NEW YORK (GenomeWeb News) – Gene Logic today said that an internal business review confirmed that the firm's genomics business is weak and that the drug-repositioning business is poised to grow.
After reporting a 44-percent decline in revenues for the second quarter, Gene Logic restructured the unit in August to reduce expenses and spending. The restructuring included layoffs and the closing of an office.
The company retained “core competencies” for its current products and services and will continue to support existing customers, Gene Logic said.
While Gene Logic will try to sign new customers, the company will also make the assets from the genomics business available to other areas, such as drug repositioning, clinical biomarker development, and molecular diagnostics.
Gene Logic also said the review “confirmed” the potential of its drug-repositioning business. Recent agreements with Pfizer, Organon, and Roche confirm the industry’s acceptance of the business, the company said.
The company expects the preclinical services business to continue improving its operating margins and to narrow losses. The business has sufficient capacity as a result of facility expansions, the review found.
The company said in June it would conduct the review after withdrawing its financial guidelines for the second quarter and full year 2006 and 2007.