News of a pending acquisition by PerkinElmer Inc. sent shares of ViaCell Inc. soaring more than 50 percent on Tuesday.

The companies announced late Monday the signing of a definitive agreement under which Waltham, Mass.-based PerkinElmer will acquire Cambridge, Mass.-based ViaCell for $7.25 per share, or about $300 million in cash. The deal, which represents a 52 percent premium to ViaCell's Monday closing price of $4.77, drove the shares to a new 52-week high of $7.33 on Tuesday.

Marc Beer, president and CEO of ViaCell, said in a conference call Monday that although the offer was unsolicited, the ViaCell board "felt very good about the value." He added that the combination of the two companies "creates a very strong player in the arena of newborn health."

PerkinElmer offers prenatal and neonatal screening for more than 50 genetic disorders. The ViaCell acquisition will add access to ViaCord, an umbilical cord blood stem cell banking business, as well as an entrenched sales force targeting both obstetric professionals and prospective parents. ViaCord sales in 2006 totaled $54.1 million, and estimates for 2007 are about $67 million.

As of now, cord blood is used to treat more than 40 diseases, including blood cancers, blood diseases such as sickle cell anemia, metabolic disorders and genetic diseases. The demand for cord blood banking is expected to grow as new uses are identified, and Beer said the market is "still in its infancy" and has billion-dollar potential.

Another profit center for PerkinElmer could come from ViaCell's ViaCyte technology, which has the potential to become the first product for oocyte cryopreservation to hit the fertility market. Viacell started a pivotal trial in March that uses the technique to store and thaw eggs following in vitro fertilization, and data are expected in 2009. (See BioWorld Today, March 21, 2007.)

PerkinElmer spokesman Kevin Lorenc told BioWorld Today the company has no plans to divest ViaCyte and will continue to develop the product for the time being.

What PerkinElmer does plan to divest is ViaCell's preclinical program investigating the therapeutic applications of umbilical cord blood in cardiovascular indications, cancer and diabetes.

ViaCell's cardiovascular research into the ability of cord blood-derived stem cells to repair the heart was being conducted with Johnson & Johnson subsidiaries Centocor Inc. and Cordis Corp. The companies were sharing research costs, but ViaCell received undisclosed up-front payments, and Centocor reserved the right to negotiate a clinical collaboration. (See BioWorld Today, June 14, 2006.)

PerkinElmer Chairman and CEO Gregory Summe said cell therapy is "not a focus" for his company, which is "looking for strategic partners" for those programs.

Despite the planned cell therapy divestiture, Lazard Capital Markets analyst Joel Sendek wrote in a research note that the deal is a "good strategic move" for ViaCell.

PerkinElmer will commence a cash tender offer to purchase all of the outstanding shares of ViaCell. The deal has been approved by the boards of directors of both companies and is expected to close in the fourth quarter.

Shares of ViaCell (NASDAQ:VIAC) closed up $2.41, or 51 percent, at $7.18 on Tuesday. Shares of PerkinElmer (NYSE:PKI) closed down 95 cents at $28.91.