December 17, 2008 / 1:21 PM / 10 years ago

UPDATE 1-Abbott Labs to buy Isis unit in $215 mln deal

Dec 17 (Reuters) - Drugmaker Abbott Laboratories (ABT.N) will buy smaller firm Isis Pharmaceuticals Inc’s ISIS.O unit, Ibis Biosciences Inc, in a deal worth $215 million, the companies said.

Abbott, which operates a medical diagnostic segment, will pay $175 million to buy Ibis, which makes Ibis T500 — a research device made to identify infectious agents. Abbott had invested $40 million in the firm earlier this year.

Under the deal, Isis will also receive earn out payments from Abbott tied to post-closing sales of Ibis systems, including instruments and assay kits.

The acquisition is expected to close in January.

In August, Abbott had said it would cut 1000 jobs in its diagnostics business over the next four years as a part of a plan to streamline operations and cut costs in the segment.

Abbott’s diagnostics segment contributed about 12 percent of the company’s total sales in the latest quarter.

Abbott shares closed at $53.16 Tuesday on the New York Stock Exchange, while shares of Isis closed at $12.09 on Nasdaq. (Reporting by Vidya L Nathan in Bangalore; Editing by Pratish Narayanan)

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