonaut’s business

On February 22 2005 Biotage announced its intention to acquire the reagents business of the American company Argonaut Technologies Inc. Through this acquisition, Biotage strengthens its product offering in medicinal chemistry and gets a complete product portfolio of microwave synthesis, cleanup and purification systems and consumables, which will enable faster and more efficient development of new drug candidates. Today Biotage announces that the agreement is broadened to include also the process instrument business, so that all Argonaut’s business is acquired. The sales price amounts to 145 MSEK (21.2 MUSD). Last year Argonaut reported reagents sales of about 100 MSEK. The process instrument sales amounted to about 40 MSEK, 25 million of which emanated from products which Biotage intends to continue. Biotage will thus increase its sales by approx. 125 MSEK.

“The acquisition substantially increases our offering in the medicinal chemistry market,” said Jeff Bork, CEO of Biotage. “With a complete product range, we will be able to offer our customers substantial cost savings. We estimate that the acquisition will have a positive effect on our results already this year. The original deal did not include the process instrument business. However, a continued analysis has shown that further positive income effects can be achieved through the acquisition of the whole Argonaut business. There is a competing bid, but this only concerns the reagents business. The Board of Directors of Argonaut Technologies has decided to accept Biotage’s bid.” The acquisition, for which Biotage has received a short-term bank loan, is paid in cash. The company is evaluating different financing solutions and will present a long-term solution in short. If a new share issue is carried out, the present main shareholders HealthCap, Investor Growth Capital and Catella Healthcare have committed to guarantee the new share issue amounting to the sales price in full. The acquisition is dependent on the final approval of a general meeting of the shareholders in Argonaut Technologies Inc.