Frost & Sullivan Recognizes Exiqon for Growth Strategy Leadership in the Cancer Molecular...

Frost & Sullivan Recognizes Exiqon for Growth Strategy Leadership in the Cancer Molecular Diagnostics Market

PALO ALTO, Calif.--(Business Wire)--
Based on its recent analysis of the U.S. cancer molecular
diagnostics market, Frost & Sullivan recognizes Exiqon A/S with the
2008 North American Frost & Sullivan Award for Growth Strategy
Leadership. The award commends Exiqon for a well-executed market entry
strategy, continued focus on innovation, key partnerships with
industry and Cancer Research Centers, and market-driven product
development approach - all of which position the company as a
formidable force in its industry.

Exiqon's core competencies are in gene expression analysis,
microRNA detection, and microRNA profiling through its miRCURY LNA(TM)
detection platforms, and strong intellectual property in the microRNA
domain. These products and services have helped establish Exiqon as
one of the leading participants in the microRNA space.

"Exiqon strategically entered the U.S. cancer molecular
diagnostics and allied pharmaceutical services market through its $45
million acquisition of privately-held Oncotech," notes Frost &
Sullivan Senior Analyst Dr. Sudeep Basu. "The February 2008 all-share
deal also strengthens Exiqon's position in the overall U.S. life
sciences research and clinical diagnostics markets."

Exiqon's acquisition of Oncotech was both well-timed and
well-executed as it came on the heels of the company's May 2007 IPO -
one that closed more than seven-times oversubscribed. With sufficient
available capital, Exiqon chose the path of downstream integration
into the cancer molecular diagnostics market by acquiring Oncotech.
The salient features of the deal include minimal overlap in the
businesses and good synergies between the companies' core
competencies. These features, together with Exiqon's excellent
executive leadership, have ensured the smooth integration of Oncotech.

Through the deal, Exiqon gains access to Oncotech's
well-established network of hospitals and physicians. This large
customer base, together with a well trained and targeted sales force,
is an invaluable asset for Exiqon. A significant transfer of "know
how" from Oncotech related to negotiating the U.S. regulatory and
reimbursement space is also a vital gain for Exiqon.

From a strategic decision-making standpoint, Exiqon has made the
right choices. Given the difference in their businesses, Exiqon
targets research organizations and companies whereas Oncotech targets
hospitals and physicians by way of its sales force. Hence, it was
important that the sales forces not be combined. Exiqon's decision of
maintaining dedicated sales teams for its diversified business
portfolios will go a long way to ensure customer loyalty and boost
sales for the two business segments.

Analysis of the other deal parameters also supports the strategic
move. The time taken for completion of the acquisition was 92 days,
which is very close to the industry average and hence indicative of
minimal hurdles. Exiqon has unequivocally shown that it is growth
driven and not cost-cutting driven. The revenue growth three months
post-acquisition is strongly indicative of the successful acquisition
strategy. Exiqon will use the Oncotech brand name to market its
microRNA-based cancer molecular diagnostic tests globally and the
first such test is slated for release later this year.

"Pharmaceutical companies now have a rapidly growing interest in
biomarker development and companion diagnostics," continues Dr. Basu.
"Exiqon's proficiency in high throughput screening (HTS), together
with a Bio-Bank of 150,000 tumor tissue samples at Oncotech, positions
Exiqon as a partner-of-choice for pharmaceutical companies."

Exiqon is thus a very well-deserved recipient of the Frost &
Sullivan 2008 North American Growth Strategy Leadership Award in the
U.S. cancer molecular diagnostics market. Each year, Frost & Sullivan
presents this Award to the company that has demonstrated an
exceptional long-term growth strategy within its industry.

Frost & Sullivan Best Practices Awards recognize companies in a
variety of regional and global markets for demonstrating outstanding
achievement and superior performance in areas such as leadership,
technological innovation, customer service, and strategic product
development. Industry analysts compare market participants and measure
performance through in-depth interviews, analysis, and extensive
secondary research in order to identify best practices in the
industry.

About Exiqon

Exiqon combines leading-edge scientific expertise in gene
expression with proprietary LNA(TM) technology. The company's
products, services and scientific staff enable life science
researchers to make groundbreaking discoveries. Moreover, the company
addresses the unmet need for a new approach to the diagnosis of
cancer. Exiqon markets its products directly on www.exiqon.com, or
through distributors, and partners its proprietary Locked Nucleic
Acids (LNA(TM)) technologies through industry leaders. Exiqon is
located in the Medicon Valley area of Copenhagen, Denmark and is
listed on the NASDAQ OMX in Copenhagen.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, partners with
clients to accelerate their growth. The company's TEAM Research,
Growth Consulting and Growth Team Membership(TM) empower clients to
create a growth-focused culture that generates, evaluates and
implements effective growth strategies. Frost & Sullivan employs over
45 years of experience in partnering with Global 1000 companies,
emerging businesses and the investment community from more than 30
offices on six continents. For more information about Frost &
Sullivan's Growth Partnerships, visit http://www.awards.frost.com.

Frost & Sullivan
Jake Wengroff, 210-247-3806
jake.wengroff@frost.com

Copyright Business Wire 2008