Asterand completes BioSeek acquisition marking first step in ‘buy-and-build’ strategy

Specialist supplier to the medical research sector, Asterand (LSE: ATD) has completed its acquisition of BioSeek Inc. The takeover was finalised following the approval by Asterand's shareholders at today’s EGM. Asterand announced its plan to buy the privately-held BioSeek for up to US$14 million in cash and shares, back in November 2009. The newly created BioSeek LLC entity is now a wholly-owned subsidiary of Asterand.   

"It is exactly three months since we first announced this deal and we can't wait to offer a new, broader line of products and services to our customers based on the BioSeek technology, which is so complimentary to Asterand”,  Asterand Chief Executive Martyn Coombs commented. “This acquisition is about growth and supplying real value-added services to our drug discovery clients. The BioSeek and Asterand teams look forward to working closely together to expand and grow the combined business".

The acquisition is Asterand's first step in its "buy and build" strategy, which intends to consolidate leadership in the global human tissue and human tissue based services market. The company believes that BioSeek is highly complementary to Asterand's business in terms of both products and services offered.

Asterand signed an agreement to buy BioSeek for an initial US$1 million in shares, and up to US$13 million in 2011, subject to the level of sales growth achieved by the twelve months ended 31 December 2010.  The first US$3 million payment will be made in Asterand shares, and any additional payment will be in cash or shares, at Asterand's discretion.

BioSeek has developed proprietary human cell-based, high throughput assay systems (BioMAP). The systems are designed to replicate the intricate cell and pathway interactions that are present in inflammatory, autoimmune and cardiovascular diseases.

BioMAP predicts clinical activities of a potential drug candidate through comparison of assay results to a proprietary database of data profiles for known compounds. According to Asterand, the BioMAP platform provides pharmaceutical companies with actionable data to guide their lead selection and optimization programmes.

Asterand has submitted an application for the 2.69m new shares, issued as part of the initial consideration, to be admitted to the main market of the London Stock Exchange. As such the new shares are expected to commence trading on 23rd February 2010.

Previously, London-based stockbroker Daniel Stewart, which has a 'buy' recommendation on Asterand and 24 pence share price target, estimated that BioSeek will generate US$4m in sales in 2010. The broker described BioSeek as a solid asset at a winning price.  http://www.proactiveinvestors.co.uk/companies/news/13485/asterand-completes-bioseek-acquisition-marking-first-step-in-buy-and-build-strategy-13485.html