Skip to main content
Premium Trial:

Request an Annual Quote

Nanogen Mulls Sale or Closure of Microarray Business in Bid to Focus on Clinical Dx

NEW YORK (GenomeWeb News) - Nanogen said yesterday that it is looking for ways to exit its microarray business as part of a plan to achieve profitability and focus on its clinical diagnostics strategy.
The company said it has hired Credit Suisse to help evaluate its options, “which may include a sale, partnering, or closure of the array business.”
Nanogen said it expects to complete the evaluation of the array business, which includes its NanoChip instruments and related reagents and consumables, within sixty to ninety days.
The company expects that the sale or closure of the microarray business will decrease expenses and improve cash flow by at least $15 million per year.
Robert Saltmarsh, Nanogen’s CFO, said that if the company sells or closes the segment, "the restructured business will show revenue growth on a year over year basis."
Nanogen said it plans to continue to focus on the clinical diagnostic market, with an “emphasis on real-time molecular and rapid point of care products."
Howard Birndorf, Nanogen CEO, said in a statement that despite “positive“ customer reception for its microarray product line, “multiplex molecular testing remains an early-stage market with slower growth and lower testing volumes than we expected."
He added, "The cost and effort to develop the broad product menu needed to be successful while also working to develop the clinical market over the next several years are large efforts and are expenses that Nanogen can no longer afford on its own." 
The plan follows several recent moves Nanogen has taken to augment its working capital, including a $50 million shelf offering in May and a $20 million convertible debt registered offering in August.

The Scan

Interfering With Invasive Mussels

The Chicago Tribune reports that researchers are studying whether RNA interference- or CRISPR-based approaches can combat invasive freshwater mussels.

Participation Analysis

A new study finds that women tend to participate less at scientific meetings but that some changes can lead to increased involvement, the Guardian reports.

Right Whales' Decline

A research study plans to use genetic analysis to gain insight into population decline among North American right whales, according to CBC.

Science Papers Tie Rare Mutations to Short Stature, Immunodeficiency; Present Single-Cell Transcriptomics Map

In Science this week: pair of mutations in one gene uncovered in brothers with short stature and immunodeficiency, and more.