NEW YORK (GenomeWeb News) — Gene Logic today said it plans to sell its genomics business to Ocimum Biosolutions for $10 million as it continues to reorganize itself as a drug-repositioning and -development company.
Gene Logic said the deal allows it to hold full rights "in perpetuity" to use information from the genomics business to help build its drug-repositioning and -development business.
Gene Logic said the divestiture, combined with the sale last year of its Preclinical business, “marks a turning point in the transitional phase of Gene Logic's strategic redesign [and] enables the company now to ... concentrate … [on] drug development, a business the company believes will produce great value potentially for our shareholders,” Gene Logic CEO Charles Dimmler said in a statement.
The company said the deal came after an "intensive campaign" of evaluating alternatives for the business.
Dimmler said the deal came after a "rigorous assessment" of the company's business strategy, and that streamlining its assets will allow it to "execute with singular focus" its drug-repositioning plans.
For now, the company plans to focus its development work on a small molecule drug candidate that would treat inflammatory bowel disease.
Financial terms of the acquisition call for Ocimum to pay Gene Logic $7 million when the deal closes and the final $3 million 18 months later. Consummation of the sale is subject to certain undisclosed conditions and approval from Gene Logic's shareholders.
The purchase price may change based on certain potential revisions to the balance sheet at date of closing, Gene Logic said. Additionally, Ocimum will assume certain undisclosed liabilities associated with the genomics assets and business.