NEW YORK (GenomeWeb News) – Capsalus today said it has signed a letter of intent to buy the marketing rights and assets of GeneWize Life Sciences for an undisclosed amount.
GeneWize is the wholly-owned direct-selling subsidiary of consumer genomics firm GeneLink Biosciences and provides DNA customized nutritional supplements, skin care, and gene modulating weight management products.
The company operates in a $20 billion space, and, "[g]iven GeneWize's market leadership, its solid management team and robust financials, we expect the company to become a key driver in significantly enhancing Capsalus shareholder value in the near term," Steven Grubner, interim CEO of Capsalus, said in a statement.
Based in Atlanta, Capsalus produces "progressive broad-based solutions for better physical, nutritional, and emotional health worldwide," it said.
GeneLink will continue to supply GeneWize with proprietary genetic assessments and consumer products. Its Executive Chairman and CEO Bernard Kasten said the deal "will enable GeneLink Biosciences to focus on strengthening our leadership position in consumer genetics, allowing us to support Capsalus and GeneWize with advances in genetic testing, product development, and custom product manufacturing."
The transaction provides GeneWize with financial resources and support to extend its sales and marketing operations and optimize overall business performance, the company said.
Capsalus' "capital infusion in marketing will give GeneWize affiliates more resources to build their businesses and implement a strategy for global expansion," Sharon Tahaney, president of GeneWize, said. "In Capsalus we have a partner who will be significant in helping us take our business to the next level."