Sequenom to Acquire Center for Molecular Medicine
Sequenom, a provider of genetic analysis products, has signed an agreement to acquire the Center for Molecular Medicine, a Clinical Laboratory Improvement Act certified clinical diagnostics laboratory based in Grand Rapids, Michigan.
Center for Molecular Medicine (CMM) is a joint venture between Spectrum Health, a not-for-profit health systems in Michigan, and the Van Andel Research Institute, an independent research institute with significant molecular biology expertise.
Under the terms of the agreement, Sequenom will pay a purchase price of approximately $4 million to acquire CMM and will enter into collaborative agreements with Spectrum Health and the Van Andel Research Institute.
Approximately 90% of the purchase price will be paid in shares of Sequenom common stock. Sequenom has also received a tax incentive package valued at up to $20 million over 12 years. The project includes a potential, near-term capital investment of approximately $10 million and the potential creation of several hundred jobs over five years.
Acquisition of the Clinical Laboratory Improvement Act (CLIA)-certified lab will allow Sequenom control over all aspects of the commercialization of its SEQureDx technology, including marketing and communication programs, and critical sales and third-party payer reimbursement contracting strategies.
Harry Stylli, president and CEO of Sequenom, said: “This acquisition positions us well to successfully launch our SEQureDx Trisomy 21 Down syndrome test through a CLIA-certified lab on schedule during the first half of 2009. Our relationship with Spectrum Health should be invaluable as we expedite prospective clinical validation studies for our Trisomy 21 test as part of our market development plan.”