By Ron Shinkman, Editor, Laboratory Industry Report
Struggling Transgenomic has exited the genetic assay business.
The Omaha, Neb.-based company announced this week it had sold its genetic assays and platform unit to ADSTEC Corp., a Japanese company. The sales price was $300,000.
“With the closing of this transaction, we have divested our last major legacy business … this divestiture is expected to reduce our expenses by more than $1,000,000 per quarter,” said Transgenomic Chief Executive Officer Paul Kinnon in a statement. “Our management and board of directors believe our resources will be better invested in growing our high-potential products for molecular diagnostics and precision medicine.”
Transgenomic has been developing a PCR platform that claims improved detection of mutations due to performing such tests at lower temperatures.
The company has been struggling as late with growth. It posted a loss of $8.23 million on revenue of $4 million for the third quarter ending Sept. 30. That compares to a loss of $4.1 million on revenue of $6.4 million for the third quarter of 2014. For the first nine months of 2015, the company has posted a total loss of $13.6 million, although its accounts receivable have been growing and were at nearly $10 million at the end of the quarter. The company’s stock has been trading in the $1 a share range in recent months, far below its trading price of around $4 a share in early 2015 and $6 a share during the first half of last year.