CARLSBAD, Calif.—Late last month Invitrogen added the latest feather to its proteomics cap with the acquisition of BioSource International for $130 million in cash. The deal augments Invitrogen's fast-growing product lines in the areas of protein and primary antibodies which has been built through the recent acquisitions of Zymed Laboratories and Caltag Laboratories. With BioSource, Invitrogen gains important offerings in kinase and cytokine assay technologies and entry to important new markets such as immunology, oncology and neurodegenerative diseases.
"BioSource brings to us very important technologies in the overall area of cytokines, signal transduction, applications capabilities that are very important that we think we could add to given our advantages of distribution and strong R&D," says Gregory T. Lucier, chairman and CEO of Invitrogen.
The acquisition of BioSource is just the latest move by Invitrogen to build a com-prehensive line of proteomics products, a strategy it laid out in early 2004. "By bringing together the products from Zymed, Caltag and BioSource, Invitrogen now has a complete offering of products that are high value applications," says Cheri Walker vice president of proteomics business for Invitrogen. "This includes everything from flow cytometry which was brought in from Caltag Laboratories, to anatomical clinical pathology from Zymed, and now ELISA luminous assays and cytokines [from BioSource].
"The company is a strong innovator and has been first in many products they have developed," Walker continues "They are a leader in cellular pathways and are number one in the signal transduction segment of the market – an area that has shown strong growth."
Further, the combined R&D operations of both companies are expected to yield other products in the coming years. In all, BioSource employs 240 people at various locations around the world, more than 40 of them in R&D.
Now, with the help of Invitrogen's marketing muscle, BioSource has greatly widened the opportunity for increased sales of it products. "It is a pleasure to be joining a team of strong performers in the marketplace," says Terrance J. Bieker, president and CEO of BioSource. "Our strategy is aligned with [Invitrogen's] goals in terms of proteomics and our focus on functional proteomics."
In addition to the fit among Invitrogen's existing proteomic products, BioSource was also on a strong growth curve, recording gross revenue growth of 15 percent in the past year and earnings growth over 80 percent. Closing on the deal should occur late this year and is expected to have no material affect on Invitrogen's 2005 earnings. The deal is expected to add 4 cents in earnings in 2006, according to Invitrogen.
Once the acquisition is completed, Invitrogen's proteomics business will account for more than $100 million in annual sales, Lucier notes, and it expected to be one of the company's growth engines in the coming years.
