FREMONT, Calif. and LYNDHURST, N.J., July 22 /PRNewswire-FirstCall/ --
Ciphergen Biosystems, Inc. (Nasdaq: CIPH) and Quest Diagnostics Incorporated
(NYSE: DGX), the leading provider of diagnostic testing, information and
services in the U.S., announced the formation of a strategic alliance to
develop and commercialize novel proteomic diagnostic tests based on
Ciphergen's proprietary SELDI ProteinChip(R) technology.
The strategic alliance will focus on the commercialization of selected
assays chosen from Ciphergen's pipeline over the next three years. In
addition, for an aggregate purchase price of $15 million, Quest Diagnostics
has purchased 6.2 million shares of Ciphergen common stock, or approximately
17% of shares outstanding, and a five-year warrant to purchase an additional
2.2 million shares for $3.50 per share. Quest Diagnostics also has agreed to
loan Ciphergen up to $10 million to fund certain development activities. The
loan would be forgiven based on achieving certain milestones. Additional terms
of the agreements were not disclosed.
"We are very excited about our strategic alliance with Quest Diagnostics
to develop novel proteomic tests based on our proprietary biomarkers and
ProteinChip Systems," said William E. Rich, Ph.D., CEO of Ciphergen
Biosystems. "Together, we have the opportunity to translate biomarker
discovery into clinical diagnostic tests that will address unmet medical needs
and improve patient care."
"We believe that proteomics will play an important role in patient care,
and we look forward to pursuing our strategic alliance with Ciphergen," said
Surya N. Mohapatra, Ph.D., Chairman and Chief Executive Officer of Quest
Diagnostics. "We are building intellectual capital to create a strong pipeline
of new tests and technologies that help deliver better patient care."
About Ciphergen
Ciphergen's Diagnostics Division is dedicated to the discovery of protein
biomarkers and panels of biomarkers and their development into protein
molecular diagnostic tests that improve patient care; and to providing
collaborative R&D services through its Biomarker Discovery Centers(R) for
biomarker discovery for new diagnostic tests as well as pharmacoproteomic
services for improved drug toxicology, efficacy and theranostic assays.
Ciphergen's Biosystems Division develops, manufactures and markets a family of
ProteinChip(R) Systems and services for clinical, research, and process
proteomics applications. ProteinChip Systems enable protein discovery,
characterization, identification and assay development to provide researchers
with predictive, multi-marker assay capabilities and a better understanding of
biological function at the protein level. Additional information about
Ciphergen can be found at http://www.ciphergen.com.
Safe Harbor Statement
Note Regarding Forward-Looking Statements: For purposes of the Private
Securities Litigation Reform Act of 1995 (the "Act"), Ciphergen disclaims any
intent or obligation to update these forward-looking statements, and claims
the protection of the Safe Harbor for forward-looking statements contained in
the Act. Examples of such forward-looking statements include statements
regarding the continuation of the strategic alliance between Ciphergen and
Quest Diagnostics, the diagnostic tests that Ciphergen Diagnostics is
developing, the predictive diagnostic value of protein biomarkers, and the
expectation that protein multi-marker tests will address unmet clinical needs
and improve patient care. Actual results may differ materially from those
projected in such forward-looking statements due to various factors, including
the ability of Ciphergen to successfully discover, validate and assay
biomarkers and patterns of biomarkers that have diagnostic utility and which
then can be successfully commercialized, and the continuation of the strategic
alliance with Quest Diagnostics. Investors should consult Ciphergen's filings
with the Securities and Exchange Commission, including its Form 10-Q dated May
10, 2005, for further information regarding these and other risks of the
Company's business.
Ciphergen, ProteinChip and Biomarker Discovery Center are registered
trademarks of Ciphergen Biosystems, Inc.
About Quest Diagnostics
Quest Diagnostics is the leading provider of diagnostic testing,
information and services that patients and doctors need to make better
healthcare decisions. The company offers the broadest access to diagnostic
testing services through its national network of laboratories and patient
service centers, and provides interpretive consultation through its extensive
medical and scientific staff. Quest Diagnostics is a pioneer in developing
innovative new diagnostic tests and advanced healthcare information technology
solutions that help improve patient care. Additional company information is
available at: http://www.questdiagnostics.com.
The statements in this press release which are not historical facts or
information may be forward-looking statements. These forward-looking
statements involve risks and uncertainties that could cause actual results and
outcomes to be materially different. Certain of these risks and uncertainties
may include, but are not limited to, competitive environment, changes in
government regulations, changing relationships with customers, payers,
suppliers and strategic partners and other factors described in the Quest
Diagnostics Incorporated 2004 Form 10-K and subsequent filings.
SOURCE Quest Diagnostics Incorporated; Ciphergen Biosystems, Inc.
CONTACT:
Investors - Laure Park, +1-201-393-5030
Media - Gary Samuels, +1-201-393-5700
Both for Quest Diagnostics Incorporated;
or Sue Carruthers, Investor Relations,
of Ciphergen Biosystems, +1-510-505-2233
or scarruthers@ciphergen.com
Web site: http://www.questdiagnostics.com
http://www.ciphergen.com