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Quicker than an NGS minute
HILDEN, Germany—Ingenuity Systems, a privately held U.S. company based in Redwood City, Calif., "has created the market-leading, expertly curated knowledge system of biomedical information and analysis solutions for the exploration, interpretation and analysis of complex biological systems," claims the press release announcing the company's recent acquisition by QIAGEN NV.
QIAGEN acquired Ingenuity for $105 million in cash (subject to customary purchase price adjustments) from existing cash reserves. In 2013, QIAGEN expects to report adjusted net sales (non-GAAP basis) of approximately $15 million from Ingenuity, excluding certain fair-value adjustments. The transaction is expected to be dilutive to full-year 2013 adjusted diluted EPS by approximately 3 cents per share and to 2014 adjusted diluted EPS by approximately 2 cents per share, and become accretive in 2015.
QIAGEN spokesman Dr. Thomas Theuringer says, "Ingenuity's solutions are used by thousands of researchers and clinicians at hundreds of leading pharmaceutical, biotechnology, academic, diagnostic and clinical institutions worldwide. The top 40 pharmaceutical companies have adopted Ingenuity's technology. We were looking for an addition that would help us expand our bioinformatics analysis and interpretation capabilities and one that would integrate well into our ecosystem of molecular testing solutions (which includes reagents, automated platforms, content and interpretation solutions for NGS, PCR and pyrosequencing). Ingenuity was not only the market leader, but also the right fit, since the two companies share similar cultures and visions."
The foundation of Ingenuity's product portfolio is the Ingenuity Knowledge Base, a 14-year effort to accurately and manually curate, model and computationally structure the vast amount of biomedical literature, including genomic variations implicated in human disease and thousands of disease models. The Ingenuity Knowledge Base and software applications enable users to accurately interpret the meaning of increasingly large amounts of biological data to better guide scientific experiments and medical treatment decisions.
"The interpretation of biological information is becoming a cornerstone of QIAGEN's ecosystem of Sample & Assay Technologies for molecular testing—both in life-science research and in diagnostics. We are establishing a leading role in this field, and intend to further expand the value proposition and scope of our offering," says Peer M. Schatz, CEO of QIAGEN. "Ingenuity has created unparalleled leadership with its Knowledge Base and interpretation solutions to unlock the value of complex genomic and other biological information. Combining the highest-quality knowledge content with powerful search capabilities and easy-to-use interfaces, the Ingenuity suite provides customers with scientifically and clinically relevant insights into diseases. We are looking forward to expanding the seamless integration of leading biomedical information solutions into our full range of molecular testing solutions, thereby providing our customers a unique experience from sample to interpreted result and recommendations for next steps."
Integration of Ingenuity's solutions into a powerful, full-range ecosystem of QIAGEN's molecular testing solutions, such as PCR and next-generation sequencing, promises to offer significant value to QIAGEN customers and shareholders, Schatz adds.
"Today, we can sequence an entire human genome in just a couple of days for less than a few thousand dollars, but the data analysis can take from months to years. The Ingenuity suite of products enables this rapid and accurate interpretation in a matter of minutes, and this is fundamentally impacting scientific research and the ability to diagnose and manage patient care," notes Jake Leschly, president and CEO of Ingenuity Systems.
Citing examples of typical Knowledge Base NGS processing speeds, Theuringer says, "for IPA, a reasonably sized data set (1,000 genes) takes on the order of five minutes to complete the analysis. For Variant Analysis, 76 percent of researchers report saving at least one day, with 32 percent stating they save more than three days. In general, an exome analysis of more than 50 samples takes approximately five minutes. For whole-genome samples, smaller data sets (~ five samples) take a few minutes, and large data sets of 20 or more samples may take up to an hour to complete the analysis."