On May 29, genetic analysis firm Sequenom (San Diego, CA) and clinical genomics company Gemini Genomics (Cambridge, UK) announced an agreement to merge their businesses in a stock-for-stock deal valued at $238 million. The deal creates a unique company that combines Sequenom's large-scale genotyping with one of the best population genetics sample and data collections linking genes with disease. Neither company was struggling financially and the result is a new, improved Sequenom that not only is more competitive in the race for validated therapeutic targets through a broader range of technologies, but also has more bargaining power should it wish to acquire a drug development arm.
Gemini has an extensive knowledge base in the association of genetic and clinical traits. The company has gathered DNA samples and clinical information from various populations, and discovered disease-associated genes in twins and, through the establishment of Newfound Genomics (St. John's, Canada), in drug trial populations and founder groups (Nat. Biotechnol., 18, 366, 2000). Meanwhile, Sequenom has sold systems, specifically rapid mass spectroscopy-based resequencing technology (its MassARRAY chips), that enable discovery of gene associations; it has also offered licenses for disease-associated genes discovered through its own research programs. The merger consolidates both companies' disease gene discovery programs and their ability to evaluate therapies. “We will significantly enhance that ability to offer genes with a demonstrated disease association in humans through the merger with Gemini,” says Sequenom president and CEO Tony Schuh, “We will now go further up the value ladder and take some genes further to the level of target, validated target, lead, validated lead, and we'll sell that off at all levels.” The new company, which will keep the name Sequenom, will be divided into two parts: a genomics division, which will focus on genotyping, genetic marker validation services, and disease gene association programs; and a biotherapeutics division, in which the genes will be validated.
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