▪ Progenika specializes in the design and manufacture of in vitro genome-based diagnostic tests, prognosis of diseases and prediction of responses to pharmacological treatment. It is also a leader in the development of DNA-based prognosis and diagnostic technologies.
▪ The total value of the operation is 37 million euros. Payment has been a combination of cash (50%) and non-voting (Class B) Grifols shares
Grifols (MCE:GRF, MCE:GRF.P and NASDAQ:GRFS), the world’s third largest plasma product manufacturer and a pioneer in the research and development of therapeutic alternatives designed to contribute to both scientific and social development, has acquired 60% of the equity of Spanish biotechnology firm Progenika Biopharma, for 37 million euros. The operation was performed through a combination of cash for 50% of the purchase price, with the remaining 50% being paid in the form of non-voting (Class B) Grifols shares.
Progenika specializes in the development of technology for personalized medicine, focusing on the design and manufacture of in vitro genome-based diagnostic tests, disease prognosis and prediction of responses to pharmacological treatment. It has also developed its own technology for the production of DNA chips for diagnosis and prognosis, and it is an international leader in this field. In particular, Progenika has pioneered the development of molecular biology tests for the performance of transfusional compatibility studies.
With this acquisition, Grifols strengthens the viability of existing Progenika projects, and reinforces its commitment to research and development within its Diagnostic division, by incorporating cutting-edge technology into its immunohematology product portfolio. Since 2010, Grifols has held the global distribution rights (excluding Mexico) for Progenika’s blood genotyping test, BLOODchip®, facilitating the availability of donor–recipient compatible blood units, and increasing transfusional safety.
Progenika currently has a reference laboratory in Boston (Massachusetts, United States) specializing in blood genotyping using DNA techniques.
Grifols and the sellers have granted each other purchase and sale option rights over the shares representing the remaining company’s equity, with a 3-year period for the exercise of these options. The price of the shares under the sale and purchase option will be the same as the price paid for the shares in the initial deal, increased by a 5% simple interest annual rate.
Finally, with the aim of preserving the identity of Progenika as a key element of the economic and business structure of the Basque Country, Grifols and Progenika have agreed that the investment vehicle EKARPEN SPE, S.A., owned by the Basque Government, Kutxabank, Caja Laboral –Euskadiko Kutxa, Lagun Aro and the Provincial Governments of the Basque Country, will continue to support Progenika and its new controlling shareholder in Progenika’s new phase as a part of Grifols. Ekarpen will perform this role as a member of the Board of Directors of Progenika.
BBVA and law firm Osborne Clarke were advisors to the operation.