Sequenom Reviews Research Business and Cuts Staff
The Genetic Analysis business provides the MALDI TOF MS–based MASSarray system for genomic analysis and had 2012 revenues of $43.2 million. In the first six months of this year, Genetic Analysis revenues declined 2.7% but operating income rose 43.9% to $1.1 million. The layoffs, which constitute 12% of the workforce, follow lower-than-expected second quarter revenues due to Centers for Medicaid & Medicare coding issues that delayed reimbursement for the firm’s diagnostic tests.
Washington, DC 8/20/13; San Diego, CA 9/23/13—Sequenom has announced it is reviewing potential strategic alternatives for its Genetic Analysis business. In addition, last month, the company announced in an SEC filing a cost reduction effort that includes the termination of approximately 75 employees. The company expects to record $10 million in compensation-related expenses in future operating expenses on an annualized basis related to the layoffs. The benefits are expected to be evident starting in the fourth quarter.
