Qiagen has entered into an agreement with the Institute for Product Quality (ifp), pursuant to which Qiagen has acquired all rights to 70 molecular food safety tests developed by the Berlin-based specialized laboratory center for food analysis. The transaction further strengthens Qiagen's applied testing business segment, which also encompasses molecular testing systems for forensic applications, veterinary medicine and biodefense. No financial details were disclosed.

The tests acquired from ifp are based on real-time PCR technology and cover a broad range of molecular targets including genetic, bacterial, viral, and other contaminants of foodstuffs. The tests can be fully automated using Qiagen's own instruments such as the QIAsymphony and the Rotor-Gene Q. The transaction enables Qiagen to offer complete solutions for all major applications in the food safety testing segment, covering entire workflows from the processing of primary samples to the final testing result.

Applied testing currently accounts for 7% of the company's net sales, yet it is one of the most dynamic market segments for Qiagen, with a revenue growth of 28% at constant exchange rates in the past quarter alone. Currently, Qiagen's sales in applied testing predominantly go to customers in forensics, veterinary medicine and biodefense. Food safety testing is a steadily growing segment with an overall market volume of more than US$ 2 billion. The market breaks down into four application groups: detection of pathogens, quality controls (such as testing for components subjected to illicit genetic modification), detection of allergens, and identification of animal species. The increasing demand for food safety testing is being driven by evolving consumer awareness, more stringent legal requirements, and the growing needs of food manufacturers that find themselves confronted with ever more complex sample base materials, as well as new pathogens that are increasingly difficult to detect.

The share of PCR-based methods in the food safety area is approx. 15-20% of the overall market. Prior to adding a commercial test menu, QIAGEN addressed this segment with technologies for sample processing and reagents required for the development of customized homebrew tests. Molecular food safety testing using PCR technology is presently still more widespread in the United States than in Europe and Asia; in individual segments, it is meanwhile regarded as the gold standard. An example for its growing importance is the cooperation between Qiagen and the Chinese Academy of Sciences. The program started in late 2008 and is aimed at developing molecular detection methods for pathogens in foodstuffs for the Chinese and international markets. Experts believe that such tests can set new standards in safety and protection of consumers.

ifp will continue producing all existing and future tests as an independent entity in Berlin, Germany. The first test kits are expected to be available through Qiagen in the 4th quarter, 2010. Qiagen therefore expects a negative contribution by the transaction to the adjusted earnings per share for 2010 of approximately $0.01. The company is assuming positive profit contributions for the subsequent years. Until 2012, the company plans to expand the portfolio to the full number of 70 tests.