Gene Logic Inc. has announced that it had signed an agreement to sell its Genomics assets to Ocimum Biosolutions Ltd., a global life sciences R&D enabling company.
Under the agreement, Gene Logic will exchange its genomics assets to Ocimum for $10 million cash, of which $7 million is to be paid at closing and $3 million is payable pursuant to a promissory note due 18 months from the date of closing. The purchase price is subject to adjustment based on certain potential revisions to the balance sheet at date of closing. Additionally, Ocimum will assume certain liabilities associated with the Genomics assets and business.
Consummation of the sale is subject to certain conditions, including the approval of the Gene Logic shareholders who will be asked to authorize this transaction at a special meeting to be held for that purpose.
“This is a transforming event of significant strategic proportion,” said Charles L. Dimmler, III, President and Chief Executive Officer of Gene Logic.
He continued, “This agreement stands as another major milestone on the Company’s path to build a drug repositioning and development business. This event represents the culmination of a rigorous assessment of the Company’s business strategy undertaken last year and that led, as a first step, to the sale of the Company’s Preclinical Division.
Today’s event marks a turning point in the transitional phase of Gene Logic’s strategic redesign. It enables the Company now to execute with singular focus: to concentrate its proprietary know-how in this newly emerging segment of drug development, a business the Company believes will produce great value potentially for our shareholders.”
Under the terms of the Ocimum sale agreement, Gene Logic retains full rights in perpetuity to utilize the existing information data bases of its former Genomics business as key elements in building its emerging drug repositioning and development business. Furthermore, the Company will retain specified assets related to molecular diagnostics and will continue to explore strategic alternatives for these assets.
Gene Logic’s decision to sell its Genomics business resulted from a comprehensive review of alternatives reasonably accessible to the Company with respect to these assets. Assisted by its investment bankers, the Company conducted an intensive campaign over several months time to identify and evaluate a range of alliance or sale alternatives.