NEW YORK, Nov. 15 (GenomeWeb News) - Transgenomic has sold its oligonucleotide-manufacturing facility and laid off 60 staffers worldwide as the struggling company takes steps to trim expenses and save cash, the company disclosed today.
Transgenomic announced the belt-tightening moves as part of its third-quarter financial report, in which a mild up-tick in revenue amid widening losses and slightly more than $1 million in the bank painted a bleak near-term picture for the Omaha, Neb.-based company.
Transgenomic said Eyetech Pharmaceuticals paid $3 million for "substantially all" of the assets of its Boulder, Colo.-based synthetic oligo shop. Eyetech also assumed equipment and "other operating leases" associated with the
Eyetech will also retain "essentially all" of the staffers employed at the
Additionally, Transgenomic will lay off around 60 employees worldwide, and close two US-based research and development facilities linked to the firm's synthetic nucleic acid business, and two European field offices.
The divestiture and lay-offs are expected to save Transgenomic between $10 million and $12 million per year.
Revenue for the three months ended Sept. 30 inched up to $8.2 million from $7.5 million year over year.
Net losses ballooned to $8.4 million, or $.29 per share, from $6.1 million, or $.25 per share, in the year-ago quarter.
R&D spending decreased to $1.7 million for the third quarter, from $2.4 million in the comparable period of 2003.
Transgenomic held cash and cash equivalents of $1.1 million as of Sept. 30.