NEW YORK (GenomeWeb News) — Nanogen today said it plans to cuts its US headcount by 15 percent, or around 48 people, by the end of the year in an effort to improve its cash flow and profits.
The cuts will come from R&D, manufacturing, and sales and marketing, Nanogen said.
In a statement, Nanogen President and COO David Ludvigson said the company is taking the steps to consolidate several recent acquisitions, among them Epoch Biosciences, SynX, Spectral Diagnostics' cardiac assets, and an Amplimedical business.
“The integrations have occurred smoothly with consistent revenue performance,” Ludvigson said. “We are now moving into the second stage of integrating our acquisitions and have identified a number of areas where we can consolidate functions and eliminate redundant activities, which we expect will improve operational performance.”
The news comes a couple of days after Nanogen disclosed it has sold royalty rights to its MGB technology for five years. The company has already received a $20 million upfront payment from the buyer, Canadian healthcare investment shop Drug Royalty.
"Monetizing a portion of our royalty stream provides us with a non-dilutive means of raising capital,” Nanogen CEO Howard Birndorf said in a statement.
As part of the royalty deal, between July 2006 and December 2011 Nanogen will receive royalties up to a specified threshold, above which both companies will share royalties.
Nanogen will retain ownership of the technology and will receive all royalties after December 2011.
The MGB technology is used in 5' nuclease real-time PCR applications in biomedical research. Applied Biosystems has licensed the same technology for its TaqMan products.