Invitrogen and AB postpone merger

The sharp downturn in markets over recent weeks is delaying a final shareholder vote on the linkurl:merger;http://www.the-scientist.com/blog/display/54747/ of biotech companies linkurl:Invitrogen;http://www.the-scientist.com/article/display/18238/ and linkurl:Applied Biosystems;http://www.the-scientist.com/article/display/15680/ (ABI). The delay "is a direct consequence of the dramatic drop in share prices across the board since June," Peter Dworkin, vice president of investor relations and cor

Written byBob Grant
| 2 min read

Register for free to listen to this article
Listen with Speechify
0:00
2:00
Share
The sharp downturn in markets over recent weeks is delaying a final shareholder vote on the linkurl:merger;http://www.the-scientist.com/blog/display/54747/ of biotech companies linkurl:Invitrogen;http://www.the-scientist.com/article/display/18238/ and linkurl:Applied Biosystems;http://www.the-scientist.com/article/display/15680/ (ABI). The delay "is a direct consequence of the dramatic drop in share prices across the board since June," Peter Dworkin, vice president of investor relations and corporate communication at Applied Biosystems, told __The Scientist__. The two companies were scheduled to meet tomorrow (October 16) so shareholders could vote to finalize the merger. The deal was worth $6.7 billion in an estimated 45%-55% cash/stock split when it was announced on June 12, but is now valued at closer to $5.5 billion given current share prices, according to Invitrogen spokesperson Farnaz Khadem. The meetings have been postponed to allow shareholders time to consider a change to the terms that would nullify a clause stating that the merger would be considered a tax-free reorganization, Dworkin said. According to the original agreement between the companies, ABI shareholders would pay tax only on the cash portion of the deal. But because the value of Invitrogen shares has declined markedly in recent months (plunging from $38.73 on June 12 to just over $29 in Wednesday morning trade on the Nasdaq), explained Dworkin, the new agreement will make both cash and stock portions taxable for US investors. Invitrogen and Applied Biosystems will now hold shareholder meetings on Oct. 28, according to a linkurl:statement;http://press.appliedbiosystems.com/corpcomm/applerapress.nsf/ABIDisplayPress/AF11CAA98005FD30882574E30004713C?OpenDocument&type=abi issued by the companies, and the deal is expected to be completed by the end of November, pending shareholder approval and a European Union anti-trust review. Dworkin said that even with this change to the proposed deal, he expects ABI shareholders to continue to support the merger. "At the margin, this is probably a little less favorable to Applied Biosystems shareholders, but we don't expect this to change our shareholders level of support for the deal." Dworkin said that shareholders have been voting over the last few weeks, and that they've been supporting the deal overwhelmingly. "Both companies feel the logic, the strategic rational, is as strong as it ever was," he said. "Both boards continue to support the deal." Dworkin also said that the combined company - to be called Applied Biosystems after closure of the deal - will still fulfill its linkurl:goal;http://www.the-scientist.com/blog/display/54762/ of providing world-class biotechnology tools to the scientific community. "There's no change to the plans to serve our global customer base," he said.
Interested in reading more?

Become a Member of

The Scientist Logo
Receive full access to more than 35 years of archives, as well as TS Digest, digital editions of The Scientist, feature stories, and much more!
Already a member? Login Here
Add The Scientist as a preferred source on Google

Add The Scientist as a preferred Google source to see more of our trusted coverage.

Meet the Author

  • From 2017 to 2022, Bob Grant was Editor in Chief of The Scientist, where he started in 2007 as a Staff Writer. Before joining the team, he worked as a reporter at Audubon and earned a master’s degree in science journalism from New York University. In his previous life, he pursued a career in science, getting a bachelor’s degree in wildlife biology from Montana State University and a master’s degree in marine biology from the College of Charleston in South Carolina. Bob edited Reading Frames and other sections of the magazine.

    View Full Profile
Share
Image of a man in a laboratory looking frustrated with his failed experiment.
February 2026

A Stubborn Gene, a Failed Experiment, and a New Path

When experiments refuse to cooperate, you try again and again. For Rafael Najmanovich, the setbacks ultimately pushed him in a new direction.

View this Issue
Human-Relevant In Vitro Models Enable Predictive Drug Discovery

Advancing Drug Discovery with Complex Human In Vitro Models

Stemcell Technologies
Redefining Immunology Through Advanced Technologies

Redefining Immunology Through Advanced Technologies

Ensuring Regulatory Compliance in AAV Manufacturing with Analytical Ultracentrifugation

Ensuring Regulatory Compliance in AAV Manufacturing with Analytical Ultracentrifugation

Beckman Coulter logo
Conceptual multicolored vector image of cancer research, depicting various biomedical approaches to cancer therapy

Maximizing Cancer Research Model Systems

bioxcell

Products

Sino Biological Logo

Sino Biological Pioneers Life Sciences Innovation with High-Quality Bioreagents on Inside Business Today with Bill and Guiliana Rancic

Sino Biological Logo

Sino Biological Expands Research Reagent Portfolio to Support Global Nipah Virus Vaccine and Diagnostic Development

Beckman Coulter

Beckman Coulter Life Sciences Partners with Automata to Accelerate AI-Ready Laboratory Automation

Refeyn logo

Refeyn named in the Sunday Times 100 Tech list of the UK’s fastest-growing technology companies