NEW YORK, May 12 - A United States bankruptcy judge has approved Genaissance Pharmaceuticals' acquisition of nearly all the assets of DNA Sciences for $1.35 million in cash, Genaissance said today.
Genaissance announced its plans to acquire DNA Sciences when the company filed for bankruptcy in early April.
Genaissance said that the companies are "working towards a prompt closing" of the asset purchase agreement, and that it also expects to modify a license agreement relating to the purchased assets that would reduce the net cost of the purchase to approximately $1 million.
The acquisition will net Genaissance a number of assets, including DNA Sciences' Morrisville, NC, genotyping facility; an IP portfolio that includes licenses from the University of Utah and Yale University to patents for diagnosing Long QT Syndrome; and a commercially available thiopurine S-methyltransferase diagnostic test for identifying adverse effects caused by the thiopurine class of drugs.
DNA Sciences has revenues of approximately $2.5 million per year. Genaissance said it expects these revenues to grow more than 25 percent annually, becoming accretive to its earnings in the third quarter of 2004.
Genaissance predicted that its pro forma revenues for 2003 will be $12.5 to $14.5 million, up from its previous guidance of between $10 and $12 million. The company has a goal of reaching financial break-even in 2005.