SUNNYVALE, Calif., Nov. 6 /PRNewswire-FirstCall/ -- Cepheid today announced that Cepheid and Infectio Diagnostics, Inc. (IDI) of Quebec, Canada, have executed a series of new agreements resulting in a restructuring of their previously existing collaborative relationship. The ARIDIA joint venture no longer fulfilled the strategic objectives of either Cepheid or IDI and has been dissolved.
"This new series of agreements will enable Cepheid and IDI to continue to realize the synergy between our respective technologies while at the same time providing each of us greater flexibility in building and operating our respective businesses," said John Bishop, CEO of Cepheid.
Under the new agreements, Cepheid receives non-exclusive worldwide distribution rights to IDI assays for Group B Streptococcus (GBS), methicillin resistant staph aureus (MRSA), and vancomycin resistant enterococcus (VRE), that have been configured for use with Cepheid's Smart Cycler(R) System. IDI will retain exclusive distribution rights for these assays in Canada. The GBS assay, IDI Strep B(TM), is on the market in the United States and Canada, and IDI has filed for approval of the MRSA assay by the U.S. Food and Drug Administration (FDA) and Health Canada. Cepheid will be able to continue to purchase the distributed assay kits from IDI at an agreed transfer price.
Under the new agreements, IDI receives worldwide rights to distribute Cepheid's Smart Cycler System for use with IDI assays. IDI will be able to purchase the Smart Cycler Systems from Cepheid at an agreed transfer price.
Cepheid also receives a non-exclusive, royalty-bearing license to apply IDI proprietary genetic sequences for GBS, MRSA, and VRE in the development and commercialization of its own assays for application to its GeneXpert(R) System.
With the dissolution of the ARIDIA joint venture, intellectual property and know-how developed between Cepheid and IDI during the course of their collaboration has been specifically identified. The parties will share rights to use the identified intellectual property and know-how in their respective businesses, without rights to sublicense or assign the rights to a third party. Any intellectual property relating to Cepheid's GeneXpert System or cartridge is not included in collaboration IP, and is exclusively retained by Cepheid.
Cepheid , based in Sunnyvale, Calif., is a leading developer, manufacturer and marketer of fully integrated systems that enable genetic assessment when and where it is needed. Founded in 1996, the company is commercializing its technology and products worldwide for research, medical, and industrial applications requiring assessment of the human genome, infectious disease and biothreat agents. See http://www.cepheid.com/ for more information.
This press release contains forward-looking statements that are not purely historical regarding Cepheid's or its management's intentions, beliefs, expectations and strategies for the future, including those relating to future benefits of the new agreements with IDI. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ materially from the company's current expectations. Factors that could cause actual results to differ materially include risks and uncertainties such as those relating to: the performance and market acceptance of the Group B Strep product; whether the MRSA receives regulatory approval, and whether it is accepted by the market; whether the VRE product is submitted for and receives regulatory approval, and whether it is accepted by the market. Readers should also refer to the section entitled "Risk Factors" in Cepheid's Annual Report on Form 10-K for 2002 and "Factors that Might Affect Future Results" in its most recent quarterly reports on Form 10-Q, each filed with the Securities and Exchange Commission.
All forward-looking statements and reasons why results might differ included in this release are made as of the date of this press release, based on information currently available to Cepheid, and Cepheid assumes no obligation to update any such forward-looking statement or reasons why results might differ.
CONTACTS: John Bishop, CEO, firstname.lastname@example.org, or John Sluis, CFO, email@example.com, both of Cepheid, +1-408-541-4191; or media, Cynthia Martin, +1-312-640-6741, firstname.lastname@example.org, or investor/analyst information, Tricia Ross, +1-310-407-6540, email@example.com, both of Financial Relations Board, for Cepheid.
CONTACT: John Bishop, CEO, firstname.lastname@example.org, or John Sluis, CFO,email@example.com, both of Cepheid, +1-408-541-4191; or media, Cynthia Martin,+1-312-640-6741, firstname.lastname@example.org, or investor/analystinformation, Tricia Ross, +1-310-407-6540, email@example.com,both of Financial Relations Board, for Cepheid