is cutting 30 employees from its genetic analysis business in the wake of continuing weak equipment sales this year. The company is also repositioning the unit to exploit potential synergies with the molecular diagnostic business.
This strategy is expected to decrease expenses by $8 million in 2009 and $10 million annually after that, according to Sequenom. Estimated charges of $850,000 will be recorded in the second quarter in connection with one-time employee termination benefits including severance.
Sequenom points out that this cutback is only to survive the current economic situation. As the economy shows improvement and revenues resume an upward trend, it will add resources to the GA business unit.
For now the company will realign operations in the GA business to focus on developing methods and assays for translational research and patient profiling in clinical trials. These measures are designed to leverage the potential of Sequenom’s molecular diagnostics segment.
“Our agility as a company has allowed us to implement a strategy over the past several years to focus on the high-growth area of molecular diagnostics and to leverage the tremendous expertise and innovation generated by our fundamental understanding of genetics and history as a systems and applications provider in genetic analysis,” comments Harry Stylli, Ph.D., president and CEO. “We remain well positioned to launch our innovative SEQureDx prenatal technology in June.”
SEQureDx isolates and analyzes circulating fetal nucleic acid from a maternal blood sample. Sequenom notes that this would be a safer option to chorionic villus or amniocentesis.
Past News from Sequenom
Sequenom Acquires SensiGen’s Molecular Diagnostics in $8.7M Deal (Jan. 27, 2009)
The Immune Tolerance Institute, Sequenom, and UCSF Ally for SCID Diagnostic (Jan. 14, 2009)
Sequenom Bids to Pick Up Exact Sciences for $41M (January 12, 2009)
Sequenom Licenses Genomic Nanosystems’ Patents on Digital PCR Technologies and Methods (Sept. 22, 2008)
Sequenom to Use Xenomics’ Transrenal Nucleic Acid Platform to Develop Prenatal-Related Products (Oct. 30, 2008)