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Fund cutback seals purchase
Source: Agencies |
September 18, 2012, Tuesday
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Print Edition
Print Edition
CALIFORNIA-BASED Complete Genomics Inc yesterday said it would be bought by China's BGI-Shenzhen for US$117.6 million, three months after the gene sequencing company started a strategic review.
Smaller gene sequencing companies like Complete Genomics and Pacific Biosciences, known for their aggressive pricing, have been facing intense competition from bigger industry players like Life Technologies Corp and Illumina Inc.
The sector is also under pressure from a cut in funding by the US National Institutes of Health for basic science research. The budget squeeze could directly hurt the companies' main academic and research customers.
The US$3.15 per share offer by BGI-Shenzhen, which includes both non-profit genomic research institutes and sequencing application commercial units, represents an 18 percent premium to Complete Genomics stock's close on Friday.
Complete Genomics said it would get an extra US$30 million in bridge financing for its operations after the deal, which may close in early 2013.
In June, the firm said it was exploring strategic options, including a sale, and would cut about 20 percent of its work force.
Smaller gene sequencing companies like Complete Genomics and Pacific Biosciences, known for their aggressive pricing, have been facing intense competition from bigger industry players like Life Technologies Corp and Illumina Inc.
The sector is also under pressure from a cut in funding by the US National Institutes of Health for basic science research. The budget squeeze could directly hurt the companies' main academic and research customers.
The US$3.15 per share offer by BGI-Shenzhen, which includes both non-profit genomic research institutes and sequencing application commercial units, represents an 18 percent premium to Complete Genomics stock's close on Friday.
Complete Genomics said it would get an extra US$30 million in bridge financing for its operations after the deal, which may close in early 2013.
In June, the firm said it was exploring strategic options, including a sale, and would cut about 20 percent of its work force.
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