NEW YORK (GenomeWeb News) — Gene Logic is “investigating the possibility” of selling “all or parts” of its Genomics business, a slight change in tactics from “considering strategic alternatives” for the unit, which is the language it used as recently as April.
Two months before that, the firm said it may create “a spin-off entity with a retained equity position or other alternative structures to capture value for Gene Logic.”
Selling all or part of the Genomics business will "likely require” shareholder approval, Gene Logic said. The company has hired investment bank Aquilo Partners to consider its options.
Gene Logic made the disclosure in a statement reporting that second-quarter revenues rose 15 percent as R&D spending rose 8 percent and net losses narrowed 30 percent.
Total receipts for the three months ended June 30, which came almost entirely from its genomics services business, rose to $5.4 million from $4.7 million year over year.
R&D increased to $2.7 million from $2.5 million.
The company said net loss decreased to $7.9 million from $11.3 million in the year-ago period.
As of June 30, Gene Logic had $20.8 million in combined cash and equivalents and $15.8 million in marketable securities.