Oxford and Cambridge, UK – 4 March 2014 – Oxford Gene Technology (OGT), a provider of innovative genetics research solutions, today announced the acquisition of Cambridge-based Cytocell Limited (Cytocell), a leading provider of DNA technology for the detection of gene rearrangements related to inherited genetic disease and cancer.
Key benefits of the acquisition are summarised below:
• Expansion of OGT’s genomic medicine offering. Cytocell’s portfolio of Fluorescence In Situ Hybridisation (FISH) probes complements OGT’s CytoSure™ cytogenetics array and next generation sequencing products.
• Entry into the large and growing market for FISH products. The market for FISH products is currently estimated to be worth $295m, growing at 19% per annum.*
• Enlargement of the product offering to North American customers. OGT has a dedicated North American cytogenetics sales team already in place. This team will work with Cytocell’s current distributor, Rainbow Scientific Inc., to provide an enhanced service and promotional capability.
• Strengthening of OGT’s distributor network. Cytocell currently develops and supplies its range of over 300 products to more than 60 countries through a network of distributors, apart from in the UK and Germany where it sells directly to the end user.
• Development of new products. Cytocell’s proprietary collection of 34,000 Bacterial Artificial Chromosome (BAC) clones provides a unique source of potential new products.
• Financially beneficial to the enlarged Group. Cytocell is a profitable company with sales of £4.5m and growing at 20% in the last financial year. The deal will be immediately accretive upon acquisition.
• Added experience to the management team. Cytocell’s Managing Director Dr Martin Lawrie will join OGT’s executive committee.
The acquisition was funded through cash augmented with a debt facility provided by Silicon Valley Bank, highlighting the Bank’s commitment to the life science market in the UK. No financial details are being disclosed.
Dr Mike Evans, CEO of OGT said, “The acquisition of Cytocell underscores our commitment to becoming a global leader in genomic medicine. Cytocell brings to the OGT Group innovative DNA technology, an excellent team and a strong brand with a reputation for high-quality FISH products. This is a great opportunity to add to our portfolio of class-leading technologies and position ourselves for growth across new geographical markets and customer application areas.”
Dr Martin Lawrie, Managing Director of Cytocell said, “This is an excellent strategic fit for both Cytocell and OGT. The aim is to continue to develop and produce our world-renowned FISH-based diagnostic products from our facility in Cambridge and take advantage of OGT’s established sales and marketing infrastructure in the US and Europe as well as its innovative science to expand the markets for these products. We very much look forward to being part of the OGT Group.”
Nooman Haque, Director of Life Science at Silicon Valley Bank’s UK Branch added, “The acquisition of Cytocell will further propel OGT’s business in life science products. I’m delighted that Silicon Valley Bank supported the management team in completing the transaction”.
Notes for Editors
About Oxford Gene Technology
Oxford Gene Technology (OGT) provides world-class genetics research solutions to leading clinical and academic research institutions. Founded by Professor Sir Edwin Southern, OGT has helped pioneer the molecular medicine revolution by enabling smarter decision making in human healthcare. With customers in over 30 countries worldwide and ambitious expansion plans, OGT has a strong reputation and increasing share in the large and growing genomic medicine market. The Company’s CytoSure™ and Genefficiency™ range of microarray and next generation sequencing products and services deliver high-quality, high-throughput genetic analysis, enabling accurate identification of the causative variation underlying genetic disease.
For more information on the Company, please visit our website at www.ogt.com
CytoSure™ and Genefficiency™ NGS browser/report: For Research Use Only; Not for Use in Diagnostic Procedures.
About Cytocell Limited
Cytocell is a leading European developer and manufacturer of FISH probes for use in both routine cytogenetics and in the analysis and classification of cancers. The Company's products are well established in cytogenetics as the Company is currently celebrating its 23rd year of supplying them to this market. More recently, the Company has focused on developing products for oncology and now has a catalogue of some 350 products for cytogenetics, haematology and solid tumour analysis as well as developing custom FISH probes for customers with specific interests under the myProbes® brand. Cytocell's products are available through a well-established distributor network, covering more than 60 countries worldwide. Cytocell's FISH probe service is currently proving to be invaluable to cancer researchers and clinicians worldwide.
About Silicon Valley Bank
Silicon Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity and premium wine businesses. SVB Financial Group provides industry knowledge and connections, financing, treasury management, corporate investment and international banking services to its clients worldwide through 28 U.S. offices and six international operations. (Nasdaq: SIVB) www.svb.com/uk
Silicon Valley Bank is authorised and regulated by the California Department of Financial Institutions and the United States Federal Reserve Bank; authorised by the Prudential Regulation Authority with number 577295; and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.
The Genomics Market
The total genomics market has recently been forecast to reach $19 billion by 2018*, with Illumina®, the leading company in this market currently valued $18 billion. Current estimates put the Cytogenetics market within which OGT operates at $1.5 billion by 2018, of which microarray accounts for $962m and FISH $590m**
* MarketsandMarkets "Genomics Market by Products - [Instruments (NGS platform, Microarray, RT-PCR), Consumables (Genechips, Reagents for DNA Extraction & Purification, Sequencing)], Services (Sequencing & Microarray Services, and Software) - Global Forecast to 2018"
** Transparency Market Research "Molecular Cytogenetics Market (Technologies: FISH and aCGH; Applications: Genetic Disorders, Cancer and Personalized Medicine) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019.
Issued for and on behalf of Oxford Gene Technology.
To contact the Oxford Gene Technology team at Instinctif Partners, email OGT@instinctif.com
Melanie Toyne-SewellManaging Partner