According to Gene Logic, the purchase price was $15 million (a portion of which will be held in escrow for up to one year to guarantee certain obligations under the agreement), subject to adjustment for certain changes in working capital and the assumption of certain liabilities associated with the business.
Morgan Joseph & Co. Inc. advised the company on this transaction. The sale will allow Gene Logic to focus resources on drug repositioning and continue exploration of strategic alternatives for its genomics resources in molecular diagnostics and clinical biomarker development. The sale of the Preclinical Division is resulted from its recently completed strategic review.
“This sale enables us to focus our resources and talents on growing our business in drug repositioning. It also enables us to explore strategic alternatives for our genomics resources in the field of molecular diagnostics, and to continue to develop our relationships with new and existing genomics services clients,” said Mark Gessler, president and CEO, Gene Logic Inc.
“Our decision to focus is driven in part by the continuing growth of our drug repositioning business, in which Eli Lilly recently joined a client list that includes Pfizer, Roche, and Organon. We believe the caliber of these partnerships speaks both to the promise that top pharma sees in this emerging approach to drug development, and to Gene Logic’s growing leadership role within it,” he added.