Genaissance to fetch $56 million in stock
Damian J. Troise , Register Staff
06/22/2005
nhregister.com
NEW HAVEN — A Massachusetts company will buy Genaissance Pharmaceuticals Inc. for $56 million in stock, the companies announced Tuesday.
The move will allow Genaissance to continue its research and development of molecular diagnostics and eventually take advantage of the market share enjoyed by Newton, Mass.-based Clinical Data Inc., said Genaissance CEO Kevin Rakin.
Clinical Data provides diagnostic equipment to hospitals, clinical laboratories and physicians.
While Clinical Data provides equipment for many standard procedures, such as blood tests, Genaissance is working on next-generation molecular tests, which will be DNA-based.
"We’re taking personalized medicine and showing that it’s coming of age," Rakin said. "The products we’re starting to produce can be focused on the clinical marketplace."
No major changes are expected at Genaissance, which employs 20 people, Rakin said. The company will be treated as a subsidiary of Clinical Data.
Rakin and fellow Genaissance board member Joseph Klein III will join Clinical Data’s board as part of the acquisition.
Genaissance shareholders will receive 0.065 shares of Clinical Data stock for each share of Genaissance stock they own. Genaissance shareholders will own about 40 percent of the combined company.
The deal is expected to close by December, the companies said.
Clinical Data executives were unavailable for comment.
Paul Pescatello, president of Connecticut United for Research Excellence in New Haven, said the acquisition will benefit both companies and will give Genaissance a clearer path to get to its target market.
"‘Synergy’ is a much-overused word but it really does apply here," he said.
The acquisition is a good way for the company to build its marketing clout, Pescatello said.
"Genaissance has been very nimble about licensing and trying to find a revenue stream," he said. "This allows them to continue research and have the resources to do that."
Genaissance stock, traded on Nasdaq as GNSC, closed at $1.16 a share Tuesday, up 10 cents, or 9.5 percent. Clinical Data shares closed at $18.70, down $1.80, or 8.8 percent |
