Firm will consolidate diagnostic operations in Denmark in order to gain operational and infrastructural efficiencies.
Exiqon reported its intention to divest Oncotech, its certified CLIA laboratory operation in Tustin, CA. As a result, Exiqon will recognize a noncash loss on divestment and impairment of goodwill of approximately DKK 205 million ($39.54 million) and revise its full-year 2009 guidance accordingly. Exiqon’s diagnostic ambitions and long-term financial objective of reaching profitability by 2011 with current capital are unchanged.
Oncotech was acquired in November 2007 to accelerate the establishment of Exiqon’s diagnostic business and to set up a commercial platform for the launch of its miRNA-based diagnostic products. Two years on, the company has decided to consolidate its ongoing development of diagnostic products based on miRNA at its facilities in Denmark in order to gain operational and infrastructural efficiencies and to free up human and financial resources.
Exiqon will continue developing its programs for colon cancer recurrence, identification of cancer of unknown primary, and early detection of colon cancer in serum. As a consequence of the decision to divest Oncotech, Exiqon will seek partners to co-develop and commercialize its miRNA-based diagnostic products.