Genomic Health to Sell 3 Million Shares
Genomic Health plans to sell 3 million shares of its common stock through an underwritten public offering, the company said this week.
The company said it will use the proceeds from the sale for general corporate purposes, marketing, R&D, and for expanding its labs.
Genomic Health said it will grant underwriters a 30-day option to buy an additional 450,000 shares.
The company's stock closed at $15.79 on May 14, the day of the announcement.
J.P. Morgan Securities will be sole book-runner for the offering, and Lehman Brothers, Piper Jaffray, and JMP securities will be co-managers.
BioServe to Use Seegene's Tests to Detect STDs, TB in India
BioServe said this week that it has inked a partnership with Seegene to develop a detection system to diagnose a number of infectious diseases in India.
Seegene, which is based in Seoul and maintains US headquarters in Rockville, Md., will access BioServe's repository of Indian DNA samples to collaborate on development of a test for several sexually transmitted diseases, tuberculosis, and HIV-1 and HIV-2, BioServe said.
BioServe, which retains research and production facilities in Hyderabad, India, will use Seegene's Seeplex STD detection system to test for Mycoplasma hominis, Ureaplasma urealyticum, Neisseria gonorrhoeae, Chlamydia trachomatis, herpes simplex virus 2, and human papillomavirus. The assay also will test for tuberculosis, BioServe said.
BioServe cited a World Health Organization estimate that India sees roughly 1.8 million new cases of TB each year. BioServe also said there are more than 5.1 million Indians currently infected with HIV.
The test is based on Seegene's dual priming oligonucleotide technology, which is a DNA amplification method that can be used in simultaneous multi-pathogen detection assays, BioServe said.
Specific financial terms of the agreement were not released.
Jessica Joung, manager of Seegene's Rockville branch, told Pharmacogenomics Reporter sister publication GenomeWeb Daily News that the two companies plan to evaluate the collaboration at the end of 2007, and decide at that time whether to extend the agreement.
Nasdaq Drops Gene Logic from Biotech Index
Nasdaq said last week that it has dropped Gene Logic from its Biotechnology Index after a semi-annual review of biotechnology companies.
According to the Nasdaq website, companies listed on the Biotechnology Index must maintain a market capitalization value of more than $200 million, an average daily trading volume of at least 100,000 shares, and must meet certain other criteria.
Gene Logic's market cap is currently listed at $48.6 million with volume of 15,872 shares.
Nasdaq reviews and ranks its biotechnology index companies in May and in November. Eligible companies must meet minimum requirements for "market value, average daily share volume and seasoning as a public company.”
Gene Logic Pens Drug Repositioning Pact with Abbott
Gene Logic said last week that it has signed a drug-repositioning agreement with Abbott that covers multiple clinical drug candidates that have passed Phase I human clinical trials.
Gene Logic said it stands to receive milestone payments for each new drug candidate that Abbott reenters into clinical development, as well as royalties for drug candidates that make it to market.
Gene Logic also will have the option to an exclusive license to any new drug candidate that Abbott chooses not to pursue. In such a case, Gene Logic would pay royalties to Abbott.
A Gene Logic spokeswoman said this open-ended agreement is the first such agreement it has entered with Abbott. Under its drug repositioning program, Gene Logic has partnerships with Pfizer, Roche, and other pharmaceutical companies.