Gene Logic to Sell Genomics Division to Ocimum
As with other bioinformatics companies, such as Lion bioscience AG and Tripos, Gene Logic’s software revenues have dwindled as drug companies curtail spending and reorganize operations. And Gene Logic’s new business model has yet to record revenues. Ocimum adds to both its bioinformatics and service businesses with this acquisition. This is the Indian company’s third foreign acquisition in two years (see IBO 3/15/05, 11/30/06).
Gaithersburg, MD 10/15/07; Indianapolis, IN 10/15/07—Gene Logic has agreed to sell its Genomics assets to Ocimum Biosolutions for $10 million in cash. The Genomics business includes the BioExpress System and ToxExpress System databases, Genesis Enterprise System bioinformatics software and a microarray services business. In 2006, revenues for Gene Logic’s Genomics business declined 57.1% to $24.3 million. “Ocimum continues to position itself as a preferred partner for genomics outsourcing,” said Ocimum CEO Anuradha Acharya. Ocimum stated that it will continue to operate the business’s laboratory facility in Gaithersburg, Maryland. Gene Logic retains rights to utilize existing database information and specific molecular diagnostic assets. The company’s decision to sell is in line with its strategy to concentrate on its drug repositioning and development business. “Ocimum continues to position itself as a preferred partner for genomics outsourcing,” said Ocimum CEO Anuradha Acharya.
