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Clinical Data to Acquire Genaissance in $56M Stock Deal; Combined Firm to Tackle Molecular Dx

NEW YORK, June 21 (GenomeWeb News) - Diagnostic developer Clinical Data plans to acquire Genaissance Pharmaceuticals in an all-stock transaction valued at $56 million, the companies said today.

 

The acquisition is expected to close in the fourth quarter.

 

Clinical Data views Genaissance's pharmacogenomics capabilities as a "strong strategic fit" as it takes steps to enter the molecular diagnostics market, said Israel Stein, president and CEO of Clinical Data. "We believe the acquisition will allow us to leverage our market knowledge and experience with GNSC's platform to become a leading pharmacogenomics company with high margin, proprietary tests and services serving broad markets," he said.

 

Under the terms of the agreement, which has been approved by both company's boards of directors, Genaissance stockholders will receive 0.065 shares of Clinical Data common stock for each share of Genaissance common stock. Based on the companies' closing prices on June 20, this represents a price of $1.33 per share of Gennaisance stock.

 

Genaissance shareholders will own approximately forty percent of the combined company.

 

"Genaissance is aligning itself with a financially stable company, enabling us to integrate our pharmacogenomics products and services with a well-established company in the development and marketing of medical diagnostics," said Kevin Rakin, Genaissance CEO, in a statement.

 

Rakin, along with current Genaissance board member Joseph "Skip" Klein III, will join Clinical Data's board of directors following the merger. Burton E. Sobel, a professor of biochemistry at the University of Vermont, will also join the Board, bringing the total number of directors to seven.

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