NEW YORK (GenomeWeb News) - Gene Logic said Friday that it has sold its preclinical division to San-Francisco-based contract research organization Bridge Pharmaceuticals for $15 million.
By unloading the division the Gaithersburg, Md.-based company said it will be better able to focus its resources on its drug repositioning business and to explore “strategic alternatives” for its genomics resources in molecular diagnostics and clinical biomarker development -- a strategy it initially disclosed in November.
The $15 million purchase price for the preclinical services group is subject to adjustment for "ertain changes in working capital and the assumption of certain liabilities associated with the business," Gene Logic said. In addition, an undisclosed portion of the purchase price will be held in escrow for up to one year.
Gene Logic acquired the preclinical services business in 2003 when it purchased TherImmune Research for $52 million.
Gene Logic CEO Mark Gessler said in a statement on Friday that the refocus is "driven in part by the continuing growth of our drug repositioning business," and cited recent deals with Eli Lilly, Pfizer, Roche, and Organon as examples of that growth.
Bridge, a drug developer and supplier of pharmaceutical data services for clients in Asia, said in a statement that it will retain all of Gene Logic's employees and will name the division Bridge Global Development Services.
Bridge is a spin off of Menlo Park, Calif.-based SRI International with US headquarters in San Francisco and laboratories in Beijing.