shares jumped after the medical-device company said it would be acquired by
The cancer detection and diagnostics company's stock rose 9.8% to $9.05 in premarket trading Friday.
Becton already owns 6.5% of TriPath's stock. The company will pay $9.25 a share, or roughly $350 million, for the rest of TriPath by the end of the fiscal first quarter of 2007, pending antitrust clearance, shareholder approval and other customary conditions.
"Expanding BD's presence in cancer diagnostics is a key element of our strategy to drive revenue growth through innovation," said Becton Dickinson Chairman, President and CEO Edward J. Ludwig in a prepared statement. "We believe that this acquisition positions BD to have significant impact in the marketplace and to advance treatments through more accurate and timely diagnosis, in line with our purpose of helping all people live healthy lives."
Becton says the acquisition will be minimally dilutive to its fiscal 2007 earnings, excluding a charge for in-process research and development. The company expects to provide guidance for the year during its fourth-quarter earnings conference call in early November.
The companies have collaborated to identify biomarkers for cancer diagnostics since 2001. Researchers already use Becton's technologies to detect certain blood cancers. The acquisition of TriPath would add to its portfolio cervical cancer screening technology and molecular screening tools for breast, cervical, ovarian and prostate cancers, which are currently in development.
Becton's shares closed 42 cents lower to $68.18 Thursday.