Orchid Cellmark

Orchid has acquired the paternity and immigration DNA testing business unit from Strand Analytical Laboratories.

A life sciences fund run by Accipiter Capital Management has nominated three new members to be Class I directors on Orchid Cellmark's board.

Orchid also turned a profit for the quarter, as it recognized license fees from a deal with Illumina.

The company will provide DNA testing for five years under a $5.2 million contract.

The Australian firm has taken aim at several firms in the research, molecular diagnostics, and agricultural genomics fields for allegedly infringing its patent covering methods of analyzing non-coding DNA sequences.

The company expects the move to result in $1.4 million in annual cost savings.

CEO Kevin McElfresh said Casework hopes to commercialize the technique, which uses the Illumina HumanOmni1-Quad BeadChip, by year end in order to upgrade its own offering and gain an advantage over rivals that use older technology.

The DNA testing firm sees the closure of a facility in Michigan saving it around $1 million per year.

The license gives Orchid up to $1 million in fees, as well as royalties and preferred customer status.

Excluding the impact of currency, Orchid Cellmark's revenues were up 9 percent for the quarter.

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