Ciphergen Sets Unit Sale

The business will be sold to Bio-Rad Laboratories.
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Ciphergen's

(CIPH)

shareholders have approved the sale of a device business to research company

Bio-Rad Laboratories

(BIO) - Get Report

in a deal worth approximately $20 million.

Under the terms of the agreement, Bio-Rad will manufacture, market and sell Ciphergen's proteomics instruments to life-sciences companies.

Ciphergen will retain the exclusive rights to the diagnostic-test market and will purchase instruments from Bio-Rad for the continued development of its diagnostics business. In addition, Bio-Rad will invest $3 million in Ciphergen. The transaction is expected to close by Nov. 1.

"With the approval of the sale of the instrument business, Ciphergen completes its transition into a specialty-diagnostics company and is well-positioned to bring high-value molecular diagnostics to physicians and their patients," said Gail Page, president and CEO of Ciphergen.

Ciphergen's shares were up 2.1% to $1.13, and Bio-Rad's shares were up 12 cents, or 0.2% to $74.87.