NEW HAVEN, Conn., and FREMONT, Calif., April 1 /PRNewswire-FirstCall/ -- Genaissance Pharmaceuticals, Inc. (Nasdaq: GNSC - News) announced today that it has entered into an agreement to acquire substantially all of the assets of DNA Sciences, Inc. for approximately $1.3 million in cash and common stock. DNA Sciences today also announced that it has voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of California. Concurrently, DNA Sciences will seek bankruptcy court approval for a pre-negotiated asset purchase agreement by Genaissance. Under the terms of the agreement, Genaissance would acquire substantially all of DNA Sciences' assets, subject to bankruptcy court proceedings and approval and customary closing conditions, which the two parties expect to occur within 60 days.
"This proposed transaction would further our goal of building a comprehensive business in drug response pharmacogenomics while maintaining our internal financial benchmarks," said Kevin Rakin, President and Chief Executive Officer of Genaissance Pharmaceuticals. "The post-acquisition Genaissance would be a true one-stop shop for the healthcare industry to apply pharmacogenomics to drug development. After completing the integration, we would expect to have greater revenue, a larger client base, additional genotyping services, a broadened intellectual property estate and an enhanced ability to develop proprietary products. Overall, the DNA Sciences acquisition complements our commercial, financial and clinical goals. We believe that this acquisition would be cash flow positive in 2004 and, thus, would contribute to our goal of reaching financial breakeven in 2005."
"By joining forces with Genaissance, our employees, customers and technology partners would benefit from a company that has significant market share in the area of pharmacogenomics," said Steven Lehrer, President and Chief Operating Officer of DNA Sciences. "Genaissance understands the full potential of DNA Sciences' products and technology. With our assets, Genaissance would have knowledge and expertise to greatly improve patient care through the use of pharmacogenomics."
About Genaissance Pharmaceuticals, Inc.
Genaissance Pharmaceuticals, Inc. is a world leader in the discovery and use of human gene variation for the development of personalized medicines. The Company markets its technology and clinical development skills to the pharmaceutical industry as a complete solution for improving the development, marketing and prescribing of drugs. Genaissance has agreements with eight major pharmaceutical, diagnostic and biotechnology companies: AstraZeneca, Bayer, BD (Becton, Dickinson and Company), Biogen, Johnson & Johnson PRD, Millennium, Pfizer and Pharmacia. Genaissance is located in Science Park in New Haven, Connecticut. Visit the company's website at www.genaissance.com.
About DNA Sciences, Inc.
DNA Sciences, Inc. is a privately held applied genetics company focused on developing DNA diagnostics for critical medical and therapeutic decisions. The company utilizes DNA based tests in clinical trials to understand differential response to medication and diagnose diseases state. It has a combination of research and GLP/CLIA facilities and is involved in a broad range of genetics activities extending from discovery and development to genetic testing services. DNA Sciences is also a leading provider of pharmacogenetic services to the pharmaceutical industry. DNA Sciences is based in Fremont, California and was founded in May 1998. Visit the company's website at www.dna.com. |
