Gene Logic to Lay Off 80 as Part of Genomics Division Restructuring
Gene Logic said this week that it will lay off approximately 80 employees in its genomics division by Oct. 5 as it restructures the unit.
The company announced the restructuring in June when it said the genomics division revenues would be "significantly lower" than anticipated for both the second quarter and the full year of 2006. Gene Logic withdrew its financial guidance for 2006 and 2007 as a result.
The company said this week that the staff reductions will lower its annual salary and fringe benefits costs by approximately $8 million. The company said it also expects “additional savings in certain non-employee costs."
Following the lay-offs, retained employees will “support existing products and services and ensure ongoing service levels are effectively maintained for current and prospective customers," Gene Logic said.
The company added that “affected employees will be given severance and outplacement assistance costing approximately $1.5 million.”
The lay-offs will not affect Gene Logic's preclinical and drug-repositioning divisions, the company said.
Gene Logic is scheduled to report its second-quarter results on Aug. 4.
Glaxo Will Use Expression Analysis' Genotyping Services for PGx Research
Expression Analysis this week said it will provide GlaxoSmithKline with microarray-based genotyping services.
Under the agreement, Expression Analysis will support GSK’s pharmacogenomic studies in clinical trials.
Financial details were not disclosed.
ABI's Fiscal Q4 Organic Revenue Grows 6 Percent, Piper Jaffray Downgrades Stock
Applied Biosystems last week said that fiscal fourth-quarter revenue increased 9 percent as real-time PCR and mass spec jumped and DNA sequencing slid.
ABI said total net revenues for the three months ended June 30 increased to $523.1 million from $478.5 million during the similar period in 2005.
Excluding the impact of ABI’s March 2006 acquisition of the Ambion research products division, revenues for the fourth quarter increased 6 percent over the year-ago period. The company reported $14.9 million of Ambion-related revenues for the period ended June 30.
Sales reported by ABI’s real-time PCR and applied genomics segment jumped 23 percent to $169.7 million from $138.5 million.
Sales from ABI’s DNA sequencing segment slid around 4 percent to $137.8 million while the company’s mass spectrometry unit grew 13 percent to $134.7 million year over year.
Revenues from ABI’s core PCR and DNA synthesis unit increased 12 percent to $51.7 million as sales of “other” products declined 7 percent to $29.2 million.
ABI’s R&D spending for the fourth quarter of 2006 declined to $46.3 million from $48.2 million in the fourth quarter of 2005.
Profits for the fourth quarter grew to $76.7 million from $71.6 million year over year.
ABI said three main items affected the comparability of results for the fourth quarters of both 2006 and 2005, increasing pre-tax income by $14 million. Items for the fourth quarter of 2006 included a $16.9-million pre-tax gain from the sale of an ABI-owned facility, amortization of expense of $2.9 million related to acquired intangibles, and a $1.4-million favorable tax adjustment to a previously recorded charge in the second quarter of the firm’s 2006 fiscal year.
Items affecting the fourth quarter 2005 included pre-tax items that decreased income before taxes by about $20.5 million. The company also recorded fourth-quarter 2005 tax benefits of $23.5 million related to US R&D credit carryforwards, the expected results of Canadian examinations, and the settlement of UK tax matters, the company said.
Looking ahead, ABI said it believes that fiscal 2007 revenue to grow in the mid- to high-single digits. This outlook includes the full fiscal year impact from the Ambion acquisition and currency effects.
Revenues are expected to increase for both instruments and consumables during fiscal 2007, which began July 1, ABI said. Specifically, the company expects revenue from RT-PCR/applied genomics and mass spectrometry products to grow and receipts to decline from its core PCR and DNA synthesis and “other” product segments.
Revenues in the DNA sequencing product category are expected to remain flat compared with fiscal 2006.
Piper Jaffray last week downgraded shares in Applied Biosystems to “Market Perform” from “Outperform” after the company reported its fiscal fourth-quarter earnings.
ABI said that fiscal fourth-quarter revenue increased 9 percent as real-time PCR and mass spec jumped and DNA sequencing slid.
The company also said fourth-quarter income rose to $76.7 million, or $.41 per share, from $71.6 million, or $.35 per share, a year ago
According to Dow Jones, analysts polled by Thomson First Call expected the Foster City, Calif., company to post earnings, on average, of $.34 per share.
Clinical Data Consolidates North Carolina Facilities
Clinical Data has consolidated its genomic labs and its offices in North Carolina, the company said last week.
Clinical Data acquired the labs and offices as part of its acquisition of Genaissance and Icoria. Icoria staff and operations have been relocated to a Cogenics facility (formerly belonging to Genaissance) in Morrisville, NC.
The previous location in Research Triangle Park was leased space and Clinical Data agreed on a financial settlement as part of a separation agreement.
According to the company, the move will reduce costs and improve efficiency and throughput of DNA- and RNA-based services.