NEW YORK, May 2 – Transgenomic has signed an agreement to acquire Annovis, a San Diego-based nucleic acid and reagent maker, for 1.9 million shares of Transgenomic common stock and $500,000 in cash, the companies announced Wednesday.
"Through this acquisition we continue to build our core competency set which will better enable us to provide total solutions to our customers,” Transgenomic’s CEO Collin D'Silva said in a statement. "Synergies between our technologies will provide an opportunity to develop new products and solutions for our customers and to drive growth for our combined company."
Transgenomic of Omaha, Neb., has sold its WAVE nucleic acid fragment analysis system to over 500 medical research institutions and biotechnology companies. The system can be used for single-strand DNA separation; DNA purification; and double-stranded DNA variation detection and separation and analysis.
Annovis, a privately held company whose major stakeholder is GlaxoSmithkline subsidiary S.R. One, makes nucleic acid building blocks called phosphoramidites as well as oligomimetics, enhanced DNA and RNA molecules that are more stable and bioavailable; and fluorescent markers, dyes, and reagents.
Annovis is also conducting central nervous system research to develop drugs that target glutamate receptors.
The new combined company hopes to leverage Annovis’ oligomimetics technology, Transgenomic’s analysis system, and Transgenomic’s customer base to garner market share in the DNA diagnostics sector, the company said.
Transgenomic expects the acquisition of Annovis to add about $6 million in revenue in the remaining quarters of 2001 and more than $12 million of revenue in 2002. Transgenomic expects consumable sales to rise as a percentage of total sales, to 30 percent of revenues in 2001 and even more in future years.
In morning trading on the Nasdaq, Transgenomic’s share price remained unchanged, at $7.30 per share.