NEW YORK (GenomeWeb) — Transgenomic has completed the divestiture of its Genetic Assays and Platforms (GAP) business unit to Japanese instruments manufacturer Adstec.
The sale, which was announced in September, transfers all of Transgenomic's GAP products, licenses, and technology to Adstec for $300,000. Adstec has also assumed the GAP unit's business, financial, and human resources commitments. Transgenomic has said it expects the deal to cut its quarterly expenses by $1.2 million.
"With the closing of this transaction, we have divested our last major legacy business," said Transgenomic CEO Paul Kinnon in a statement. "The aging WAVE product line and geographically diverse customer base of the GAP Business Unit would have required substantial investments to make it competitive."
The company now plans to focus on its ICE-COLD PCR molecular diagnostics technology, he added.
Adstec President Tsutomu Kojima noted that his company has the "infrastructure and resources to revitalize this business unit, which we view as highly complementary to our current efforts."
This divestiture follows the sale of Transgenomic's ion chromatography product line and assets to Edge BioSystems for $2.1 million in cash in early September. The company also announced a 3 percent drop in third quarter revenue in early November, which it attributed to lower sales from its contract laboratory services as it continues to refocus on the ICE-COLD PCR product line.