Advances Konica Minolta strategy to
establish a leadership position in precision medicine
Contributes to diagnostic solutions in
oncology and drug discovery through a combination of Konica Minolta
and Ambry Genetics technologies.
Introduces the world’s most comprehensive
genetic-diagnostic solutions to Japan and other markets
Konica Minolta, Inc. (Konica Minolta) (TOKYO: 4902) (ISIN:
JP3300600008) and Ambry Genetics Corporation (Ambry) today
announced the signing of a definitive agreement for a subsidiary of
Konica Minolta to acquire Ambry. The transaction is partially
funded by Innovation Network Corporation of Japan (INCJ). $800
million will be paid upon closure, and there will be an additional
payment of up to $200 million based on certain financial metrics
over the next two years, valuing the acquisition up to a total of
$1.0 billion.
Founded in 1999, Ambry is a privately held healthcare company in
the U.S., led by founder, President and Chairman Charles L.M.
Dunlop and CEO Dr. Aaron Elliott. Ambry has the world’s most
comprehensive suite of genetic testing solutions for inherited and
non-inherited diseases as well as for numerous clinical
specialties, including oncology, cardiology, pulmonology,
neurology, and general genetics. They are recognized as a leader in
diagnostic solutions for hereditary conditions in the United
States, by having performed more than one million genetic tests and
identified more than 45,000 mutations in at least 500 different
genes. Ambry is known as a pioneer and thought leader in genetic
testing being the first laboratory in the world to offer such tests
as hereditary cancer panels and clinical exome sequencing.
Konica Minolta views the addition of Ambry as the first
stepping-stone to create an exciting new medical platform aimed at
fulfilling the potential of precision medicine – an emerging
approach to healthcare where genetic or molecular analysis is used
to match patients with the most appropriate treatment for their
specific disease. Precision medicine aims to improve a patients’
quality of life and save the healthcare system money by eliminating
unnecessary and ineffective treatments. Konica Minolta plans to
bring Ambry’s capabilities first to Japan, and then to Europe.
“This acquisition is the first in a series of strategic
initiatives to secure a leading position for Konica Minolta in
precision medicine”, said Shoei Yamana, President and CEO of Konica
Minolta. “The future of medicine is patient-focused. Together with
Ambry, we will have the most comprehensive set of diagnostic
technologies for mapping an individual’s genetic and biochemical
makeup, as well as the capabilities to translate that knowledge
into information the medical community can use to discover,
prevent, and cost-effectively treat diseases. This will not only
serve as the future foundation for our healthcare business, but
will pave the way for a fundamental shift in the way medicine is
practiced globally.”
The acquisition of Ambry and the advancement of precision
medicine marks a strategic and important shift for Konica Minolta’s
healthcare business. Leveraging its long history of innovation in
materials science, nanofabrication, optics, and imaging, Konica
Minolta has developed a comprehensive range of technologies and
services in the healthcare field spanning digital X-ray diagnostic
imaging systems, diagnostic ultrasound systems, and ICT service
platforms for medical institutions.
Ambry’s genetic testing capabilities complement Konica Minolta’s
advanced imaging technology to create the most comprehensive range
of healthcare diagnostics for use by pharmaceutical companies,
healthcare providers, payers, and consumers. In 2015, Konica
Minolta pioneered advanced immunostaining technology –
High-Sensitivity Tissue Testing (HSTT)1 – that uses fluorescent
nanoparticles to detect and quantify the proteins that drive
disease states and offers far greater precision and accuracy than
conventional immunostaining techniques. With initial applications
in oncology, the proprietary technology can determine the exact
cellular location and amount of specific proteins that manifest in
cells, offering an early-stage, highly precise diagnosis and
insights into a patient’s disease that can inform research and a
clinicians’ treatment plan.
“We’re excited by this opportunity to combine both our
companies’ technologies to unlock new opportunities for precision
medicine,” said Charles Dunlop, President and Chairman of Ambry
Genetics. “As a part of Konica Minolta, we will have the resources,
technology, and scale to advance biomedical research and enable the
matching of more patients in more countries with specialized
medicines that target the underlying cause of their illness.”
Konica Minolta’s HSTT technology will be further enhanced by
Ambry’s genetics-based screening techniques, which enable
clinicians to analyze both tumor and normal tissue to diagnose
hereditary cancer, while also providing guidance regarding drug
eligibility and response. Ambry recently launched a combined
genetic test for both inherited and acquired mutations in DNA
mismatch repair genes to indicate appropriate treatment options for
cancer patients who may benefit from PD-1/PD-L1 immunotherapy. PD-1
and PD-L1 checkpoint inhibitors help the patient's immune system
recognize attack and destroy PD-L1-positive cancer cells that would
otherwise evade detection by the immune system.
“The combination of these bioinformatics capabilities, alongside
Konica Minolta’s HSTT technology, will create new opportunities for
drug discovery and clinical trials not currently available,” said
Kiyotaka Fujii, Senior Executive Officer, President, Global
Healthcare, Konica Minolta. “Konica Minolta will look to accelerate
innovations by drawing on the strengths of both companies. In
addition to introducing Ambry’s genetic-testing capabilities to the
Japan market, we will look to develop new bio-imaging and proteomic
services and solutions to benefit doctors, patients, and
pharmaceutical companies.”
Transaction OverviewUnder the terms of the agreement,
Konica Minolta via Konica Minolta Healthcare Americas, Inc.,
(MHUS), a wholly owned subsidiary of Konica Minolta, and INCJ, will
make an upfront, all-cash payment of $800 million to Ambry. MHUS
will invest 60% and INCJ will account for the remaining 40%. In
addition, Ambry shareholders will receive up to $200 million in
incremental consideration based on certain financial metrics over
the next two years, valuing the acquisition up to a total of $1.0
billion.
The transaction is expected to close in the third quarter of
fiscal year 2017, subject to customary regulatory approvals. Ambry
would thereafter become a consolidated subsidiary of Konica
Minolta, continuing to operate under the Ambry name and
headquartered in Aliso Viejo, California.
GCA Corporation acted as financial advisor to Konica Minolta and
Baker McKenzie acted as legal advisor for this transaction.
Intrepid Investment Bankers acted as financial advisor to Ambry and
Jones Day acted as legal advisor.
ABOUT KONICA MINOLTAKonica Minolta, Inc. (Konica Minolta)
is a global digital technology company with core strengths in
imaging and data analysis, optics, materials, and nano-fabrication.
Through innovation, we create products and digital solutions for
the betterment of business and society—today and for generations to
come. Across our Business Technologies, Healthcare, and
Industrial-facing businesses, we aspire to be an Integral Value
Provider that applies the full range of our company’s expertise to
offer comprehensive solutions to our customer’s most pressing
problems, work with our partners to ensure our solutions are
sustainable, anticipate and address tomorrow’s issues, and tailor
each solution to meet the unique and specific needs of our valued
customers. Leveraging these capabilities, Konica Minolta
contributes to productivity improvement and workflow change for our
customers, and provides leading-edge service solutions in the IoT
era.
Headquartered in Tokyo and with operations in more than 50
countries, Konica Minolta has more than 43,000 employees serving
approximately two million customers in over 150 countries. Konica
Minolta is listed on the Tokyo Stock Exchange, (TSE4902). For
further information, visit: https://www.konicaminolta.com/
About Ambry GeneticsSince 1999, Ambry’s mission has
remained focused on understanding disease so cures can come faster.
Today, Ambry remains unwavering in its commitment to being tough,
innovative, committed to quality and, most of all, focused to do
what is right for patient care. For more information on Ambry’s
full suite of genetic testing, visit http://www.ambrygen.com
About INCJInnovation Network Corporation of Japan (INCJ),
a unique public-private partnership aimed at promoting innovation
and enhancing the value of businesses in Japan, was launched in
July 2009. For more information please see:
http://www.incj.co.jp/english/
1 A portion of the research on HSTT was commissioned under a
project by the New Energy and Industrial Technology Development
Organization (NEDO), Japan.
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Konica Minolta JapanCorporate Communications Dept.Konica
Minolta,
Inc.+81-3-6250-2100press@konicaminolta.comhttps://www.konicaminolta.comorKonica
Minolta US:EdelmanNicolas
Theccant+1-212-738-6069Nicholas.Theccanat@edelman.comorAmbry
GeneticsAaron SchmidtSr Manager, CommunicationsAmbry
GeneticsDirect 949.457.4679aschmidt@ambrygen.com