Netherlands holding company buys Genaco

Biotech firm will retain its name, stay in Huntsville

Genaco Biomedical Products Inc., a Huntsville-based biotechnology company, has been acquired by a Netherlands holding company, Qiagen N.V.

Huntsville needed another success story in the biotech field besides Research Genetics, "and this is it," said Dennis Grimaud, Genaco's chief executive officer.

"We retain our name, and we stay in Huntsville," said Grimaud. "I think that's a real positive sign." Genaco will be a subsidiary of Qiagen, he said.

Genaco has developed testing products to rapidly detect avian flu strains, respiratory infections, hospital-acquired infections and staph infections. The company has developed 10 products in all.

"We're still planning to be in" the Hudson-Alpha Institute for Biotechnology, Grimaud said. Hudson-Alpha is building a headquarters in Cummings Research Park that is expected to open late next year.

"The acquisition of Genaco is a further milestone in the execution of our strategy of expanding our market and technology leadership in molecular diagnostics," said Peer M. Schatz, Qiagen's chief executive officer. "Genaco's portfolio of products and its growing reputation in an increasingly important market segment are a perfect fit for Qiagen."

Qiagen and Genaco will make "a very strong partnership," Grimaud said.

Qiagen, a leading provider of molecular diagnostics products, has more than 1,800 employees worldwide. Its products are sold through a sales force and global network of distributors in more than 40 countries.

That global presence "assists Genaco in penetrating the overall market," Grimaud said.

Genaco was founded in 1996 by Dr. Jian Han, now the company's chief scientist, and has 18 employees.

Under the terms of the share purchase agreement, Qiagen acquired 100 percent of the outstanding shares of Genaco for $22 million in cash and will also pay up to $18 million in milestone payments. It is also issuing 125,000 shares of restricted Qiagen stock to Han.